Running your own wee business

**jonbuoy** · 15th September 2006, 13:15

Anyone here who runs there own small/sole trader business? How do you find it compared to working for a salary? I know there are a few tax perks - do you have your own acountant or do you fill out your own tax forms? - any advise appreciated.

Cheers.

**bungbung** · 15th September 2006, 13:17

People will pay for my urine?

I'm in!

**WRT** · 15th September 2006, 13:23

Originally Posted by bungbung

People will pay for my urine?

I'm in!

Jeez, I've heard of taking the piss before, but that's ridiculous.

**kickingzebra** · 15th September 2006, 13:36

Used to, You don't have to be a university qualified accountant to take care of your own tax etc, but where (good) accountants come in useful is claiming back operating expenses, and all those little laws that look after the little guy.
To be honest I always earned more self employed anyway. Go for it!

**Big Dave** · 15th September 2006, 14:03

Yep - Sole Trader - sent it all to the accountant and sign the cheques.
They look after the rest and I can concentrate on being a loose unit.

**Brian d marge** · 15th September 2006, 14:08

Me , I am just starting, I use Quicken , record EVEYTHING i spend ( keep all receipts lia folder, and as was suggested by another kiwibiker ,,take SMALL baby steps , dont rush

So I have a day job , this allows ne to sit on Kb all day ,,errr pretend I am working ,,

No I am slowly getting things up and running , the premisis is up and running , though I managed to poke a whole in the new wall.

The product is nearly there, though selling is quite hard

The thing I noticed if you are trying to sell stuff , the mark up and price you have to sell it at in order to keep the doors open

So I am struggling to hit upon that magic product ,,,which I can get for nothing and sell for millions

Even Air , costs 350 yen to buy

Stephen

**Finn** · 15th September 2006, 14:12

Originally Posted by jonbuoy

Anyone here who runs there own small/sole trader business? How do you find it compared to working for a salary?

Cheers.

There's no easy or logical answer. It depends on the business.

If you can kick it off and day one make money then great. If not you either have to rely on savings while you grow it or start it on the side and grow it while you have other income.

Nothing happens over night. It takes time, vision, passion and hard work. The rewards can be great. If it's big enough an accountant is a must, so to is undestand basic business practices like cashflow, planing, marketing and finding new and interestings ways to avoid tax.

Good luck!

P.S. There's heaps of resource on the web for small business start ups.

**oldrider** · 15th September 2006, 14:14

I have done everything that I really wanted to do on this earth and feel completely satisfied with my life, so I will not go to my grave with any regrets that I never did this, or never did that!

That is a good feeling, especially when you are getting closer to the end of your innings.

However, there are one or two little things that I think would have been "interesting" to have done.

Setting up and running my "own" business successfully is one of these, probably top of the list!

I think it is the measure of a person's ability to demonstrate self sufficiency, IE: The measure of the man!

Congratulations to all of you who have successfully done this, I salute you.

If you are one who is wondering about having a go, seize the day, do your homework and just do it. John.

**Jack the Ripper** · 15th September 2006, 14:28

Originally Posted by jonbuoy

How do you find it compared to working for a salary?

Exceptionally better financially and lifestyle wise.

Originally Posted by jonbuoy

I know there are a few tax perks - do you have your own acountant or do you fill out your own tax forms? - any advise appreciated.

I have my own accountant, however learning your tax responsibilities and the core accounting processes is not a complicated exercise.

**jonbuoy** · 15th September 2006, 15:26

Cheers everyone, needs some serious thinking. Wonder if I can class the bike as a work vehicle if I put a top box on it and a company logo - P/T

**Animal** · 15th September 2006, 15:31

Originally Posted by jonbuoy

Anyone here who runs there own small/sole trader business? How do you find it compared to working for a salary? I know there are a few tax perks - do you have your own acountant or do you fill out your own tax forms? - any advise appreciated.

Cheers.

G'day Jonbuoy,

Hell, yes! I've been running my CAD business for several years now, and the fun doesn't stop. However, neither does the stress. Self-employment is not the ideal choice for everyone. For me, the biggest drive is the complete and absolute autonomy which structured employment doesn't offer. I'm by no means particularly clever or talented, and I'm not overly ambitious or dynamic. I am prepared to work bloody hard and put in some very long hours, but the freedom and autonomy gives me the kind of job satisfaction I crave.

Having the understanding and support of your partner is vital to running a small business. My ex-wife never could cope with this inherent instability, and she really struggled with the stress. Some women just can't cope with the loneliness and the stress.

Now, this is important... if you're going to start your own business, don't leave it too late. You have to hope that the business doesn't fail, but you do have to be young enough to still be employable if you need to fall back on structured employment. This is a frightening fact, but most new start-up businesses fail within 2 years, so you do need to be prepared to have to find a job - and then try again. Never burn your bridges because you might have to return to the company you just left - either as a client if things go well - or if things go wrong, as an employee.

Self-employment can be defines as working twice as hard for half the money. That's not bullshit. If you're prepared to give up your nights, weekends, stat holidays, lifestyle - and that includes riding - but be comitted to putting in months of 120-hour weeks, it will eventually become self-sustaining. Don't let anyone tell you it's an easy life, and that the money falls into your lap. It's exactly the opposite to that!

Pm me. I'm more than happy to expand on this dialogue, and give you the good and the bad without any bias.

**Holy Roller** · 15th September 2006, 15:55

Originally Posted by jonbuoy

Cheers everyone, needs some serious thinking. Wonder if I can class the bike as a work vehicle if I put a top box on it and a company logo - P/T

One can claim mileage on a private vechicle for work related stuff but a log book needs to be kept to prove this. We have had company vechicles but due to the nature of our bookshop store we wern't doing enough mileage to warrant this. Now we claim the mileage and this works out better for us. Your accountant will best advise on what option one should take.

CADanimal is right on with his comments, reality is no holiday. We are in our 4th year of starting a business from scratch. We have out grown one building and are doing very well now but the business is still not producing a full wage for the Mrs though the workers get their share. cashflow is the killer in our type of business as it is with many others one needs to keep on top of it to survive long term. if I was not shift working we might not have got to where we are today. We brought the business when I was to be made redundant from a saw mill. The business had just closed the door so we brougfht the stock and fittings and started over.

**Mom** · 15th September 2006, 16:14

Having been self employed for most of my working life I say go for it!

Planning for your business and reviewing your progress regularly is essential.
A few years ago I did a stint mentoring for "Business in the Community" which is a free service for small businesses starting out, where you ask for help and a mentor that has experience in that area is appointed to help you out.

Self employment gives you a vested interest in suceeding, you will find you will work hard but be able hopefully to plan for times to have fun!

Get some advice from a good accountant, IRD has some useful resources too. Put good financial management strategies in place, and stick to them. Never hesitate to ask for help. Have fun...feel the fear and do it anyway!!!