highs and lows when working for yourself

[runnindownadream]

Just that really.

I am looking to set up a business with a friend who is also a (professional) colleague. We would like to ensure we go into it with both eyes open.

We have a list of pros and cons but wondered if perhaps we might have overlooked anything Any experiences greatly received!

Highs:
1)If I dont want the work theres no-one to make me do it
2)Holidays when I want holidays, if I want a day off I take it
3)Its made me grow-up and I feel Im a better colleague now than I used to be
4)Reduced tax and I always like it when I can call my lunch a business expense :D
Lows:
1)Holidays are horrifically expensive and as well as paying for the holiday you lose pay for the time you are there - this impacted slightly on the enjoyment for me.
2)The thought of getting sick is quite scary as no sick pay or other back up
3)No maternity leave and hard to get work while pregnant (in my line of work at least)
4)Inevitably you have to be available for more of your day, rather than walking out and leaving it, but you dont mind as much, so its a pro and a con
5)You have to be organised and disciplined and save for your tax bill

Overall I would say go for it :) My top tip would be to find a good accountant (unless you are accountants!!) - I looked up a list of chartered accountants in my area, rang two or three for a chat and went with my gut instinct. Saved me days of stress when the inland revenue were hounding me for £5000 I didnt owe. Cost £120 a year (I think thats cheap...) and best money I have ever sent. The time it would have taken me to do my tax return I would have wanted more than £120 for.

Make sure you have some written agreement between you - it doesn't have to be a full-blown document written in legalese, but should what each of you is going to put in to the business, what each of you is going to take out and what happens if one of you wants to leave.

Lots of official help from Business Link, there is a topic on Mumsnet for less official help, and you could also look at ukbusinessforums.

Being in a partnership is a little like being in a marriage, but the two partners often have very different agendas. You will spend more time with your business partner than with your actual partner. Divide up the 'business jobs' so one of you chases unpaid debts, another works on cutting supplier costs etc. Both have time set aside to do business jobs within the working week - these can be as important as earning money - I improved my profit by £40,000 last year by working on my costs turnover remained the same.
My partner and I are 50:50 partners, but we agreed at the start for the first 2.5years he would be the managing partner with a deciding vote and then the second 2.5years would be me (he retires this year hence this decision).
My accountant is a lady who is a similar age to me so we are likely to work together through out our business lives and build a relationship this is really important to me.
There will be days when you have to drag yourself out of bed/the house and go to work because there is no one else.

Thank you for your replies I will definately check out the links.

its something we've talked about for years and now decided to go for it. Bit scary but exciting at the same time. I'm feeling all enthused today and bought the website address we wanted!

I would echo the advice to find a good accountant, they can save you a fortune. £120 is a cheap fee though, expect more like £200-300 each. Make sure you get a chartered accountant, look at the institute of chartered accountant's website ICAEW.com to find one. Anyone can call themselves an 'accountant' without any qualifications so don't get caught out.

I would also strongly advise a partnership agreement as it will protect you both if it does go wrong. Chances are it will be fine but it is insurance in case it isn't.

Lastly I love working for myself so Good Luck!