Going it Alone

BanjoSpanner

After 10 years working for big multinationals in senior positions I am feeling a very great urge to break away and take the plunge by going into business for myself. I just can't shake the feeling that I'm working hard for someone else, so why not put my energies into working for myself ?

My area of expertise for the past 10 years is in accountancy and finance. I've worked for major insurance companies and international investment banks in senior finance roles, currently financial controller for a bank. So my proposed area of business would be in that general area, finance and financial management. Also I have a lot of exposure to corporate governance matters I am the company secretary also. My idea is to provide financial and company management to small owner run businesses. Basically to let them take their hands off anything to do with running their company and focus on what they do best, be that a plumber, a carpenter, a small building contractor, or wherever there's a small business being run.

My weakness - I'm not a qualified accountant. In fact I've got nothing more than a leaving certificate. My 10 years solid and varied experience is all I've got. I can very much hold my own as much as any qualified professional in the field, however it's all gained through experience and I do not have the letters after my name.

Two questions I'd like to put out there. One is do you think there's any demand for the services I want to provide ? And second, what impact do you think my lack of a professional qualification will have on my chances of gaining some clients ?

Thanks.

Chet Zar

BanjoSpanner wrote: »

After 10 years working for big multinationals in senior positions I am feeling a very great urge to break away and take the plunge by going into business for myself. I just can't shake the feeling that I'm working hard for someone else, so why not put my energies into working for myself ?

My area of expertise for the past 10 years is in accountancy and finance. I've worked for major insurance companies and international investment banks in senior finance roles, currently financial controller for a bank. So my proposed area of business would be in that general area, finance and financial management. Also I have a lot of exposure to corporate governance matters I am the company secretary also. My idea is to provide financial and company management to small owner run businesses. Basically to let them take their hands off anything to do with running their company and focus on what they do best, be that a plumber, a carpenter, a small building contractor, or wherever there's a small business being run.

My weakness - I'm not a qualified accountant. In fact I've got nothing more than a leaving certificate. My 10 years solid and varied experience is all I've got. I can very much hold my own as much as any qualified professional in the field, however it's all gained through experience and I do not have the letters after my name.

Two questions I'd like to put out there. One is do you think there's any demand for the services I want to provide ? And second, what impact do you think my lack of a professional qualification will have on my chances of gaining some clients ?

Thanks.

I'm sure there is always going to be a demand.

How about combining getting a qualification with doing consulting/freelance work at the same time? Two birds with one stone where one complements the other, so to speak?

EIREHotspur

BanjoSpanner wrote: »

My idea is to provide financial and company management to small owner run businesses. Basically to let them take their hands off anything to do with running their company and focus on what they do best, be that a plumber, a carpenter, a small building contractor, or wherever there's a small business being run.
Thanks.

With that Business attitude I'd say go for it.

I don't have any qualifications in what I do but can do websites as good as anything out there.

It is results that count and if you can get started and get your name and reputation built up then you will succeed.

Cicuma

I don't think that not having an accounting qualification should hold you back. From what I can understand there is nothing to stop you offering Bookkeeping or Payroll services without a qualification and there are many bookkeepers who have an agreement with a Chartered Accountant to sign-off the accounts at the end of the year.

Obviously it is a matter of selling your experience to any potential clients and convincing them that you can do the job. This is the biggest difference for most people when they launch their own business - you might be great at your job but if you can't prospect and sell you will not survive. No-one is going to spoon feed you work.

In general I hope that their is a demand for the services that you offer as you are proposing a business model very close to our own !

kennyb3

Not to be negative or put you off but I think id like people to be honest with me.

I work in practice and from what i see small businesses are mainly focused on cutting costs and not adding to them at present.

i.e. preparing their own personal tax returns rather than having them done professionally even if they arent fully competent.

Big businesses may be different but id just thought id throw that in there. It's hugely competitive out there with many fully qualified accountants out of work and quoting for jobs at minimum wage rates.

Anyway something for you to consider.

Giving up a good job is a huge decision in the current environment.

Despite what I say if you have the motivation, the contacts etc give it a go.

Maybe try do it non risk first - i.e part time in your current job and if it works out go full time.

PaulPinnacle

kennyb3 wrote: »

I work in practice and from what i see small businesses are mainly focused on cutting costs and not adding to them at present.

i.e. preparing their own personal tax returns rather than having them done professionally even if they arent fully competent.

I understand the sentiment there and perhaps it is more indicative of the general situation as a whole, but as a small business owner I'd find myself very much on the other side of this.

I want to drive my business on, I want to focus on the areas I excel at and where I can bring value to my clients, I want to ensure I'm correctly applying deductibles to minimise my tax bill and be fully compliant with the regulations without having the headache of losing much of my valuable time.

Personally, I see investing in professional expertise in this area as a major net positive result for my business (in terms of in-house resources, non billable hours, headaches and compliance). Perhaps I'm the exception that proves the rule, but I'd have imagined there's a high number of SMEs that share my view.

amen

My area of expertise for the past 10 years is in accountancy and finance. I've worked for major insurance companies and international investment banks in senior finance roles, currently financial controller for a bank

Working in a large organisation is very different from working for yourself.
You will have to go out and advertise, knock on doors, meet clients, negotiate payments etc. You don't really have to do any of these at the moment.

be that a plumber, a carpenter, a small building contractor

I would imagine most of these already have accountants, book keepers ( partners husband/wife) to these activities. Why would they switch to you ?
Also trades peoples are often self employed and have no wish to grow their business into multi person companies.

My idea is to provide financial and company management to small owner run businesse

Maybe in a small business but again they already have accountants.

company management

What expertise do you have in this?

My weakness - I'm not a qualified accountant

Big disadvantage. A lot of qualified professionals out there.

PaulPinnacle I see investing in professional expertise in this area as a major

But this isn't an investment in a professional expert. To me that is someone with relevant commercial experience and the qualifications to back up that expertise.

Sorry op to be brutal but I think you are crazy leaving a secure job to jump into the unknown especially when there are many qualified people without jobs.

professional expertise

Shad0r

BanjoSpanner, its your life and I believe very strongly in doing something to earn a crust that your passionate about. If you want to work for yourself, I'd say go for it BUT with one proviso.

DO NOT JUST JUMP IN WITH BOTH FEET!

(By the way for whatever its worth I've worked in just about every size company known to man and now have my own business)

Firstly of all working for yourself is nothing like working for a multi national. Hell its not even like working for a small company. You think you are working hard for someone else's business but you would be wrong to think that you can work the same way for your own business. You will need to do sales, marketing, the stuff your doing now, your own IT, etc etc.

Do not hand in your notice until you've done your homework. So plan out your business: - what's your business model? Where is your revenue going to come from and who specifically are your target market?

I've never really believed that classroom education was any better than the education one can gain from the university of life BUT equally I would be slow to hand over the financial reigns of my company to someone who didn't have a professional qualification. THAT said, I picked my accountant based on rapport and location if I'm being honest.

From reading about what you're planning to do I think you need to think a bit more about how you are going to make money, and here's why:

I have a small business and I absolutely hate having to do the books. Its my least favourite task each month and I would love to give it someone else to look after. BUT I never would. Not even if they were related to me!!

I don't think any business owner can afford to not know exactly where they are at in terms of the financial side of their business.

Also for an accountant, for a small business the going rate appears to be between 600 -1000 quid per annum, depending on the volume of sales a business does and whether they are getting a completed excel sheet, or a shoe box full of receipts at the end of the year. For that they will look after my various tax responsibilities.

Would it be helpful for me if I had someone to give me guidance on tap on issues like strategic financial planning, cash flow, working capital etc? Absolutely! Can I afford to pay for that kind of advice? Not in the traditional sense.

What I'm saying is that you need to come up with a business/revenue model that is new/different or better than what's out there. Also being in finance I'm sure I don't need to tell you that your target market needs to be able to pay the cost for the services you provide!

Do a business plan, figure out exactly who you are going to sell to (small business by the way isn't a specific enough target market) and exactly what you are going to sell to them. Do your market reserach and figure out what your USP is (Unique Selling Proposition). What can you offer the competition can't.

Hope that helps.

Neil