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Am I being stupid/crazy to shut down my own business to become a SAHM?!

13 replies

LittleSpade · 15/02/2012 18:33

Following redundancy (company went into administration and closed) in December 2009 I set up my own environmental consultancy as a limited company. I'd never had any great aspirations to run my own business but was encouraged to take the opportunity to try it.

In my first year of trading it was all very new and scary and I didn't have much time to evaluate whether I enjoyed it or how well it was going . But I have now been up and running for 2 years and 1 month and since the later part of last year have been increasingly unhappy and uncertain about what to do.

First year turnover was £60,000, second year turnover was £134,000. First year net profits were approx £2,000 and second year profits approx £30,000. I took an income of £10,000 (after tax) in the first year and £26,000 in the second year so by the second year my 'salary' is probably equivalent to that which i was previously on in employment which was £31,000. The point of this is that I seem to be making a success of the business but not making mega-money either especially given that I now work longer hours than the 9 to 5.30pm Mon-Fri I was doing previously.

The problem is everyone else sees my success and congratulates me and is encouraging me to expand and take people on. Whereas I am finding the pressure, stress and responsibility of running my own company, keeping up with client demands and workload and keeping up-to-date with legislation all too much. I am also scared to take someone on as I have no experience of people management and wouldn't class it as a strength of mine. Also I couldn't even then totally leave them to run it for me when I went on maternity leave. I am stressed and unhappy. I also don't have enough free time to keep my house in the state i want it or see my friends often enough.

I am currently 10 weeks pregnant with DC1 and have no idea what to do. My instinct is to give up the business and sooner rather than later so I have a chance to relax, be happy and sort my house out before the baby arrives. But I'm worried about how other people will judge me and what I will do longer term. Having not tried it I don't know if I'll enjoy being a stay at home mum either and I worry that much further down the line once DC are at school I may be bored and lonely and regret losing touch with the workplace. I also worry what influence me not working may have on my DC as my own mum didn't work (due to disability). But I also see it as a future opportunity to try something different (as I've never loved my job).

Finances don't really influence my decision as DH earns enough to cover our outgoings and most luxuries although we would have to save harder for things like holidays and home improvements. The only concern I have in that regard is pensions. DH would love me to give up work and be happier with the added bonus he'd no longer have to do housework but he seems to be the only one who is supporting me!

Would I be crazy/stupid to give the business up? Any thoughts, comments, advice much appreciated!

OP posts:
Nagoo · 15/02/2012 18:43

I find the first year really really hard.

Because I'm not working and it's pretty boring. As soon as I go back after mat leave I am much happier.

That said, I work silly hours around the DCs, so I see the baby in the day (she does 2 days in nursery) and can do school pick ups etc.

How far could you make your job fit your family?

TBH it sounds like you don't like this job much. Is it a business you could sell? [knows fuck all about business emoticon]

DialMforMummy · 15/02/2012 19:00

I was bored stiff on maternity leave. I missed the stimulation from work. Maybe you could give up your business and find another job once you are happy for your DC to go to nursery or with a CM.

Saffra · 16/02/2012 20:03

As you're a limited company and technically an employee, you may be entitled to SMP. So, can you maybe have 6/9/12 months off - not taking on any client work in this time - and see how you feel? In many ways, it would be prudent to somehow keep your hand in so that your options are kept open in the future. You could find that being a SAHM is not for you. Good to have options, retain some independence and think long-term too.

I fell pregnant in yr 2 of trading of my business. While I LOVE having time with my DD (she's 4.5months), I enjoy the sense of opportunity and challenges my business gives to me. At the same time, my DD has made me less work obsessed, which is good.

Could you do the work PT? Is it flexible? Do you like your clients? Can you just cherry-pick the projects you want?

Saffra · 16/02/2012 20:11

Oh... And congratulations!

Btw, I found antenatal yoga fantastic for destressing during pregnancy. That hour was the only time in the week that I mentally switched off from work and felt really tuned in to the pregnancy.

prh47bridge · 16/02/2012 22:16

If you really feel you can't carry on with the business I would seriously consider selling it. If those profits are after you took your salary it must be worth something. It could be that the business is critically dependent on you in which case that would reduce its value because of the risk the purchaser was taking, although that could possibly be mitigated to some extent by you continuing to work for the new owner for a while. But getting something for the business must be better than simply closing it down.

LittleSpade · 20/02/2012 18:41

Thanks guys. I guess you don't know till you try it but i don't think i'd be bored on maternity leave as I would be keen to get involved with babies/kids clubs, visit my friends, do all the housework and spend more time on my garden/allotment (baby permitting). I also currently work alone from home most of the time so don't really have any colleague interaction that i could miss.

Thanks saffra for your suggestion - I am definately going to speak to my accountant about the legalities of ceasing trading for 9 - 12 months whilst taking statutory maternity pay out the company and giving myself more thinking time.

I do like my clients and I could just work for a few select existing clients but I find saying 'no' when fee proposal requests come in really hard - I feel guilty for letting people down and i worry that I may need their business in the future. I would definately need to say no to work, especially from new clients though, if I was to work anything less than full-time on my own.

OP posts:
RobynLou · 20/02/2012 18:46

just don't let DH think you'll take over ALL the housework - babies and children create work and limit your cearing up time severely!

Saffra · 22/02/2012 13:09

I do some baby groups and coffee meet ups etc - they're really lovely and i really enjoy them but I couldn't fill the week with them. Taking a bit of time out has been brilliant for me personally. I think I have a nice balance now whereas, in retrospect, I think I did work too much before. Like you, I was too busy working to think if I was enjoying it or not. anyway, I'm now a lot more selective about the work that I do. Plus, now, having a few hours by myself to work is 'me time' that I definitely need. My DD is so fab and i totally adore her but I need a break (to work!) sometimes and feel like I'm back in control for a bit!

northerngirl41 · 22/02/2012 21:20

The other thing to think about if you can't outsource your environmental work is to outsource other things - stuff like the admin or your housework based on your business? Not only would that free up more of your time, but it would also mean that your business was worth more - right now it sounds like you are the business, rather than it being able to perform without you. It's worthless as an entity without you essentially.

As for filling your days with baby groups etc. - have you been to any? Seriously, they are the most mind numbing things ever... Everyone sits round talking about poo and how to bleach curtains.... Yawn!!!

LittleSpade · 23/02/2012 10:59

Thanks saffra, it sounds like you've found a good balance. Can I ask what business sector you're in? And how many days/hours a week you tend to work now you have your DD?

northerngirl41 no i haven't been to any baby groups myself yet as am only pg with my 1st but other friends and people on here seem to enjoy them up to a point. I also love my gardening so am hoping for a bit more time for that.

I know what you're saying about my business being worthless without me but I think software and clients do add some value and I am aware its something that may need to be addressed longer term, although its not something that bothers me too much - may try merging with environmental consultants i know with small businesses in other fields in the future.

OP posts:
Saffra · 23/02/2012 21:04

I wrote the longest essay... And managed to lose it. Aargh!

Anyway, shorter version:

I have an online boutique - which is not quite the automated operation that many might believe! Certainly not with my type of product/market in any case. Fortunately, last year (second yr of trading) I was able to grow the business to afford to take on an employee. She started the month before my due date and now handles all the customer contact and order processing. That means my work isn't time sensitive. I work during nap times, when I have childcare (my mum) and in the evening. During a productive day, I manage maybe 6 hours. On some days, I only do maybe half an hour - like today when I wanted to take advantage of the nice weather and also meet with mum friends. But, I'm constantly checking my emails and writing to-do lists.

A complete sanity saver for me has been ensuring that I'm not the first point of contact. So, if you don't use one already, perhaps a virtual PA would be a good idea? Agree about outsourcing too - for both the business and home. Although I enjoyed nesting in my pregnancy, I don't like cleaning very much now!

A lot of things will depend on what your baby's like with sleeping, illnesses, whether happy to be out down, etc. If you do want to continue the business, try and keep expectations low for a while so that you can have a chance to adjust to your new life.

Anyway, whatever your plans and however prepared you are, prepare to feel different when your baby arrives!

PessimisticMissPiggy · 23/02/2012 21:11

Can you find a collegue to buy 2/3 of the business and continue to trade then you keep you hand in doing 12 hours a week?

peasizedbladder · 24/02/2012 17:37

Im reading this post with interest, I work as an env consultant for a large consultancy and currently pregnant with no 3 and seriously considering my options for returning to work. It sounds from the figures that you have a product as opposed to just selling your time. So I would seriously consider taking someone on to keep it going. You really don't know how you will feel about parenthood until you get there! and I am sure you will be able to draw maternity pay and dividends next year (I'm talking to our accountants at the moment about me doing the same from my husbands company).

I have loved being off work for a year with my first two, but I have always known that I have a job to go back to. I don't know how I will feel when I go on maternity leave this time as I don't intend to go back. I do like the mental stimulation of work and the break from the baby talk.

I find consultancy v hard going, with numerous unpaid hours each evening so i understand fully where you are at. That is definately made worse by working only 3 days a week and juggling the kids - sorry I am probably not painting a rosy picture for you!!

I keep trying to think of a business idea to set up on my own but haven't managed it! If I could find a job that was interesting, paid enough to more than cover child care and stopped at 5pm I would jump at the opportunity. But wouldn't we all... Could that ever be possible with your current business if you brought the right person in?

If you are only 10 weeks now, def don't rush into any decisions right now. The first 12 weeks have always made me sooo tired. I fully support the idea above of paying for help cleaning etc.

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