Thinking of Going it alone

There are many valid points in this thread.
Seeing as how I am in the same boat as many of you, (working full-time, free lancing on the side, and dreaming of taking the leap) I have been doing some research.
A great book I read was called "The perfect business". You can find it here:
http://www.amazon.com/exec/obidos/AS...382956-8078459

Instead of explaining how to start a business, it makes you aware of what being your own boss means. It will make you ask yourself if you are really cut out for self employment.

After reading this, I have assured myself that I am, but I am not ready yet. Maybe in another year, when I have more clients and my financial situation (and hopefully the economy)is a little better.

BTW. I have no affiliation with this book or its author, I just read it and felt it was great in assisting me with my decisions (it is not too long of a read). I will now need to read some books on the actual process of starting a business here in Florida. (licenses, insurance, name registration, bank accounts, etc...) If anyone knows any good books on this subject, please do tell.

--Steve
[email protected]

Well I'm a full-time student and I've just opened up my own company for web and flash design and so far lots of people seem interested. In my case I've got a lot of people to target (local bands, record labels etc.), but I think having a PLAN helps, IE knowing where you're going to advertise and make sure it's gonna pay off... It sounds fairly obvious I know, but you'd be amazed how many people advertise in the strangest of places, and it just doens't get the righ audience.

hi i did it, saved 4000 pounds and quit, i work for the ppl who i freelanced to now on a retainer, and another company full time (they think) :)

moneys good when its good (made £1000 in one day last year)
but when its bad its very bad (3 weeks no work)

u need to look at yourself (i didnt do this) u cant choose your lifestyle, when u work for mr X he wants u at work for 9am. When u work for u, u are the boss

my downfall was getting adsl (u can play quake iii :) )

i never failed a deadline, but if a client say nike phones at 9am and u are in bed....

little things u mb do at work now
upload a site using works t2 connection
fax machine
isdn
printers
also talking to ppl, found it v hard when i left no conversation all day on your own, ppl dont know how it is until you are there (i talk to the cats) :s

plus's
sunshine and being free
money (get isa's)
accountants (not a firm find a freelancer)
phone bill (tax)
the room where u work (tax)
electricity (tax)
gas (tax)
car and fuel (tax)
machines (macs/pcs/software) (tax)
sneeky meals out (with the missus) (tax)

mb if u dont like your job now quit it for mb 3 months and try doing your own thing if its bad get another one.

good luck with whatever u decide :)

bp

OK - RazoRmedia asked a valid question and deserves a strait answer. So here's my 2 cents (which is probably about what it is worth).

A LOT has to do with your personal situation. If you are married or are responsible to or for anyone, you should play it safe and wait a while until you have extra $$ in the bank and good equipement at home (not to mention the support of your family) Other than that it really is up to you. If you think that you can discipline yourself, market yourself, make connections online and off -then you should go for it. Exposure/Networking is key.

I am not going to say it's easy - but it is certainally a huge imporvment to having to report to the same face in the same way every day. You must always put your client first and you have to be "hungry" for the work. Never get too cozy in your income or on your couch - cause it could all end tomorrow. If you can live with that - then by all means GO. It's not going to be like you get to go to the beach every day - so if that's your motivation then stay at the job. And while I will agree that they are a lot of developers out there - there are enough clients out there too. I am constantly amazed at how many people DON'T know what the web can do - for business - for themselves, etc...

The web has huge amounts of information for developers - whether it be how to's... or legal info (copywrite, contracts etc) - read it all.... never stop learning new techniques and keep your mind open to new ideas.

Of course a plan B is always good to have. If you consider yourself "employable" then not working for a while shouldn't set you back too far and you can always go back to the 9-5 life if you're feeling squimish. My business isn't making me rich, but it makes me happy. I enjoy my life style more, (family, time, etc) I enjoy being able to choose who I work with and the entire creative process of development and internet marketing. I can honestly say that I love my job and to me that was worth sacrificing some security. It has been said that if you love what you do the money will follow.

Interesting that everyone who has thought about upping and leaving their corporate benefactors has been in the 'personal choice' category.

Let me tell you my experience.
After moving back to the UK after living in the US for a hell of a long time, I met a Brazilian girl, and we were married in London. After spending two years in London, we decided that we would move to Sao Paulo, for various reasons, unimportant for this story.

At this point in time (June 2000, to be precise), I had two work choices with my non-existant portuguese skills. Teach English - not exactly my dream job, or follow an idea I'd had for some years - get into the design buisness - specifically web design. I had the art background, the creativity and the talent (the second two are subjective, so you'll just have to look at my portfolio to see if you agree) and my wife had the marketing degree to make the company a physical reality, plus getting out of the super-saturated London graphics market was just the chance I needed. So that was that.

And here we are, just about 2 years later, still doing sites (as well as other animation work and a little db stuff too). The work has been fun, gratifying, frustrating, simply mind numbing, mixed with a little apprehension when the clients don't come with the same regularity as the mortgage bill. But although I think sometimes that I'd like to try again with the corporate blah, I fondly remember the general ineptitude of my superiors, paid twice as much, yet not smart enough to get drunk in a brewery. Now in the good months, I get paid as much as my superiors were ever paid, and it gives me an opportunity to treat our customers with a sincere respect, something I thought that this business was severely lacking when I had the misfortune to speak to some internet guys in the UK and US.
Of course, working 14-15 hours some days sucks, but the holidays - it's Braazil, man - I'm going to the beach!

It was 3 years ago next month that I went out on my own. Scary as hell at first, now I could never turn back. I give great customer service (I think...) One of the best things I did was get an office. Made me look professional and gave me the seperation of home and work. I was having trouble concentrating on work and playing those stupid games too much. No games at the office - no work at home. I still gotta learn how to do the books, I got an accountant that I barter with, but I know I can do better. Bartering is another thing, do not go overboard with it, only do it if you really want the stuff you are bartering for. You can always branch out, I do technical support work all the time to bring in money. Things like networking computers for broadband, anti-virus stuff and teaching prople how to run their computer. One thing I do on easy sites for restaurants and small stores is teach them how to update their own web site - they love it and it keeps me free to do major changes and recovery when they totally screw up their site...heh heh heh...

Anyway - Just Do IT !!

I have been reading through all these with great interest, every thread has been helpful so thanks to you all.

What next?

I am going to wait, wait to build some capital up and also wait for my freelance work to plateau out into a nice steady income. It would be foolhardy to just quit and hope for the best, I will take some time to think, to build up my increasing portfolio and to generate some cold hard cash to fall back on.

It would be easier to do it gradually, ie work a 3 day week and the rest of the time build up my own business but I doubt my employers would agree.

Thanks for all the comments and advice, you're all fantastic! (oh, and to answer an eralier question, I am not married and have no kids, just a shopaholic girlfriend!)

I have been freelance for over 4 years now - 3 of those have been directly in the graphics and web industry.
I have lots of freelancing friends some of who charge upto £60GPB per Hour!

Theres is very little work about in Europe and the UK. I think its the same in the US due to the fact I have met quite a few Americans who have come here because things are worse in the USA.

I have been told to wait untill the winter 2002 - the economy will pick up then - it will be stable in 2003 - but I feel I really must warn you. Lots of us are suffering at the moment - having lots of troubles paying rent - earning less than half what we used to - and thats ALL of us - not just a few.

I myself am going into a full time position. I just can't survive anymore as a freelancer. I have many corporate sites from big companies, but I have got by on little jobs here and there recently. Things are bad. Wait - if you want to go freelance - WAIT! do it when things are looking better.

Just my advice

Phil

do you think we could try any harder to put him off???

Remember, we are not all just trying to put a downer on things - there are lots of upsides, like the others have mentioned, being able to spend time with the kids (if you have any!), flexable hours, none of the office politics rubbish (which makes a nice change) etc..etc...

It isn't as hard as perhaps i feel we might have made out, in all honesty it takes nothing at all to startup yourself, BUT, it is well worthwhile spending a little time on it which can make things easier down the line...

attention i don't know where you live, but in the UK, you can get hit with different tax rates on your house if you work from home, so check out fully what the business rates etc are and if you can get around not having to declare it... and as someone else said insurance not only health insurance but make sure you have some form or business insurance / personal liability cover...

make sure you have looked into all the hidden costs that might be applicable to you, like the house rates etc, and also is the computer hardware you have at home going to be sufficiant etc.etc..

man, i think i am starting to sound like an old women, but you get the idea...

Good Luck, and i hope it goes great for you...

Oh yeah, do you have a personal website with a portfolio of your work etc?

All this talk (in addtition to my crappy job) is getting me edgy to leave...

the thoughts I have had over the last year or so that I have considered it are...

POSSITIVE
set my own hours
no crappy boss
choose my clients
all profit
great tax write-off's
no commute (I go 65 miles each way now)
creative freedom (within clients reason)
possibility to boom and blow up huge
more time with wifey and kids

NEGATIVE
no client, no paycheck (no financial security)
no office to interact and get ideas and critique from (Good and bad)
you have to do everything, sales, design, book keeper

in the end, I would love to do it down the road, when I have kids probably... I think it is so important to not be spontaneous with something like this, unless you can afford to (no wife, etc...). I agree with others about having a cushion of a few months functioning expenses. It sounds exciting, and with a crappy job (that I am grateful for in this market), I consider it a lot.

TIMING IS EVERYTHING!

but risks are exciting... Good Luck!!

I am in the UK

I have a large portfolio but its offline, will be finished next week

If anyone has taken the plunge into self employment (From a full-time job, not from school), please post.

I am 30yrs old, have been in the industry professionally for 4 years and am considering self employment. I am married, but no kids (maybe in a few years). I have a fully equipped office in my house right now. So I would plan to work from home for a while.
My wife works also, and I am covered under her insurance so that is not an issue.
It is just hard to give up a steady stream of income.


I am curious to know of anyone who is in a similar situation or who has already done it. What kind of income potential is realistic?

BTW. I live in South Florida USA

i did it myself... i had been mainly working in the stock markets before but had alot of friends in the graphics world and always medled and practiced since i was at school.

People have said that things are bad at the moment in the UK... i disagree... i think they are great. the only time that i don't work is when i can't be bothered (a worrying amount of the time!!)

It comes down to what sort of a person you are... If you treat clients well and do a good job for a fair price work is definitely not hard to come by... you might have to actively go out and get it, but come on, let's be honest, there are hell of alot of companies that need some serious attention...

I think it very much depends on your sales ability.. thinking about it, i have always been in that sort of enviroment and love it, and it has been said hat i could sell ice to an eskimo (and i am not the one who said it either)...

What sort of income potential is there? Well, that is like the 'how long is a piece of string?' question... how good are you? how much do you currently charge? how much are you prepared to go out there and get the work? how motivated from home will you be? the list goes on... but put it this way, it is most definitley possible to pay the mortgage ( a bloody hefty one a that!!) and still have a fair amount of cash left over.

All the replies concur with what I've been going through over the last couple of months. Two workmates and I have started a web and print design company in sunny Canada. The entire reason for doing so was justified by the number of clients we had in a side-venture we had going while employed by our former boss.

What actually made us go it ourselves was one project that created the all important 'tipping point'. That is, the point where there is no choice but to do ... whatever you're forced into doing.

My advice to anybody thinking of starting to freelance...line up the work and keep with your old job until you HAVE TO leave. You'll save yourself the financial headaches, plus you'll have the crucial 'company portfolio' to point prospective clients to. You don't want to be referring to work you've done for your former employer...it screams 'non-professional'.

aaahhhhh Sunny Canada!
How I long for the warm beaches and and bright sunny days.
LOL

Sounds like Zolgor got it right.
How long have been in business for yourself?
How did you set up your business with your workmates?
Are you partners? Corporation? (I am not sure how it works up in the great Sunny North)
Did you define your roles and responsibilities in writing?
I am always concerned about partnerships, because if the communication is not clear, expectations can be very misleading.
(ie. One person may stay at work 15hrs a day but the other guy who only comes in for 8hrs gets more accomplished) Situations like this can cause great troubles down the road.

I am hoping to start off on my own and network with other proffesionals to do contract work together. This would allow me to appear larger than I am without having to deal with ownership issues of my business.
Working with someone together and owning a business together are two seperate things. Sometimes they can be great but when they go sour....Lookout!

This is indeed a discussion for all concerned, I personally can tell you from a moral standpoint how demoralizing it is that after 15 years military to work for non motivated people who are destined to fall on their proverbial swords, because, one; they've found their niche in life and dont want to grow or at least take some small risks. Maybe I'm used to taking risks, being in the miltary tends to prepare you for this, but here in Italy (my home now) risk taking is very different, people are defensive in nature and want a solid guarantee, granted the younger generation coming up doesnt think this way, but are eventually conditioned by their environment. I don't know how many times my mother in law has told me to go for it, and she's probably the most conservative out of the bunch. I have just been paid for my first project, organized by ME. What does this mean? Ask my wife who just told me she wants more kids!!! Really folks, listen to the advice of others, they wouldnt offer it if they didn't mean well. Me personally, I dont have any advice to speak of, I lead by example.

I am thinking of doing the same thing. I have a good steady client base, I am also getting screwed by my company. I am having to get more new business in. I want to be paid the full amount from the client instead of a poo salary. Also keep the new business for myself.

Jump in at the deep end.

What does it say in Extensis suitcase.

Twenty years from now you will be more disappointed by the things that you did't do than by the ones that you did do....

Quote:

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Originally posted by Arian


Twenty years from now you will be more disappointed by the things that you did't do than by the ones that you did do....

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Wow Arian,

That is a cool quote and so true. I am perhaps one of the older members of the Flash Kit community. Fortunately looking back I don't have a lot of regrets about things I have not done. But then, I am and have been since 1986 - a freelancer...

Cheers.

I have built, owned and lost a few companies over the years, freelanced, worked W2 while freelancing... every combination. Each has it's pitfalls and rewards. It's important to understand that if you work for someone else you're only helping to make them wealthy. Your goal should always be to work for yourself.

It's also important to understand what type of money you are working for. When you work as a W2 you are working for 50% money. In other words at least 28% of your money is gone before you ever get any money. Good old Uncle Sam. Only after the taxes are taken out do you get to pay any of your bills or debts. Once you're done paying your other taxes you're close to 50% money.

When you not only work for yourself, but more importantly, setup a corporation, you get to pay your bills, deduct that expense from your income and then pay your taxes. This is a significant distinction. This is how you build wealth.

I have had to work for others as a W2 while I freelanced on the side to build a company a couple of times. But my goal is always to own the business. Even if you freelance on the side always incorporate it, an LLC is an easy and inexpensive corporate structure for freelancers.

Good luck,
J. Scott Durkin

dubletap > what worries me is why have you gone through so many companies?? As you no doubt know, the skill is in keeping the company going not in the starting it up which any old fool can do....

But you miss the issue of the fact that when you are in a *stable* salaried job, you have none of the potential grief and responsibility of the running of the company.

Having your own company is for some people and not for others and i think you know if it is or is not for you...

I disagree that is how you build wealth.. delegation is a better way of building it - and you can still build wealth if you work for someone else and in some situations what makes you your money (or perhaps more precisley, as much as you make) is who you work... are they a big name in the industry etc..etc.. which can and does automatically bring you clients of above a certain level and with it jobs of a higher value...