Finally on my own or what?

[wyseq]

Hi Everyone,

I've been a member of this forum for 11 years, mostly reading and learning from all of you.

On Monday, 1st July, I lost a job I loved and excelled at. The reason? Believe it or not, I saved the company 25% (or £20k) on shipping costs while on holiday. Despite this achievement, I was let go. Thankfully, I have a three-month redundancy package to tide me over until I find another job.

I've always had a desire to be my own boss, to have ultimate responsibility and control. A SWOT analysis of my past experiences reveals extensive expertise in logistics and supply chain management. I can handle sourcing, moving goods, customs, IT, people management, business, and law. I hold a Level 5 Operations Management in Supply Chain certificate, 10 years of transport management and possess various other skills. Despite being a valuable employee with a 99% attendance record and 99% on-time-in-full task delivery, I've never had the courage to venture out on my own.

With a family to support, the pressure to find a new job is intense. I feel like the perfect employee, but I only receive a salary and the occasional "great job!" in return.

Now, I turn to all of you who have started your own businesses. How did you overcome the anxiety and fear of striking out on your own? How did you silence the doubts in your head? How did you land your first customer, and what challenges did you face in closing that first deal?

Here are some details about my current situation:

• I have a registered (2013) business with a bank account
• I can build a simple website.
• I have strong internet research skills.

Thank you for any advice or insights you can provide.
And apologies for this "cry for help" post but I'm bit lost and don't know which way to go.

 

[Porky]

Not sure from your post what business you are actually starting up, i'm assuming its a logistics company? as that's your background?

If so, you will have evident costs associated with start up and hence need to put a robust business plan together to establish your initial capital requirements. I have no specific experience of logistics but due to the extensive competition in this sector my understanding is that margins are fairly tight and there is a high industry sector churn rate of businesses starting and businesses closing.

If the firm you just left is a larger company, a challenge maybe why a company should use your firm as a start up over the larger more established firm. Cost is not an answer. You need a strong USP as to why they would decide to appoint you over the current supplier.

My feeling is that due to your first comment "With a family to support, the pressure to find a new job is intense" you might not be understanding that you could initially be working a lot of hours for very little income to get established hence i refer you back to having a robust business plan and whatever capital requirement you arrive at double it as normally your expectations on cost and expectations on orders won wont be realistic until you know what you are doing.

A better idea might be for you to get re-employed in the sector to secure your income and then start your business part time, build it up gradual until you are better placed to move across full time.

Unfortunately, a lot of employees can think "i only get a salary and no thanks" but a salary is a constant, the business has to secure a lot of business revenue, has a lot of costs for sales and overheads before it can pay you that salary. Working for yourself offers no such guarantee you also have credit control to consider, balancing quoting terms, providing the service and collecting payments and balancing your time effectively if you start up as a sole trader.

You could get a more detailed response here if you can provide more detail about what exactly you intend to do - what is your business exactly but i wish you well with whatever options you decide to make all the same, its tough times for all currently to be honest and there are no "free golden eggs" out there, you will have to seriously work hard to get to where you want to be.

Good luck

 

[MOIC]

My advice is to stay within your sector, as an employee, but with a company that will appreciate your skills, experience, what you can offer, and can perhaps offer a commission bonus, based on new business you can bring in.

Have you asked your existing employer for a raise to match the experience and business you bring in?

Starting on your own in the logistics business is about the contacts you have (shipping lines, agents, couriers) as well as customers you can build. Realistically this can take 2+ years to build up, unless you're lucky and can get a contract with a large company to act as their logistics company.

But would they want to use a new company?

Companies use logistics for many reasons, including some of the following:

1. Service and communication.
2. Multi-level shipping options by sea, air, road and rail.
3. Streamlining door2door from your supplier to your warehouse.
4. Competitive pricing.
5. Credit facilities.
6. Agent offices in countries their products are being shipped from.
7. All-risks insurance.
8. Certificates within the logistic industry proving their experience and professionality.
9. References.
10. A team they can work with.

You'll be aware of what's required and will not be easy as a start up to reach and achieve all the above.

Gather more information and plan at least 1 year ahead so you can get as many pieces of the jigsaw together which will help kick-start your new business, if you decide that's the way forward to provide for your family.

Take into account, you'll have much more pressure to deal with.

Good luck in what you decide to do.

 

[WaveJumper]

A short reply - get some income coming in now all be it part time or full time three months money will not go far. Money coming in will take pressure off you looking to build your own business / contacts etc

 

[Mark T Jones]

My first thought was the obvious one - to set yourself up as a consultant in the supply chain, though admittedly I have absolutely no experience in this area.

@MOIC Would be my go-to for advice.

Generally I'd agree with others. Being self employed is neither easy nor reliable money - particularly in the early stages.in reality, even later on many business owners earn less in real terms than they would in employment (taking into account sick leave, pensions, holidays and various other benefits)

Let's call it a lifestyle choice

 

[Socio South West]

I have been freelancing mainly in the logistics/supply chain sector for nearly ten years, and have never been short of opportunities arising from the freelancing sites. Like you, I have a selection of other skills and experiences that have occasionally proven extremely handy.

Look beyond your skill set, and don't be afraid of the occasional vertical learning curve.

You have DM.

 

[Daybooks]

Prepare a comprehensive business plan for your chosen venture. This must cover financial and non financial events. It sounds like you already have the expertise for much of the non financial events.

The financial aspects will give you insights as to what you need to achieve in terms of turnover and possible resultant profitability as well as the crucial funding that will be needed.

You can then determine whether it is feasible and crucially what you have to achieve to make it work.

Good luck.

 

[tony84]

I went self employed before I had a family. I took the leap knowing if it failed I would probably just go and get a job (I was young).

I dont think I would do it now... It was the best decision I made and 12 years down the line it is looking good. But I have a bigger mortgage, I have a daughter.... Best of luck whatever you decide. It takes a massive amount of strength to go self employed and with a family in the background even more so.

 

[Mark James]

If your not prepared to risk it and lose everything then don’t do it.

 

[wyseq]

thank you, appreciate your input in this personal case. I am taking all words and have a deep think about this now.

 

[HGCourier]

Hi Everyone,

I've been a member of this forum for 11 years, mostly reading and learning from all of you.

On Monday, 1st July, I lost a job I loved and excelled at. The reason? Believe it or not, I saved the company 25% (or £20k) on shipping costs while on holiday. Despite this achievement, I was let go. Thankfully, I have a three-month redundancy package to tide me over until I find another job.

I've always had a desire to be my own boss, to have ultimate responsibility and control. A SWOT analysis of my past experiences reveals extensive expertise in logistics and supply chain management. I can handle sourcing, moving goods, customs, IT, people management, business, and law. I hold a Level 5 Operations Management in Supply Chain certificate, 10 years of transport management and possess various other skills. Despite being a valuable employee with a 99% attendance record and 99% on-time-in-full task delivery, I've never had the courage to venture out on my own.

With a family to support, the pressure to find a new job is intense. I feel like the perfect employee, but I only receive a salary and the occasional "great job!" in return.

Now, I turn to all of you who have started your own businesses. How did you overcome the anxiety and fear of striking out on your own? How did you silence the doubts in your head? How did you land your first customer, and what challenges did you face in closing that first deal?

Here are some details about my current situation:

• I have a registered (2013) business with a bank account
• I can build a simple website.
• I have strong internet research skills.

Thank you for any advice or insights you can provide.
And apologies for this "cry for help" post but I'm bit lost and don't know which way to go.

I have a Courier company, and believe me it's hard, If you have a family to support and need to draw an income from day 1, do not go into logistics. Margins are tight, trying to onboard new customers very difficult indeed and the competition will always undercut you.
My start up costs are in the region of £30,000 and I am still on a low wage.
Do you have an extensive diary of contacts you can go to who will give you work?
Even if you don't intend driving yourself then you would need Insurance and a membership to CX exchange to source drivers, circa £6,000 up front.
Then you are going to need a bank roll to pay drivers. Companies normally pay their invoices 30 days from end of month.
Your going to need logistics software and accountancy software, another £2,000 per year.
Then you have website and SEO costs.
It looks bleak doesn't it? It is most certainly not for the faint hearted that's for sure.
But again I go back to "Do you have a diary or black book" of companies you can go direct to, who will give you work - if so then half the battle is done.