Mistle Thrush Ltd

Life as a FreelancerLife as a Freelancer

Paul Davison, Mistle Thrush LtdPaul Davison, Mistle Thrush Ltd My history and connection with My history and connection with

QMUoLQMUoL Aims of this talkAims of this talk

Mistle Thrush Ltd

Becoming a FreelancerBecoming a Freelancer

Why did I do it?Why did I do it? Wanted more freedomWanted more freedom Needed more technical challengeNeeded more technical challenge Wanted less interferenceWanted less interference Less commuting/inflexible work hoursLess commuting/inflexible work hours

Mistle Thrush Ltd

Becoming a FreelancerBecoming a Freelancer

Reasons not to do it:Reasons not to do it: There isn’t a safety netThere isn’t a safety net You have to find the work yourselfYou have to find the work yourself What happens if you fall ill?What happens if you fall ill? Less “networking” with colleaguesLess “networking” with colleagues Need a lot of self-discipline, it’s not for Need a lot of self-discipline, it’s not for

everyoneeveryone

Mistle Thrush Ltd

Setting it upSetting it up

Ways of working for yourselfWays of working for yourself Sole Trader/partnershipSole Trader/partnership Limited CompanyLimited Company Umbrella CompanyUmbrella Company

I chose Limited CompanyI chose Limited Company Company RegistrationCompany Registration AccountantAccountant Ongoing liabilitiesOngoing liabilities

Mistle Thrush Ltd

BanksBanks

Open a business bank accountOpen a business bank account Need company registration documentsNeed company registration documents Almost certainly need a business planAlmost certainly need a business plan

Raising financeRaising finance Depends on your plan and your track Depends on your plan and your track

recordrecord SecuritySecurity

Mistle Thrush Ltd

AccountingAccounting

Ongoing accounting neededOngoing accounting needed Sending out billsSending out bills Receiving paymentsReceiving payments Running a payrollRunning a payroll DividendsDividends

VATVAT Voluntary or CompulsoryVoluntary or Compulsory Can be advantageous to registerCan be advantageous to register

Mistle Thrush Ltd

InsuranceInsurance

Statutory requirement: Employers Statutory requirement: Employers LiabilityLiability Minimum £5,000,000 settingMinimum £5,000,000 setting

Public LiabilityPublic Liability Damage to someone else’s propertyDamage to someone else’s property

Professional IndemnityProfessional Indemnity Tax and VAT investigation insuranceTax and VAT investigation insurance

IR35IR35

Mistle Thrush Ltd

Finding WorkFinding Work

ContactsContacts AgenciesAgencies Online job sitesOnline job sites Local businessesLocal businesses Web advertisingWeb advertising Paper advertisingPaper advertising Phone callsPhone calls

Mistle Thrush Ltd

Setting a priceSetting a price

Payment per hourPayment per hour Payment per jobPayment per job What price to charge?What price to charge? Offering incentivesOffering incentives

Mistle Thrush Ltd

ContractsContracts

Setting the basic ground rulesSetting the basic ground rules Conditions of paymentConditions of payment Substitution clauseSubstitution clause Professional IndemnityProfessional Indemnity Tailored to client or projectTailored to client or project

Mistle Thrush Ltd

The UK MarketplaceThe UK Marketplace

Viewed as high costViewed as high cost Overseas software development is Overseas software development is

becoming popularbecoming popular Large concentration in London and Large concentration in London and

South EastSouth East Take a “service” based approachTake a “service” based approach

Find projects and technologies that Find projects and technologies that require personal involvement, not require personal involvement, not remotelyremotely

Mistle Thrush Ltd

Work ExamplesWork Examples

R L Davison & Co LtdR L Davison & Co Ltd Strategic planning and adviceStrategic planning and advice Networking (security and operations)Networking (security and operations)

VPN/WirelessVPN/Wireless Email/Web projectsEmail/Web projects Fileserver maintenanceFileserver maintenance Linux expertiseLinux expertise

Mistle Thrush Ltd

Work ExamplesWork Examples

Localeyes UK LtdLocaleyes UK Ltd My old companyMy old company Networking consultingNetworking consulting UNIX consultingUNIX consulting Help with office move projectHelp with office move project General technical fallbackGeneral technical fallback

Mistle Thrush Ltd

Work ExamplesWork Examples

Juniper networksJuniper networks UNIX help and adviceUNIX help and advice

MacOS XMacOS X Gaming projectGaming project Client/server contacts databaseClient/server contacts database

Mistle Thrush Ltd

Future PlansFuture Plans

CharitiesCharities Small companiesSmall companies Local BusinessesLocal Businesses AgenciesAgencies AdvertisingAdvertising

Mistle Thrush Ltd

Is it a good idea?Is it a good idea?

Yes, becauseYes, because You are your own bossYou are your own boss You set your own working hoursYou set your own working hours You have control over your working You have control over your working

environmentenvironment You have the potential to do very well You have the potential to do very well

financiallyfinancially If you are both determined and lucky, it If you are both determined and lucky, it

could be the start of something bigcould be the start of something big

Mistle Thrush Ltd

Is it a good idea?Is it a good idea? No, becauseNo, because

You are on your ownYou are on your own You have to do everything yourselfYou have to do everything yourself There is nobody else to blame when things There is nobody else to blame when things

go wronggo wrong There’s no “cushion” to fall back onThere’s no “cushion” to fall back on You don’t have colleagues to exchange You don’t have colleagues to exchange

ideas withideas with The administration is a nuisanceThe administration is a nuisance You need to be self-disciplined to keep your You need to be self-disciplined to keep your

skills up to date and take enough holidayskills up to date and take enough holiday

Mistle Thrush Ltd

The EndThe End

Thanks and good Thanks and good luck luck