Are you thinking of going self-employed #Part 3

In August last year, I wrote an updated article (Are you too thinking of going self-employed #Part 2) which continued to share my experiences of being self-employed, and the lessons I learnt along the way.

My first article was without doubt the most widely read piece I had ever produced, followed by my updated piece as I reached 12 months and, in both instances, I was pleased to receive direct messages from readers seeking advice or simply wanting to chat about their own struggles. Even my ex-colleagues reached out, curious if self-employment was a viable option for them as well.

Now that I've been self-employed for 18 months and with the cost-of-living crisis ongoing and companies still making job cuts, more people are considering a career change. So, I wanted to give an update on my experience thus far - the challenges, opportunities, and lessons learned along the way.

To recap: In 2022, I made the leap from being COO at a UK arm of a global recruitment company to self-employment through my own limited company still within the staffing industry.

My business, Argylestone Consulting Limited, provides change and transformational support and guidance to international recruitment organisations looking to find operational efficiencies through process improvement, the optimisation of legacy recruitment systems or looking to develop their service offering into the MSP or RPO markets.

In the last 18 months I have been fortunate to work with 2 global recruitment brands both in the UK and internationally and three niche staffing firms in the healthcare recruitment space. I have worked on both a full-time basis and a part time basis, enabling me to support multiple clients simultaneously. In addition, I have turned down work from UK and international staffing firms in equal measure.

Since sharing my progress in the self-employed arena, several ex-colleagues and those from my LinkedIn community have got in touch to ask a few questions about some of the challenges I have faced being self-employed. Hopefully this article will provide some insight into those questions and how I find myself answering.

The possibility of becoming a freelancer/ contractor is not commonly discussed in schools or colleges, leaving it as a less defined career path. Many people assume that freelancing is only used as a temporary solution between full-time jobs or as a part-time side job. However, with the current state of work, self-employment through freelancing has become a viable and long-term career option.

One of the early questions I am typically asked is around the choice between working for one client full time for between 3-12 months versus maintaining for portfolio of part-time, short-term clients (i.e., less than 12 months)

I have chosen the latter for several reasons. Recruitment agencies comes in all shapes and sizes and not everyone will need support that's going to span 6 or 12 months. Sometimes the project can for most, be tedious such as producing process maps and documenting / flagging areas where duplication occurs, and efficiencies can be found, and internal resource don’t have the desire or the skills to do it. Smaller agencies don't have the depth or breadth of internal resources available, and the MD or CEO needs a second trusted pair of hands that can not only deliver results but coach their teams for on-going management.

I also love a project and I want to ensure that the client paying me is getting the very best version of me and I know I do that best, when I have focus and don't allow myself to get too comfortable, which let’s be honest, is hard at the best of times when you are fortunate enough to have a client base as lovely as mine.

Identify your specialist area

Discovering the perfect balance between your distinct talents and the in-demand abilities that companies desire can be done by defining your specialty as a freelance contractor. You may choose to specialise in a specific service, or like me, cater to a particular type of clientele or industry, or offer a combination of services that complement each other. Whichever niche you decide on should highlight your strengths, be easily comprehensible, and provide valuable support that is in high demand.

Business Development

That said, it does mean that business development is a constant. 07:00-19:00 Monday to Friday is time I dedicate to my clients, and the evenings and weekends are for me and my business, though this may change depending on what is required. As a result, organisation and planning is key. Many of you will probably be aware that I try and post daily onto LinkedIn as this is where most of my existing and potential clients can be found and creating content which people will find both engaging and helpful is not easy.

More than ever, I find it vital to take time to keep up to breast with industry news, whether that's employment law related (everyone seen the update on employee restrictive covenants?) or the latest recruitment technology. I engage with recruitment software vendors weekly, participate in webinars, subscribe, and read their monthly development updates and talk to their clients about how they find the products.

How does this link with business development you may wonder. For me, it’s all about building relationships and cultivating trust. I frequently share what I know with my network free of charge and without obligation. If an MD or CEO contacts me for an initial chat, in most cases they find themselves walking away with a cheat sheet, discovery document or something they or their team can use to help them out initially and to aid them in getting the ball rolling internally, before any project may in fact kick off.

All but my very first contract has been because of a recommendation from either someone who has worked with me in the past or my LinkedIn network. There are few things more rewarding than a client referral.

Committing to work

With BD being a daily activity, I am constantly booking in new projects as capacity becomes available. As I work with multiple clients, this can be as little as half a day a week, through to a full-time contract ending. Should it be the latter, I look at securing my next project 3 months before the end, so I have my next contract or project signed about 4 weeks before the project I am replacing, ends. To enable me to effectively manage my workload, I run a project planner for the year.

This planner is pulled together in January, and I start with blocking out all my annual leave for the year. I then plot in my training days, seminars, and industry events. By the first week of Jan, I know confidently what days I will be working and which days I won’t. Once that's done, I drop in all my existing client projects which have been fully signed and good to go. That way I can clearly see what capacity for projects I have available and when.

When to turn down work?

Time: Being realistic as to what you can achieve in a day, week, month etc is vital. Over committing will lead to one thing and one thing only.. disappointment, ?and that's not fun for you or your client and if like me you have multiple clients on the go at once, you must be clear on your deliverables and set clear expectations.

I am currently booking new clients into July and how many clients will be down to the complexity of individual projects.

Relationship: For change and transformational projects both the prospect client contact and the business must be ready for the change, or keen to understand how they become ready. My prospect clients will probably have been in touch over the proceeding months informally, we will have had a Teams/ Zoom chat or a face-to-face coffee. I will have provided some initial and free support and guidance based on my experience and we will speak on email and LinkedIn. During this time, both of us will have a good understanding of the other and a feel for a connection. If it doesn't happen, and occasionally it doesn't, that's OK, and I will always do my best to recommend someone who might be a better fit.

The task: I am self-employed to do the work I love and to work with the flexibility I need which allows me time for travel with the hubby. Not every task in a project is going to fill you with joy and excitement, however, if at the mere suggestion of doing a Visio workflow your stomach churns or is simply out of your skill set and you’re not currently up for learning something knew, don't take the job!

The rate: Another common question I am asked is what happens if a client doesn't want to pay my day rate. It's probably the easiest of all questions to answer, I would politely decline the opportunity. That's not to say there is absolutely no negotiation, of course there is, and I will quote based on the task or project complexity. I am very upfront with all prospect clients around my costs and what they will receive for that investment. I am fortunate that so far, all my clients have recognised that engaging an ex-COO of a global staffing firm who is both strategic and hands on, can add real value. Couple that with having worked on both the sales and operational side of the fence, can be very advantageous with engaging with business wide teams.

Collaborating with others

I often hear other contractors in my space cautious of networking with follow contractors, worried about giving away insight or prospect client information, in case that person tries to nab your client before you've done the deal. I have also seen other contractors appearing quite uncomfortable when they find themselves on a project with another contractor. I must be honest, it's not something I personally worry about.

I am more than happy to share what I know with my clients and other contractors. I am delighted to leave a client in a place where they can carry on without me as I result of what I have taught them. Should I find myself gazumped on a contract because of something I shared with another contractor, well that says more about them, and they probably won’t find themselves as the recipient of any client referrals I may need to pass on in the future.

In the last 18 months I have had the pleasure of working alongside two contractors on client projects and I have to say, we have had a blast. Not only would I be delighted to work with either party again, but I would also happily recommend either party to one of my clients or prospect clients if I am unable to support.

Earlier this month I created a recruitment partners page on my website, to share the detail of some incredibly talented individuals I have worked with in the past or collaborated with over the years in some shape or form. Both ladies provide a service which complements my offering and are recruitment industry experts. I am delighted to be able to support and champion my industry peers with whom I have a genuine fondness for who they are and how they support their clients. I look forward to adding more to this list over the course of 2024.

As a contractor, my network is crucial. The way I cultivate and maintain relationships within my network is the closest thing I've found to being employed by a company. By consistently and actively engaging with those in your network, you can build a mutually supportive community of individuals who share your ambitions. They will happily refer clients to you, support your endeavours, celebrate your achievements, and offer advice during challenging times.

As an example of further collaboration and in aid of International Women’s Day 2024, I was invited to collaborate in a book which celebrates the achievement of entrepreneurial women across the globe. Not only has it been inspirational to hear other women’s stories of how they got to where they are in their industries but it’s also a great reminder as to what can be achieved when you deliberately focus and do your best work. I cant say I had ever consider myself an author but if I have learnt nothing else over the course of the last 18 months, it’s the importance of pushing yourself out of your comfort zone.

Do your best work!

Your clients are paying you to deliver a service, you must turn up every day with your game face on. In some instances that doesn't always mean with a full face of makeup and if you call me after 7pm in the evening, there is every possibility you might find me in my PJ's - especially if you try and video call me, (clients to remain anonymous!), but I will always give 100%. I have a fabulous relationship with my clients past and present and whether I am onsite in their offices or collaborating with them over teams, I am made to feel very welcome and absolutely part of their team, however, I never lose sight of the fact they are my client, and I am there to deliver specific outcomes. This is where for me, the shorter contracts help ensure I never get too comfortable or complacent.

It goes without saying reliability is vital. One important element that is often overlooked in becoming a successful independent contractor who is consistently hired is the ability to be a dependable and trustworthy partner for your clients.

Running your business

The more clients you have the more there is to do. We have already established that business development is on-going, but so is the admin.

I have LinkedIn posts going out daily, I book time aside during the week and at the weekends to generate content, to read posts from my LinkedIn community which includes commenting and sharing their content. Personal development again is ongoing and for me this is both formal and informal methods such as reading industry magazines, tech updates etc, industry seminars and webinars.

I track all my invoices, expenses, and payments. I monitor my costs and any expenses I am incurring on behalf of my clients to get the best value for money when it comes to travel costs and I track everything. I generate all invoices using Xero and proactively manage and monitor my P&L.

I speak fortnightly to my accountants and monthly to my financial advisors and quarterly to my external legal and contracts team.

I make sure I keep money aside for VAT, corporation tax, insurances as well as my advisor costs. I make sure I budget for things like my Microsoft 365 business licence, Website costs, LinkedIn licences, CiPD membership, software licences for things like my accounting software Xero, Canva for social media, Visio, Clockify etc. I also allocate budgets to training and any re-qualifications, I need to do.

I review my client specification document every couple of weeks to make sure that I am on track for all my milestones, and I encourage all my client stakeholders to sit down with me every couple of weeks to discuss the projects progress. All activity gets tracked via a cracking little tool called Clockify which not only helps for invoicing purposes but also when quoting for new projects I have a record of how long similar tasks and activities or even projects take to complete.

Parting remarks

18 months in and I can say with certainty that starting Argylestone Consulting was the best decision for me. It still feels like I have several plates spinning at times, however, it’s all manageable because I have structure and a plan.

Having a solid support network around me is also key as working alone can be lonely especially if you are like me and like to be with people, so don't be afraid to get out there and network.

Recognising that I don’t know it all and not claiming to know so, for me is vital. It doesn’t matter how much planning and preparation you do there are surprises on every project – let’s not forget, you don’t work for the company you are contracting for and reliant on your client to provide you all the required information, but even then, not all the information is available due to limitations of their systems or existing processes.

Learn something new, every day!

Recognise the difference between working for your client and working on your business, treat them differently and allocate the necessary time and investment into each, as without each part working effectively both will suffer.

Being self-employed is not a lifestyle that suits everyone. However, by understanding the advantages and disadvantages of contracting, one can consciously utilise its benefits and mitigate its drawbacks. One major advantage is having the freedom and power to choose which clients to work with, what projects to take on, and how to manage your schedule. This aspect of self-employment often brings the self employed, the most satisfaction.

?

Got more questions?

If you still have questions around being self employed or are a recruitment business thinking of working with a contractor for the first time and not sure if it’s the right decision for you or your business, drop me a line. I am happy to chat (confidentially if needed).