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Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants



How to overcome your fears and become your own boss


If you've always wanted to run your own company but don't know how to get started it can be extremely daunting. The good news is it doesn't have to be.

The fear is of losing the stability of a regular 9 to 5 income and of the pressure of pitching your dreams to heartless VC executives with no way back if they can't see your vision.


“…the entrepreneurial highway is littered with the wrecks of the dreams of founders who were unable to get investors to share their enthusiasm…”




The truth is unless you are an experienced entrepreneur or have access to vast cash reserves this is probably an ill-advised way to go about making the transition from employee to business owner. No matter how amazing you think your business idea is you will still need to convince someone to fund it. And the entrepreneurial highway is littered with the wrecks of the dreams of founders who were unable to get anyone with access to the necessary funds to share their enthusiasm for the idea. Add to this the need to replace your 9 to 5 income with a steady coupon and you are creating a situation so stressful its doomed to fail before it has begun.
Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants

It is far more sensible to keep the day job, start small with your business, test your idea and bootstrap. Bootstrapping is the practice of starting a business as cheaply as possible so as to not rely on outside funding. Clearly it is not possible to bootstrap every business idea. If your plan is to start an airline then you’d have to have very deep pockets to go the bootstrapping route. However if your business has very high initial capital requirements it may not be the best place to cut your entrepreneurial teeth. Far better to gain some experience with a business that you can start small and grow. This will help you gain the knowledge and contacts required, and crucially you will also gain some credibility with the VCs if you have a successful track record.

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There is no doubt that starting a new venture while also keeping your old job is a tough slog. You have to sacrifice your evenings and weekends and whatever spare time you have to work on your business. Obviously this means it will take longer for your idea to come to fruition and start gaining traction. After all, there are only so many hours in the day.



“…watch your expenses and cash burn like a hawk…”



One of the most important things in this phase of the business is to watch your expenses and cash burn like a hawk. If you are spending more than you can sustain with the income from your employment the situation will quickly become unsustainable and something will have to give. It is therefore vital that you do all you can to avoid entering into contracts where you cannot control what the final cost will be. Time based professional services such as accountants, lawyers and consultants are often vital at this stage of a business and these costs can be both expensive and difficult to control. This is why LCCS is tailor made for the bootstrapping business founder. Your accounting fees are not only low, they are known up front and fixed and they are spread out over the year. For tax and filing compliance reasons all businesses require accounting services. LCCS makes this one less cost to worry about.

Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants

Not only is LCCS’s monthly subscription model a dream for lean start-up businesses trying to control the purse strings, but the LCCS Live Tax Report does the same thing for your tax bills. When cash-flow is tight the last thing you need is to be hit with an unexpected invoice from HMRC. The LCCS Live Tax Report keeps you fully up-to-date with not only your company’s tax liabilities but also your own. Drawing an income through employment and also from a nascent business can be a minefield come tax time. The LCCS Live Tax Report tells you exactly how much you need to put aside from every pay packet and company drawing. This won’t guarantee that your company is a success, but it will make it much easier to look after the pennies and forecast your cash requirements.

The great thing about keeping your business costs under control and maintaining your income is it gives the rookie entrepreneur the time and space to learn and grow and develop their business idea. Without the pressure of VCs demanding a return or rapidly diminishing cash reserves you have the time to learn from your mistakes, alter your course and eventually find a winning formula.

Ultimately whether your business idea is a roaring success or just a fantastic learning opportunity doesn’t really matter in the end. Very few business owners get everything right the first time but you can never make a success of something you don’t even try. So if you’re thinking of starting a business why not give it a go by starting small, bootstrapping and growing. The worst that could happen is you lose a little money but gain a tonne of experience. And you know what they say, “you only regret the things you don’t do”.

Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants

This article first appeared on the LCCS Blog on 15 February 2021

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When Who Comment
2021-02-16 10:10:46 Shakin Stephen So we need to work a full time job, look after the kids, keep the spouse happy, keep the household running AND launch a business on the side? Sounds easy. Perhaps I'll take up some hobbies and get a life as well!
2021-02-17 12:12:53 LCCS Thanks for your comment Shakin. Nobody said it would be easy! If you are able to commit to it the potential rewards are enormous. If it was easy everyone would do it and the payoff would be diminished.
2021-02-17 14:44:10 Andy Contracting makes it much easier. You get paid more while you are working and between contracts you can concentrate on the new venture.
2021-02-17 14:55:21 Andy Also serial short contracts can help you to see how your skillset can be packaged into a product that is in demand.
2021-02-17 14:59:11 Andy And also helps you build a network to use to sell your new 'product'.
2021-02-21 15:15:48 Shakin Stephen The issue is when you have a nice permanent job with a 3 month notice period. No one wants a contractor who can't start for 3 months. So you have to leave the security of the nice job and hope you can pick up a contract the second your notice period is worked.
2021-02-26 11:35:26 Victoria I handed in my notice period a few years ago and couldn't find a contract when I'd worked it. It was pretty easy to convince my employer I needed to stay a bit longer and a bit longer until I finally found a contract. I think this is why its important not to be too lazy when working your notice. If you work hard all the way through it they'll be happy to keep you on a bit longer.
2021-02-26 13:44:28 SideValve That's not so easy when you get put on gardening leave.
2021-03-01 23:11:18 The Grinch As long as you're not to precious about your rate there is always work in London. If you can't find a job you want just take any job. You can leave it after a week and at least you're still earning.


Further reading

Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants



How to overcome your fears and become your own boss


If you've always wanted to run your own company but don't know how to get started it can be extremely daunting. The good news is it doesn't have to be.

The fear is of losing the stability of a regular 9 to 5 income and of the pressure of pitching your dreams to heartless VC executives with no way back if they can't see your vision.


“…the entrepreneurial highway is littered with the wrecks of the dreams of founders who were unable to get investors to share their enthusiasm…”




The truth is unless you are an experienced entrepreneur or have access to vast cash reserves this is probably an ill-advised way to go about making the transition from employee to business owner. No matter how amazing you think your business idea is you will still need to convince someone to fund it. And the entrepreneurial highway is littered with the wrecks of the dreams of founders who were unable to get anyone with access to the necessary funds to share their enthusiasm for the idea. Add to this the need to replace your 9 to 5 income with a steady coupon and you are creating a situation so stressful its doomed to fail before it has begun.
Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants

It is far more sensible to keep the day job, start small with your business, test your idea and bootstrap. Bootstrapping is the practice of starting a business as cheaply as possible so as to not rely on outside funding. Clearly it is not possible to bootstrap every business idea. If your plan is to start an airline then you’d have to have very deep pockets to go the bootstrapping route. However if your business has very high initial capital requirements it may not be the best place to cut your entrepreneurial teeth. Far better to gain some experience with a business that you can start small and grow. This will help you gain the knowledge and contacts required, and crucially you will also gain some credibility with the VCs if you have a successful track record.

Sign up to our newsletter*

*You can unsubscribe at any time here

**To comment on any of our articles create an account here



Subscribe

Please sign up to our newsletter*

*You can unsubscribe at any time here.

**If you want to comment on any of our articles you will need to create an account here.



There is no doubt that starting a new venture while also keeping your old job is a tough slog. You have to sacrifice your evenings and weekends and whatever spare time you have to work on your business. Obviously this means it will take longer for your idea to come to fruition and start gaining traction. After all, there are only so many hours in the day.



“…watch your expenses and cash burn like a hawk…”



One of the most important things in this phase of the business is to watch your expenses and cash burn like a hawk. If you are spending more than you can sustain with the income from your employment the situation will quickly become unsustainable and something will have to give. It is therefore vital that you do all you can to avoid entering into contracts where you cannot control what the final cost will be. Time based professional services such as accountants, lawyers and consultants are often vital at this stage of a business and these costs can be both expensive and difficult to control. This is why LCCS is tailor made for the bootstrapping business founder. Your accounting fees are not only low, they are known up front and fixed and they are spread out over the year. For tax and filing compliance reasons all businesses require accounting services. LCCS makes this one less cost to worry about.

Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants

Not only is LCCS’s monthly subscription model a dream for lean start-up businesses trying to control the purse strings, but the LCCS Live Tax Report does the same thing for your tax bills. When cash-flow is tight the last thing you need is to be hit with an unexpected invoice from HMRC. The LCCS Live Tax Report keeps you fully up-to-date with not only your company’s tax liabilities but also your own. Drawing an income through employment and also from a nascent business can be a minefield come tax time. The LCCS Live Tax Report tells you exactly how much you need to put aside from every pay packet and company drawing. This won’t guarantee that your company is a success, but it will make it much easier to look after the pennies and forecast your cash requirements.

The great thing about keeping your business costs under control and maintaining your income is it gives the rookie entrepreneur the time and space to learn and grow and develop their business idea. Without the pressure of VCs demanding a return or rapidly diminishing cash reserves you have the time to learn from your mistakes, alter your course and eventually find a winning formula.

Ultimately whether your business idea is a roaring success or just a fantastic learning opportunity doesn’t really matter in the end. Very few business owners get everything right the first time but you can never make a success of something you don’t even try. So if you’re thinking of starting a business why not give it a go by starting small, bootstrapping and growing. The worst that could happen is you lose a little money but gain a tonne of experience. And you know what they say, “you only regret the things you don’t do”.

Limited Company Accounting, Tax, Contractor, UK, VAT, HMRC, IR35, LCCS, LCCS Accounting, chartered accountants, company accounts, limited company accounts, limited company tax, limited company VAT, contracting, limited company for contractors, limited company contracting, limited company tax deductions limited company chartered accountants

This article first appeared on the LCCS Blog on 15 February 2021

Sign In to Comment

When Who Comment
2021-02-16 10:10:46 Shakin Stephen So we need to work a full time job, look after the kids, keep the spouse happy, keep the household running AND launch a business on the side? Sounds easy. Perhaps I'll take up some hobbies and get a life as well!
2021-02-17 12:12:53 LCCS Thanks for your comment Shakin. Nobody said it would be easy! If you are able to commit to it the potential rewards are enormous. If it was easy everyone would do it and the payoff would be diminished.
2021-02-17 14:44:10 Andy Contracting makes it much easier. You get paid more while you are working and between contracts you can concentrate on the new venture.
2021-02-17 14:55:21 Andy Also serial short contracts can help you to see how your skillset can be packaged into a product that is in demand.
2021-02-17 14:59:11 Andy And also helps you build a network to use to sell your new 'product'.
2021-02-21 15:15:48 Shakin Stephen The issue is when you have a nice permanent job with a 3 month notice period. No one wants a contractor who can't start for 3 months. So you have to leave the security of the nice job and hope you can pick up a contract the second your notice period is worked.
2021-02-26 11:35:26 Victoria I handed in my notice period a few years ago and couldn't find a contract when I'd worked it. It was pretty easy to convince my employer I needed to stay a bit longer and a bit longer until I finally found a contract. I think this is why its important not to be too lazy when working your notice. If you work hard all the way through it they'll be happy to keep you on a bit longer.
2021-02-26 13:44:28 SideValve That's not so easy when you get put on gardening leave.
2021-03-01 23:11:18 The Grinch As long as you're not to precious about your rate there is always work in London. If you can't find a job you want just take any job. You can leave it after a week and at least you're still earning.


Further reading