"Want to start your own business? I can help you grow, but I won't talk about what it really takes...."

See...this is my problem. I know quite a few business owners - most of whom I've met on the business networking scene, all of us out there, trying to help one another by answering cries for help on Social Media ("Does anyone know a Printer, Solicitor, accountant, HR person?" etc - you're never offering your services to those that network, but the clients of those networkers - I think it's the same for all Social Media - but thats another post!). A conversation rarely had, is the difficulty of growing your business from seed. The only person I have ever known to talk about this and write about it is Mike Greene - Entrepreneur, writer of 'Failure Breeds Success' and other novels and currently chair of Huntingdon and Peterborough Chamber of Commerce (He was also 'a Secret Millionaire' in the Channel 4 series of the same name).

Building a business from scratch, with no clients and no money is tough and in my humble opinion takes large Cajones. From the day you set out, you have fixed costs that are unlikely to be met from the business profits and so you rack up debt. This may be credit card or overdraft to begin with, but soon it may mean late payments on Mortgage and late payments on the credit card - no one talks about this part and I don't know why. I attended an Accountants presentation, who talked about a hypothetical business "that started up last year and lets say for the purposes of the presentation, the business grew by 27%, year on year for the next five years..." Excuse me?? as a percentage, how many new businesses setting up from scratch can boast that type of performance was what I wanted to ask, instead I got up and walked out.

You need the total support of everyone around you but most of all, YOU need to believe YOU. When those late payment notices come through, you need to believe that you are on the right track and doing the right thing. Ignoring the Facebook posts of friends who are able to holiday abroad, or eat out at the finest and the best and ignoring those around you who question your sanity for setting up your own business. So unless your significant other is earning enough to pay bills, or you have saved a couple years salary, or you have borrowed from the Bank of Family, or backed by another business owner, or a combination of all the aforementioned, you accept that setting up business, there is a chance that you could rack up some debt, have some direct debits bounce and your credit rating take a bit of a battering - how do I know this? because I have just described my early years and I will never, ever shy away from telling anyone how it is. I opened the doors of VS Associates on the 4th January 2016 - no clients, no income, I had a mortgage, credit card, an overdraft, a wife and a 4 year old son. It was Mike's book that let me know what might happen along my journey - no one else I was aware of was saying it - No business coach, mentor etc was going to take me to one side and let me know what might lie ahead and just because I'm an Independent Financial Adviser doesn't mean I have a crystal ball, or should know about running a business. I do not consider my occupation as a forcefield against setting up a business.

I'm 2 days away from my 7th business birthday. VS Associates continues to grow. The benefits of running my own business has manifested itself by the amount of family time I have. I don't care if it's Monday or Friday - I feel the same joy every day (Sickening isn't it? I was a corporate employee for 16 years and I knew the difference between a Monday and a Friday!!!) Income and expenditure are now under control, although some months are easier than others, I have learnt to budget out and plan.

It took 4 years for things to even themselves out for me and another couple to get on top of the finances. Maybe I should have stayed on the Corporate Wheel, maybe I should have saved before jumping...But I have zero regrets about doing what I did, when I did it. So if you are thinking about setting up your own business and want to know about the down side as well as the up, feel free to get in touch. If not, there's plenty out there who'll avoid the downside stuff and gloss over it...even though there is a good chance they've experienced everything I've described and more.

Victor

Victor Sacks Dip PFS

Owner, VS Associates - www.vsassociates.co.uk