EP #24 – Here’s the truth of going self-employed w/ Chirag Panchal
Overview
In Episode 24 of the FieldRocket Podcast, host Tulloch Priest speaks with business owner Chirag Panchal about the highs and lows of being a sole trader.
From preparing financially for self-employment to managing your workload and staying organised, Chirag shares invaluable advice from his own experience.
Highlights
The flexibility and freedom of self-employment
- (1:30) Being self-employed gives you flexibility, but it doesn’t necessarily give you complete freedom. You often find yourself working more hours.
- (2:50) For Chirag, being in control of his day is important enough that he wouldn’t go back to being employed.
- (3:30) Being employed and having a company dictate your schedule can mean things are often too hectic or too slow. Going self-employed lets you take things at your own pace.
- (4:45) It’s easy to overload yourself with work, but it’s important to leave some flexibility in your schedule. In the busy period, there are always going to be emergency calls.
What to consider before starting your own business
- (8:00) When you’re going self-employed, you need to remember all the hidden costs. Holidays and sick days become unpaid leave, and you’ve got to save for tax.
- (8:50) Hiring staff is a step you need to feel ready for, and not something to rush into.
- (10:30) Chirag never thought he would go self-employed when he was employed. But it got to the point where he was getting more private work, and the opportunity presented itself.
- (12:15) Growing your business means coming off the tools. For Chirag, this would be the hardest part of growing the business.
Chirag’s tips
- (14:00) Save at least 3 months of wages before making the leap into self-employment as a safety net.
- (14:45) Look at getting yourself a van and your own set of tools too, as well as all the other tasks you’ll need to start doing.
- (16:30) Set up a separate company bank account to help with tax and all company expenses.
- (17:20) It’s much better to slowly transition from employed to self-employed – so there’s less to worry about and you can hit the ground running with work already lined up.
- (19:20) If you’re focusing on reactive, short-term work like servicing and breakdowns, don’t worry if you’re not fully booked up for weeks in advance.
- (19:45) Chirag requests payment as soon as the job is finished – or a 50% deposit on larger jobs – to keep a good cash flow.
- (21:20) Going VAT registered has given Chirag’s customers more confidence in him, and the price increase on smaller jobs has been negligible.