How do I get out of this situation - The Book-keepers Forum (UK)

additionsbookkeeping · Veteran Member

How do I get out of this situation

RobH · Expert

I think you need to calculate how much you need to be taking in as a minimum in order to survive, compare that with what business you already have (assuming you already have some clients) and try to get to that level before packing in the job.

Clearly where you are, morale is at an all time low and this isn't healthy, however if you have a chance of a redundancy package then I would be inclined to hang on and even talk to the manager you report to about it. they may be struggling with the idea of laying you off and this takes the pressure off you. Of course if the redundancy is 1 year at the statutory minimum figure, then you may decide to jump earlier.

It is very difficult to guage how quickly you will find clients, it is much easier once you are established. I'm a big believer in networking and trying to get your personality out there so you are remembered amongst all the competition. I also have a USP in my telephone answering business which helps.

I would say not to make a rash decision but think about it in an objective way, list out the pros and cons and then make a decision.

Good luck,

Rob

BackOfficeGroup · Guru

Going it alone is always so daunting and many people have the luck of getting a nice redundancy package to help them along the way, for others they may not be so fortunate.

Finding clients is not the easiest thing but I have a friend, he does Lettings, and compared to what he used to make, being a 40% taxpayer, he now struggles to make ends meet, but he is happy as he is his own boss.

You could always register with an agency to do some contract work, whilst building your business up. Its short term and does not tie you into anything but gives you the confidence boost you will need.

As Rob says, think about it long and hard but also don't be the one to say 'if' I had done this.....

P

additionsbookkeeping · Veteran Member

I think you are right about my morale, I feel defeated already and its not even 5pm on Monday!! I need to try and get out of this frame of mind and make some decisions. I wonder if they would let me cut down my hours, that would almost kill 2 birds with one stone. I would have a steady income and more time to build up my business.

I don't just offer bookkeeping, I do payroll, credit control and all other office and admin services, database info collection, etc so I am hoping I have enough services to offer to appeal to plenty of people. Its all things I have done in my working life at small firms so I think theres a demand for it, or at least there was!!

additionsbookkeeping · Veteran Member

That is sort of my thinking, I have to clear £200 per month (more in the school holidays) just to put my daughter in after school club so I can work. No job means I would have less money but I would have a lot less to spend, I wouldnt necessarily have to use my car most of the week if it came to it so I could manage on a lot less money if I wasn't tied to childminders, etc.

I am absolutely frazzled at the moment and I really can't carry on in this frame of mind so I need to change the mindset or the situation or both. As I say holidays in 3 weeks so that will be a good mind clearer!!

RobH · Expert

It's only natural that your morale is low, you are probably surrounded by people who feel the same and then it's a vicious circle. If you can change your mindset then that would be great, but going part time may be ideal for both you and your employer (so long as they don't expect the same amount of work from you). Phil makes teh suggestion of joining an agency whilst building the self employed work up and a change of scene in a buzzing company may be the tonic you need.

It seems you offer plenty of services, and maybe the credit control is something to push in these times of slow payers.

Rob

Peasie · Expert

additionsbookkeeping wrote:

I wonder if they would let me cut down my hours, that would almost kill 2 birds with one stone. I would have a steady income and more time to build up my business.

It might kill three birds as the firm would reduce its costs when it is struggling financially.

Best not be talking about killing birds, isn't Rob a vegetarian? Someone on this forum is I know that, even if I'm not 100% sure who.

BackOfficeGroup · Guru

I did just that when I left the hotel where I was working without a job to go to!

I got experience in a charity and also learnt Sage on the job - I hadnt used it before but told them I had!! Steep learning curve. then I went on to a travel co doing reconciliations and then into the city to work for big names like Texaco and HSBC, all contract work.

P

additionsbookkeeping · Veteran Member

Yes it would kill 3 birds Peasie, but I am feeling mercenary today and shall only count my own birds!! LOL

I feel better already, credit control services would be a good one to push in this climate, why didn't I think of that??

The agency work again would be good, I could learn different computer packages as I only really am au fait with Sage. I am Sage certified so maybe I can do a bit of a credit control training thing, whereby I set up a system of credit control and then train them to manage it in Sage.

Thanks guys, I realise there is a light at the end of the tunnel now, I was simply looking the wrong way!!

kjmcculloch · Guru

I was working full time (well 4 days on, 4 days off) and starting my bookkeeping business at the same time, it wasn't really working. I spoke to a friend who had done the same with a printing business and he told me "if you run your business part time, you'll always have a part time business" ok, it's not very profound but to me it said that if KM Bookkeeping wasn't my main income then I wouldn't be so bothered about it. I wouldn't put in the effort I needed to, I wouldn't put in the time I needed to.

Then there were loads of shift changes at work, and they offered voluntary redundancy. With 2 boys under 3 I was a bit scared but decided this was the chance I needed. I only got £2k, but it was a bit of breathing space. I wish I had done it earlier.

I feel now I have the time to dedicate to my business, and the incentive I need, being if I don't find the business I don't eat (ok, it's not that drastic, but not far off).

My personal opinion is if you have a safety net of a full time job you'll never put the effort into a new business that is needed. The first sign of trouble you'll bail out because it doesn't pay the bills.

Like Philip said about his friend, I make nothing like the money I used to, but I'm so much happier and more content.

Not sure if my ramblings will help you.

Kris

additionsbookkeeping · Veteran Member

That is helpful Kris, I am in the same boat as you were by the sounds of it.

I am going to get some cards put up in local shops and have a real push on advertising, I have a friend who has said she will answer any enquiries whilst I am away so I can get cracking straightaway on it.

I would actually rather have less money than sit at work feeling like I did today, its a terrible feeling. I liked where I work, still do as it goes but I cannot see how it can continue losing money at the rate it does. Theres no plans for how we can cut back, I don't even think we can cut back to be honest and even if we did theres no guarantee. Its harder every month to find the money to pay people and I just don't have the belief anymore that it will pull round and get into profit again. I think its just going to limp along until it falls over and I think today has proved that I don't have the stomach to sit here and watch it.

That makes me feel bad but at the end of the day its a job, I am lucky to have one but I don't want one that makes me feel physically ill.

-- Edited by additionsbookkeeping on Monday 12th of July 2010 09:09:11 PM

dizzy lizzy · Member

Hi - how did you get on?

Ive gradually built my business up over three years working at night when the wee one is in bed and then working full time during the day so he could go to a private nursery. Every now and then I would work weekends when hubby was home or grandparents took our son for weekends away

In June this year I managed to finish up full time and tailor my business to when my son starts school.

Thanks to word of mouth with original clients I now have quite a few.

Good Luck

Quentin Pain · Senior Member

I am also interested in how you got on. I wrote a series of articles, one part of which may help you a little with how to go about marketing your business on a budget:
http://accountingforeveryone.com/bookkeeping-business-from-home-part-3/