Employee vs Employer? Things I have learned from being my own boss
I set up my business in May 2015 so have been self-employed for over 7 years now.
I thought it might be interesting to share some of the journey I/we have been on in that time, in case any of you are contemplating doing the same. Some insight into the things I would never have thought of – that might be useful for you!
People always say starting out on your own is a real journey. And BOY is that the truth.
I started late – I was already in my late 30s by the time I felt ready. I am not a natural entrepreneur – I was not born to run off on my own and be a rainmaker. I took the time to master my craft, work my way up slowly, learn all I could. I had almost 20 years’ experience in recruiting before I started my own enterprise. And even then it wasn’t really ‘planned’ – it just sort of came about.
When I first decided to go it alone I thought I was taking the path of least resistance. It seemed like the easy option.
It was not even a conscious choice to get going by myself. The universe led me to a point where I found myself at a crossroads. To carry on as an employee and start a new job in a recruitment firm, or to go it alone. My thought process was ‘I don’t want to do what someone else tells me to anymore’. I know how to recruit, have a niche I am very comfortable and well connected in, and have lived through many things that can go wrong or right in the recruitment process. So maybe I am well enough equipped to do so.
I didn’t want to wear a suit, I didn’t want to have to hit KPIs and I didn’t want to work with people who didn’t inspire me to do better anymore. I also didn’t want to line other people’s pockets with my successes anymore.
So – the decision was easy. Off I popped to find out how one sets about starting a business.
The path has been one of mighty twists and turns and learning experiences. And a lot of grey hair. But with the lows and the lessons come the rewards and the successes. It is finally (I hope) starting to pay off…
A few friends told me at the get go that I had a lot to learn and that the road would be a bumpy one but I thought I knew better and all would be fine. I made some great choices – but also some bad decisions, and will undoubtedly make more as the years unfurl ahead of us.
Here are some of the key lessons I learned…
Don’t solely employ your mates
MANY people warned me against hiring friends, but I would not listen. I was convinced that working with people you are socially compatible with was the best way forward. So far I have hired 3 friends, and fallen out with all of them. Thankfully the two most important ones made their way back into my life (it took a long time for wounds to heal) - but there was also a permanent casualty. I am not sure what it is, I think something about the balance shift between being mates and then one of you being the other’s boss, and perhaps people thinking that working for a mate could be an easy option and not recognising it as a real job with a real salary and real expectations. I am not saying I would never do this again (still not learning lessons, haha!) but I would consider it MUCH more carefully in the future. ** Side note – I also employed three family members, and they worked out great, so it is just friends that seem to have these issues!
Get everything set up before you go live if you can
I just sort of started recruiting - but was taken far off focus by having to do things like register the company, find accountants, set up Terms of Business, write business plans, sort IT systems, raise funding etc. If you have the fortune to have all these things in place before you set off down the ski slope, do so!
Have as much in the treasury as you possibly can
Some are fortunate enough to set up businesses with financial backing right up front – whether personal savings, investment from personal or professional circles, or by raising capital through other means. I did not. I just tried to make things work as I went along. To a certain extent, this has worked out – business is booming and the future is looking bright. But in those first few years, (and also the last few years) – when the business account is empty and one is hurtling towards payday – have been the most stressful times of my life. You know everyone relies on you to pay salaries each month so they can pay their mortgage/rent etc. There is no one you can turn to as the buck stops with you. There is no escalation and/or burying your head in the sand. Papering over those cash flow cracks has been the hardest thing of all in this journey. BUT – thankfully – it has all worked out and I am optimistic I can avoid this situation coming again. Although no one banked on the pandemic so… Who knows?
Spend time and effort on hiring
5. This ties in with not hiring your mates I guess but once I moved on from that, I hired a few more who did not work out. My bad decisions were based on business needs and also gut feeling. I have learned that it is the wrong step to take ‘Someone rather than no one’ and that one should interview properly, take references and be as rigorous as it is possible to be in making sure a rounded, diligently researched decision is taken. Take your time over it rather than just hire someone to fill a spot.
There is a part of me that – if I found myself with the same decision all over again but armed with a crystal ball – would run a mile from facing all these challenges. However, having overcome them all (so far at least) and looking at them all in the rear view mirror, I wouldn’t change a thing. All our experiences shape who we are and (again, so far) we have made it!
Don’t sell out!
4. I had a Private Equity company interested in buying me and the business a year or so ago. It was the tail end of the pandemic’s negative impact and I was desperate for some help to avoid the sleepless nights before each payday. Carrying that responsibility when the chips are down is a big burden. Someone showing an interest in easing that burden and backing payroll was something I couldn’t help be tempted by. But I could see hope on the horizon and knew that I backed myself to be able to perform and turn things around. So I avoided short-term gain and long-term loss by weathering the storm. I begged and borrowed and swung like Tarzan from one crisis/solution to another until finally, I made it out the other side.
Happy to discuss any of this with you if you are considering embarking on a similar journey. Get in touch to bounce ideas off each other!
What goes around, comes around. Right?
Have a great week everyone!
