How many times have we as self-employed people heard the expression, “But you own your own business! You must be loaded!”
Yet the reality is that around 50% of self-employed people earn less than the minimum wage. This may not always be apparent as people don’t often value their own time.
One of our clients is a general builder and whilst he claims he charges £100.00 a day, he often finds that due to bad planning, picking up materials which he forgets to charge for etc, his net profit shows as less than £60.00 a day which works out as £7.50 an hour (the minimum wage in April 2019 will be £8.21). Considering that if he were on an employed contract on minimum wage, he would also be entitled to 28 days holiday plus a company pension.
Of course, being self-employed has other benefits including more flexibility in working patterns but it is true that so many business owners today fail to plan for their future. This is often due to them not valuing their own time or the value they add to the customer.
When coaching any business, the first questions we ask are:-
· What is your exit plan? How do you intend to fund your retirement?
· How often do you go on holiday? And for how long?
· Who looks after the business while your away or if you are taken ill?
Far too often the response we receive is that there is little or no planning for the future and therefore, the business becomes exposed.
It’s quite tough for most self-employed people who are often far too busy “in the business” rather than working “on the business” to see. But with a little bit of guidance, along with a few simple changes, the results can be literally life changing.
So, if low earnings, lack of holidays or retirement planning are something you would like to change, you may well benefit from a business coach.
The first session is free and without obligation, so what have you got to lose?