Working for yourself

‘I’m going to work for myself’ is a declaration often heard from Service leavers. ‘I’ve had enough of taking orders; I want to do my own thing.’

The realities of business start-up are covered elsewhere in this edition, but there are some issues that people might like to consider before they commit themselves too firmly to a course of action that they might later regret. Even people who are absolutely certain that this is right for them can learn from the experience of others.

It takes time to acclimatise to new ways and an unfamiliar world, with experiences to be had and lessons to be learned. Some may be expensive, and it may be better to learn them at an employer’s expense. Most brand new civilians get some things wrong in the early days, no matter how much may go right a little later. So, good advice is to go it alone only once you really know what you are doing.

While large numbers of start-up businesses are successful, many are not. The statistics of business failure make horrifying reading. Sometimes this is because one of the so-called ‘four Ps’ – product, price, place and promotion – is wrong. Often it is due to cash flow. Banks, HM Customs & Excise, and the Inland Revenue usually do not hang around to collect what is owed. Other creditors may be equally impatient, while bad debtors and slow payers put otherwise healthy firms in jeopardy.

There are other considerations as well. Most small businesses start in a spare room in the proprietor’s house. Anyone who has never worked from home for extended periods should have a trial run before they commit to it seriously. It can be very difficult to separate work from relaxation, while spouses who are used to full use of the house may not want someone else there, and it can be easy to do more interesting things than deal with the necessary paperwork.

The alternative is premises, which can be expensive and have letting agreements that require a long-term commitment. In any case, location is a key factor in business success and good locations tend to cost serious money.

If you plan to be a consultant, working in clients’ offices, you will need to be an expert in your field, or why should they want your opinion? You will need to keep up to date, which takes time, or work will be hard to get once your current range of contacts and expertise is exhausted. You will still have to manage your business and yourself, and promote and market yourself to future clients at the same time as servicing the current ones.

It can be hard to cope with the feast or famine that happens to many micro businesses. There may be little capacity left for someone who is working ten hours a day on a contract and spending a little time on the necessary accounts, payroll, VAT, insurance, reports and returns (yes, there are plenty out there as well) to be actively seeking the next lucrative contract.

You will not be paid for holidays or when you are sick. Your pension arrangements will be your responsibility, and other potential pitfalls include data protection, compliance, business plans, Internet security, health & safety, and personal guarantees for loans.

Do not be discouraged from starting a business by anything written here. However, anyone straight out of the Services should be sure that they know enough to take this step. Commercial life is hard, with a great deal of competition. Unless your idea is so clever, or your expertise so unique, that delay might be fatal to the rapid acquisition of wealth, you should learn a little about business before going it alone.

In this issue, as well as business start-up, we cover careers in sport and fitness, and diving. Both are favourites with people with extensive experience in these areas and comparative novices who want new challenges. Telecommunications has passed through some rocky patches recently but technology progresses, and brings fresh opportunities in its slipstream. After all, there is certainly no decrease in the numbers of computer and telephone users.

Aviation, too, has weathered recent storms and, notwithstanding the green lobby, looks set to increase in popularity. Top-end business travel is ever more luxurious, while cattle-class numbers are booming. Charities are leaner and more competitive than ever before, but continue to offer considerable employment opportunities for Service leavers.

A look at Wales finishes our annual cycle of reports from Great Britain’s regions, while we also feature some advice on pensions and an insider’s view of opportunities in the construction industry. Many people hardly consider pensions until it is too late to start one, but it is surely sensible to have some idea what you are going to live on once you quit work. As far as construction is concerned there is a huge shortfall in both numbers and skills against an increasing need for workers for routine jobs and several high-profile projects. It is certainly an employment field that is worth a long look.