Professional March 2021

PERSONAL DEVELOPMENT

Starting your own business

Eira Hammond ChFCIPPdip, independent consultant and payroll headhunter, Eira Connect, part of Eira Consulting Limited, addresses the issues of whether being a payroll consultant is right for you

C onsulting has changed a bit over the last twelve months or so, especially with the delayed introduction of IR35 in the private sector. It is assumed that consultancy referred to in this article is outside scope of IR35. There are loads of myths surrounding consultants and many of these statements have made me smile over the years, including the following which I’ll return to later: ● consulting is what to do if you’re out of work ● consultants get to keep all the £s they make ● consulting is glamorous ● consultants go to exotic places ● consultants are their own bosses ● consultants have no personal life. Most of the above are partly true, but before you consider embarking on a career as a consultant it’s only fair you see the full picture. Why be a consultant? You could be consulting for a large organisation and want to start your own business or maybe you are a bit of an entrepreneur and want to start your own consultancy practice? Perhaps you’ve retired and want to continue to offer your

payroll expertise in a part-time capacity. It could be that you are currently looking for your perfect permanent role, but until that comes along you’ve decided to do some interim work. Another way of trying out consultancy is by doing some small projects in the evening or during your weekends to earn some extra money. Whatever the reason, you must always remember that as well as doing the consultancy projects, you will also have to administer your business, including sales, payroll, marketing, email communication, accounts and all the other tasks that are involved when running your own business. Is consulting right for you? Once you have your goal, then you need to really look at your skills and experience and consider whether consultancy is right for you. Consider the following. ● Do you have the entrepreneurial spirit? ● Are you self-disciplined and can maintain focus? ● Are you astute in business issues? ● Are you willing to work hard and make sacrifices for your business? ● Have you got good communication skills: listening, writing and speaking well? ● Are you convincing, confident, influential, credible?

● Do you have good salesmanship, and are you a good negotiator? ● Are you analytical, and quick to frame issues? ● Are you good at facilitating meetings? ● Can you bring/add/generate value, rather than just perform tasks? ● Are you diplomatic? ● Do you have a sense of humour? If you can answer ‘yes’ to all of these questions – and you are self-assertive – you may be ready! But, are you ready financially? This is one of the difficult things you need to be brutally honest about. How long could you make it with no income? Do you have enough savings to live for six months or a year? Could you manage when there are dry spells and no work? Are you deeply in debt now? How is your credit? What if you get sick? These are really important but very difficult questions to answer, so it’s crucial to be honest with yourself and be realistic. Getting started There are a few options in the UK when starting your own business including being a sole trader, partnership or having your own limited company. The GOV.UK site has some valuable resources to help you choose which option is best for you, so I’m not going to recommend as it really does depend on a lot of factors. Start with a business plan which

...loads of myths surrounding consultants...

| Professional in Payroll, Pensions and Reward | March 2021 | Issue 68 16

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