I was wondering if anyone has invested in building a practice and hiring staff before they had sufficient clients, a kind of "If we build it, they will come" scenario.
At the moment I have about 115k of recurring income from clients with most paying monthly. This should increase to about 135k in the coming months as I have some clients who are just starting up and their activity will increase rapidly over the next year.
I have invested in IT, software, website, a nice office and have two part time staff - all of which cost money. One of my part-timers will be leaving shortly (amicably) and I have the chance to hire someone really good for 32k for a 4 day week. She would really take the pressure off me and allow me to grow the business. My other part-timer is a whizz at marketing as well as bookkeeping. The entrepreneur in me is telling me to offload the technical stuff and concentrate on growing the business. The accountant in me is reminding me of the drop in income I'll have to take. I have some money put aside for this purpose but it is still a scary prospect. (On the other hand, if I did take her on board, I would be even more motivated to up-sell to current clients and find new ones as well as ensuring I get paid a good fee.)
I notice that a lot of people on AWeb make a nice living from working from a home office with none of the cost or stress of hiring staff and paying for an office. Has anyone gone the other route and tried to build a practice first and then get enough clients.
Thanks for your advice as usual.