I've been self employed - sole trader not limited company - for over 15 years. Very different field - HR. Company I worked for got merged, choice of staying or going with a good deal so I went. Never had to advertise, all came by word of mouth, now almost 70 and 'retired' except that some clients keep asking me to do things to get them out of various holes. Can't travel much at the moment so I say yes.
Although its a very different field, some general things might help:
- Even if you get work on day 1, it will be a while before you get paid. I hate owing money, had some roofing work done, guy gave me a bill and rang me when he got home to say thanks for the BACS payment which arrived before he got there. But thats me, many aren't like that. If you do work via estate agents on rentals they can take months to pay up, a plumber I know refuses to do that any more, but even with private customers you have to do the work, finish it and wait a bit. So make sure you have working capital or enough personal savinge to get you through.
- There is no safety net - no SSP or sick pay, no pension contributions, no life cover unless you pay for it, no holiday pay, if it ends badly you might get UC but the unemployment benefits are minimal. Again think "if I couldn't work for xxx days/weeks how would I cope?"
- Work comes and goes - it doesn't bother me because I only aimed to work 50-60% of full time but most don't have that luxury. But what overheads do you have? Mine is just a laptop which I own, internet connection and a mobile phone (used to have a fax machine too, remember those?) and PI insurance through my professional body. If I'm not working no real money is going out. I do my own accounts. But, if you have loans for kit, pay an accountant, rent space, pay liability insurance, and so on the money goes out whether you are working or not. Allow for that in your planning.
- What is the market like - what can you offer? In HR, recruitment and day to day stuff is ten-a-penny; I don't do that - I have a lot of knowledge on pay and benefits and am good with numbers and reports so have done a lot for companies that are re-organising or merging. I am old and look wise even if I'm not, so help with disciplinary/grivance stuff with very senior employees. You can't ask your HR Officer to handle a dismissal of a Director, so they get me in. So I have a niche - 2 niches - which is fine. You can't compete with the mass market stuff - what can you offer and why will they come to you?
- Most of my work can be done at home - all of it now because people prefer remote meetings with covid - but on the occasions I do travel its a drain on time resources. Assuming you want to work locally, look around you. Here in the South Cambridge villages (where I couldn't afford to buy now - could just 26 years ago) lots of people are having work done, fancy extensions, decorators vans, lots of Teslas/Mercs etc on drives. Yes -lots will want and be able to pay for high end work. Drive round some areas in East Anglia, even not far away, quite the opposite. So does it look like there is a market near you, and how would you get started in it?
- Think about what portion of your time is chargeable. You will do quotes and estimates, visits and so on from which no work results, you will have to maintain your workshop and tools, you will have to source the right timber, etc. You will have fallow periods. Maybe 2/3 of your work time will be chargeable. Maybe 4/5. Hazard a guess - but it won't be 100%.
Maybe try this to help you think more. Make a list of what you do now, not in detail (I use #8 screws....) but more generally. It might go:
Make ..... in a workshop to a design
Do things whn I am told
(finish on time every day?)
Design things
Order materials
++++
Now sit quietly somewhere comfortable and go down your list and say "I enjoy that bit and would like to do more" or "I really don't like that much and want to do less" or even "I hate that bit ...."
Now add to the list what you might have to do if self employed. It would certainly have:
Meet customers and be nice to all of them
Prepare estimates
Do my accounts
Do my tax/VAT returns
Chase unpaid invoices
Arrange bank loans
Deal with complaints
Maintain my own tools and machines
Plan my time
++++++
What do you like doing, what do you dislike? No point making £££ but hating every minute.
And finally: when I led an HR team I always had someone to discuss things with - even if it was just to confirm that my thinking was straight. We've got a problem with ....I plan to....what do you think? Oh, hadn't thought of that, maybe we should ....
When you are on your own, you are on your own. All the decisions fall to you, if you get in a hole you have to get yourself out of it. You can't phone the boss and say "customer won't accept it what should I do" - you have to sort it out.
I'm not saying don't go self employed but work out why you are doing it. Its not for everyone.