Starting your own business and leaving the safety of a PAYE role can be a scary choice; if you feel like this, you are definitely not alone. Largely, it's the fear of the unknown. Will I get enough clients? Will I earn enough to get by? Will I make a profit? When do I pay my tax? To try and make it a little less frightening, I've compiled a list of the types of things to expect in your first year.
1) Instability
You'll find your first year consists of many hills, maybe even a mountain or two. It will feel quite up and down, and that's okay. If you go into this knowing it will take some time to settle, it will likely be easier to weather that storm. While you're going through it, try to notice patterns that might come up, like when you're busy and when you're quiet. For example, you might find that you have a flurry of enquiries after Christmas. September can often be a reset time of year when they may increase as well, and you'll most likely find August is like tumbleweed (which is actually great because it means you can take a holiday when the weather is good!).
2) Feeling like a lot of hard work
More than any subsequent year, the first year will take more admin time than you think. You'll need to set up a lot of documents. Think counselling agreements, maybe invoices if you're working with EAPs, privacy policies, insurance, perhaps a website, directories... My advice? Don't try and do it all at once. Keep it simple - you could start working only online, advertise with one directory, choose your business insurance, register with the ICO, and set up as a sole trader - it suddenly doesn't sound so much! Then, you can layer in more when you're ready and have a quiet period (see point 1 above).
3) Imposter syndrome
If there's one thing I would put money on, you will feel like an imposter at least once in the first 12 months. Everything is new, and when everything is new, you often feel like you don't belong. Which is where your old friend imposter pops up. Whether it's posting on social media, showing up to a networking event, or having your first private client arrive for their first session with you (even though you've got a hundred hours of placement clients under your belt, this one will feel like the first - believe me!).
If you can expect imposter syndrome to happen and know that it will be there for a while on and off, maybe even embrace it for the journey, you'll find that first year a lot easier to manage.
4) It's not working!
I cannot tell you how often this thought will flash across your head in the first year. You'll have days where you wake up thinking what am I doing? What's this all for? How long does it take? And the truth is you need to find a bit of grit. Some smelly determination that it's going to be worth it. No one else is going to give you that; you need to find it within you, I'm afraid. Having a good support network around you and using it would be good. Maybe a colleague is doing something similar (although, be careful with that one - see point 7 below). It took me less than a year to consider this to be 'working'. In fact, if you'd asked me by month three, I would have been fairly confident.
5) Stay flexible, not rigid
Be prepared to tweak. A lot. Tweak your pricing, payment terms, social media platforms, and directory profiles. Keep doing this until you find your sweet spot, where it feels comfortable and worthwhile and seems to work (see point 4). And if you can throw some analysis in there, that would be amazing. For example, note each enquiry you receive and where it came from, then keep an eye on your conversion to a client and how long that client remained with you. It's all beneficial information. It will help you understand where to spend your time on marketing, for example. I've just looked back over my client success rate over the first year, and it has built pretty consistently at one client a month from my website, word of mouth, and directory. By far, the best marketing tool I have is my network, so I spend time nourishing that. And my conversion rate of enquiry to client is about 95%. Within my first year, I also increased my price, and no one batted an eyelid. I have since increased it again, but only for new clients I'm taking on.
6) Keep showing up consistently
This is one that I need to heed my own advice as I can be inconsistent in my social media! One thing I am consistent with is showing up daily. Every weekday, whether I have a client or not, I sit down at my desk - there is ALWAYS stuff to do. Another blog post to write, more notes to write up, more tweaks to be made. Make it non-negotiable. Show up every day and touch your business in some way. You will want to spend as much time on your business as you are doing in your business (i.e. seeing clients) - say what?! Yup.
7) Keep an eye on your competitors (but not too much)
Look around and ask yourself things like, what is working for them? Where are they advertising? How much are they charging? What can I learn from them? If you can remove the emotion around 'why not me?' and put yourself in a learning state, you will find it far more helpful moving forward. Stay curious.
So. In summary. Your first year will be quite up and down; expect it, and it won't surprise you. It will also be worthwhile. I no longer have a commute and no travel costs. I walk my dogs in the middle of the day with a friend if I want, do daily yoga, and finish my work day by collecting my kids from school. The trade-off is immense. Could you give it a year and see where you're at? Go into it with an open mind, know it will take twelve months to settle a little, and remember that not all of it is down to you, nor in your control.
Come back in twelve months and let me know where you're at. In the meantime you can check out some videos about other things to consider when setting up your private practice here.
Jill x
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