and put money aside for tax.

My lessons learnt:

- Don't skimp on lawyers - good enough lawyers just don't think and notice stuff
- Outsource as much as you can - bookkeeping, payroll etc
- Take time out - to strategise (eg who are all the potential customers, how can I use my network etc) but also to smell the daisies and not get too bogged down in day-to-day execution
- Don't trust or rely on anyone. Ever. (see http://www.independent.co.uk/news/business/news/woolworths-set-to-return... for a recent personal illustration)
- Try and build a 'review panel' of people who'll review drafts of stuff or give you feedback/input on things
- Watch your cashflow and don't be afraid to chase late payers
- Sort your IT out early on so it doesn't let you down and/or ever become an excuse
- Trust your instinct and back yourself to the hilt
- It can be bloody lonely for a bloody long time. Find networks you can tap into and read books by others who have relevant experience

Good luck!

for people that start up a business.

So all I can say is - go for it - keep going when it gets tough - focus on the essentials - and wish you the very best.

Stimpys views on Tax and VAT. HMRC are a dogged bunch of sods, and they NEVER go away. Open up a second bank account and put so much away every couple of weeks or so to cover these bills. Never EVER be late submitting your tax or VAT returns, or indeed your payments. If you are you will be tagged by HMRC as a "problem". On one occassion my accountant had a heart attack whilst doing my VAT return, and it was submitted late.... I was fined £200, and there is no right of appeal. On the subject of accountants, get yourself a good one, but do the necessary basic bookwork yourself..a good accountant is too expensive to be doing mundane stuff which you can easy do yourself.. I recommend SAGE as a good, relatively cheap accounting system.Do not give extended credit to anyone, and, above all TRUST NO ONE!

It will take twice as long as you think and cost twice as much.
There are "angels" out there and their advice is worth heeding.
Cultivate direct relationships with your customers.
Pay yourself next to nothing.
All the new channels of communication are rewarding but they take massive amounts of time.
Get up earlier in the morning than your competitors.
Oh, and all the stuff about VAT and the Revenue is true. These people are remorseless.
At some point within the first year you will be royally shafted by somebody big and powerful.
Competitors will spread poison about you.
Everybody thinks you're trying to swindle them. It's a British thing.

think again and only do it if you absolutely cannot outsource it and it's a core activity. There are very few laws that make it difficult to employ someone, but dozens to stop you terminating them. Rightly so, but it's a heck of a burden if it doesn't work out.

I ran my own business for 18 months - computer systems contracting.

I paid something like £75 a month to a company who advised on and ran all the company business side - maximising my return, paying all taxes, completing the accounts, etc. If you need someone to do that, drop me a mail and I'll pass you on their details.

All the very best for it!

it seems, why not book on one of the free workshops run by HMRC about Becoming Self Employed, Starting a Limited Company and many exciting others. They'll tell you all about tax and National Insurance aspects of running a business. Dull, but you need to know it. Do it sooner rather than later as there are changes to the service coming in April. Phone 0845 6032691 or online and book.

Buy lots of tinned foods in advance so that you don't go hungry if it all goes wrong.

I'm only a freelance.

First year, thought I was doing brilliant.

Second year? First tax bill came. Had to cover the previous year and the year ahead.

Been paying catch up ever since.

Hang onto every damn penny, unless you know its tax deductible.

So don't skimp on the accountants.

That is all.

...don't know about all the TV shows about Rouge traders - there should be ones about Rogue Customers. When working with a friend I priced up a job in his absence. On his return told him we'd got the job - "Are you sure they understood the costs??" "Yeah no problem thought we were a bit pricey compared to other quotes but he liked our honesty and approach." Just started when my mate tells me to stop and pack up. To the customer "did my friend tell you what we charged" "Yes" "Did you tell him it was fine?" "Yes" "Are You going to pay it? "No" - luckily we'd not used any materials by that time.

are ruthless bastards but should you have a dispute with them, never accept their first demand. My brother allegedly owed them £14k in past due VAT - he argued the toss and it came down to £5k. Just like banks they can be wrong.

It'll be a surefire winner.

Must echo the above about opening a separate bank account...and keep a record of all expenses. All of them. Every single one. And the receipts.
If you've already got a contract signed see Occam's point about lawyers.

but just in case

- a few self employed people I know draw no salary but work as directors of their business and take a dividend instead. More tax effective I'm told, and it's possible to include FPO's

- if you haven't already got one, try and find some self employed people who can recommend a good accountant who specialises in small business support. It's worth paying a little extra.

- sort out the IT stuff as soon as you can - a website, business email address etc. It's esy to do but surprising how many sole traders still have Hotmail addresses.

- newtworking is reckoned to be a critical source of new business. Guys like Will Kintish run courses that have some useful tips

I thought about going self employed but didn't have the nerve. Really hope it goes well, and let us know how you get on.

As in big business (I used to work for a big City law firm), so in the micro-world of self-employment: you'll get more work through existing customers/clients than you will through advertising, putting cards and fliers up, etc etc. If you're good, people will recommend you to others - I bet you've done that when you've found a good electrician/plumber. Conversely, once you have some customers, you'd better give them a good service, as people will generally complain more about bad service than they will eulogise about good service.

Tell us what you do - you never know, someone on the board might just need an Uncle Wheaty.

I've been unlucky enough to work for a number of companies which have gone under, and even though they were all doing decent-ish business at the time, their costs just couldn't be supported (cash-flow is often more important than cash.)

Work at home for as long as you possibly can - if you categorically need to expand, don't get anywhere big and/or flash unless it's vital for you to see clients there and to impress them. Don't employ anyone else until/unless absolutely necessary (see above posts re. outsourcing vs. employment law.)

And sadly, I agree you can't trust anyone - two different pals of mine have both been ripped off in the past few years by former friends who they went into partnership with.

Good luck!

you still up fot it? It's hard to disagree with any of the above points, and the posts by Azeem,Richie B and Metal Mickey are particularly prescient. Final advice: People and firms you never knew existed will come out of the woods offering goods/ services you never knew existed. Ask yourself: do I need this? If the answer is yes, well do it yourself! Every penny is a prisoner, not to be released unless necessary. My son is an head accountant for a large North Sea Oil Firm... he has a mantra that was driven into him from the very first day he started work: "Profit is King, money in the bank is God".
Finally, Banks will only ever offer you money when you don't need it. If you do need it, they won't give it. This is a fact.
The positives are worth mentioning too.....If you are good at what you do, you will have a proven track record for making money for other people...now you will make it for yourself. Keep us all informed of your progree, my friend.