Self Employed - is it worth it?

[binks123]

Hi all.

I've been made redundant at the end of february. Now i'm receiving JSA-contribution based(i was declined income based due to my right of residency at the time of my claim) and i can't find work in my field at my town. As i'm unemployed for almost 4mts now, i figured that i can start my own business. Ideally i'd like to open LTD company, but all the paperwork and the cost of hiring accountant to do all of it for me are too high, so i thought that i'll start as Self Employed. But now the question is is it worth to do that. I will start from the beginning and i know that when i'll do that my own business will start to made enough profits to live from it after some time.

Now i'm receiving JSA and as far as i know, when i start my own business i won't be eligible to claim it any more. So if money from JSA letting me buy food will dry, i won't have any income(for some time). Now i've started to do some courses to have any certificates at al,l through Learningdirect and due to me being on JSA they are free. I've enrolled to ESOL and again because of JSA i'll have to pay only for exams, i want to use the fact that i'm on JSA to do some courses which i'll have to pay a lot if i won't have JSA. So advice me please is it worth to go for Self Employed in my situation? I realize that if i start there are no guarantee that i'll make any profit at all, but i'm prepared for that.

[RachelMD]

The purpose of Job Seekers Allowance is to support people whilst they find a job.

It's not to be used to fund people who decide to study for qualifications, mindful that as they're on benefits they'll get to take those courses free of charge.

You need to get a job, any job, as quickly as possible.

[binks123]

Ok, i know what's the purpose of JSA. But i'm just seeking advice if it's wort to "get a job" as my own boss.

[binks123]

Little ad to my first post. I started those courses because i don't have any uk recognized qualification. So i started them to get those cert in hope that it will help me to find work. But as i don't have any qual at all i thought that based on my skills i'll do self employment.

[honeybee13]

Hello there. I have a vague recollection that the jobcentre has advisers who will talk you through setting up a business, etc. Have you spoken to them?

 

You might want to start a separate thread [don't copy this one please] on the CAG Benefits forum and see if anyone there knows a bit more.

 

My best, HB

[MARTIN3030]

Hello binks.

You are to be encouraged to think about self employment.

It is not so easy in a recession but there are some businesses that have made a go of it.

New Deal,which previously offered help is now being scrapped.

The Gov have introduced The New enterprise allowance scheme,which is similar to a scheme that was running in the late 90s.

This is for people who already have an idea and a business plan and need help getting started.

Your jobcentre will give you details.

NEAS offers small grants and personal mentors,as well as access to funding.

I would also suggest that you contact your local chamber of trade.

If you pm me with your location I will give you some specific advice.

[MARTIN3030]

Forgot to add-have a read here

http://www.consumeractiongroup.co.uk/forum/entry.php?176-So-you-want-to-Start-your-own-business

 

I will be adding further updates soon.

[HSBCrusher]

You are to be encouraged to think about self employment.

 

I'll second that... go for it! I really do wish you the best with your endeavors!

[MARTIN3030]

http://www.syob.co.uk/business/High+Wycombe

 

http://www.businesslink.gov.uk/bdotg/action/home

 

 

http://www.thamesvalleychamber.co.uk/32

 

 

http://www.guardian.co.uk/money/2011/jan/05/new-enterprise-allowance-expanded

 

http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance

 

 

Some reading for you there.

Edited May 29, 2011 by MARTIN3030

[binks123]

Thx for all that. Maybe i need to explain why i made this post in a first place. As i've been advised by many people, i went to my job centre and made appointment with advisor about self employment. After this i was piratically discouraged to do it at the beginning. I already made complain against the guy. And now i have picture how job centre "helps people". When some of my friends learned that i've been granted JSA, they've been convincing me to made use of this JSA now and do all the certificates that i can. That's why i'm wondering now how much will i loose by becoming self employed. I'm claiming JSA and home benefit.

[ErikaPNP]

Hi Binks. You are perfectly entitled to study part time whilst in receipt of JSA - in fact it supports your claim because gaining qualifications can improve your job prospects whether that be employment or self employment. It is only if you become a full time student that it would interfere with your JSA claim, or if it otherwise impacts on you actively seeking work which from what you've written doesn't appear to be an issue.

 

Has your Jobcentre advisor mentioned Self Employment credits at all? The link will tell you more though there is precious little other information about it - but it's something to consider if you choose to go down that route. Best of luck.

[MARTIN3030]

Just worth a mention-on that website erika linked to it says that the NEAS will be available from August.

It has already started a roll out in several areas,but I guess means that it will be nationwide by August.

[binks123]

Thx for all advices and i'll appreciate more it u can:) As to advisor from Jobcentre, he was completely useless. Guy just fave me phone number to Fredricks foundation and that's it. As i said, if i would start just based on the advice from them i wouldn't start at all. He just discouraged me form it. I made complain about the guy but that's all i could do. As i was saying - people at Jobcentre who should encourage unemployed, don't give rats ass about it.

[MARTIN3030]

Binks,understand what you are saying,but not all job centre staff are like this or the same.

In fact it is their business to see you find work and become less dependent of benefits.

Maybe when you have something sorted you can show this to the guy-he would probably be interested to know.

[MARTIN3030]

When I was on new deal I took all my contact stuff and info-and my adviser asked to copy it and use it for their ref.

I was a little suprised they didnt know about it-but believe me,they ARE on your side.

[MARTIN3030]

Here is another link for you too.

ukbusinessforums.co.uk

This is a free site and if you register there,you will get regular updates on things that will be good to know.

[binks123]

MARTIN3030 i hope that what u saying about Jobcentre are true because i've got far more different experiences. As for the links, thx very much, telling the truth here i had learn more in a few days than for the past 3mts going to my Jobcentre. So thx for that:) U pushed me in right direction, showed me where i can read about it, what possibilities do i have.

But putting all of the above aside i'm getting back to my original question. Is it worth it? Or should i stay on benefits or just be looking for some job(and maybe be miserable doing it). I'm asking again after conversation with my friend. I toled about my dreams, my plans, etc but the response was realistic i have to admit, but quite depressing. She said "all ok, but u won't put food on a table from ur dreams, u wont pay the rent with ur dreams. So start looking for job, any job, to get u going and then, maybe after few years when u have the money to start, u can start realizing ur dream"

Well in a way she's right couse even with Self Employment credits, so basically 50 pounds a week i won't be able to pay bills.

I know that being ur own boss u can earn in one month 3k and for another 5 or 6 nothing but as i said i,m prepared for it.

But again. Is it worth it? What do u think.