Thanks to LinkedIn, my fifth anniversary in business has become publicly known. I am thankful to my network for reaching out to congratulate me. It is also a significant personal achievement for me. Having dabbled with several jobs my eighteen years of working life, this is my longest stint! And one that I am not looking to shift away from, in the foreseeable future.
The five-year mark is a very special milestone for small businesses generally. Within it, there is a good chance you will experience both headwinds and tailwinds. The weak die, the strong survive, the best thrive. Not surprisingly, businesses that cross the five year mark tend to attract more VCs and investors.
Our journey has not been just a path full of roses. As I reflect back on the biggest headwinds we faced, the introduction of off payroll working regulations in the public sector trumps them all. At the time, just before the change went live, I remember commenting on a LinkedIn forum. A particularly pessimistic contributor was making doomsday predictions and I couldn’t take it. I responded with my view of the changes and my tactics to deal with it. His response was on the lines of “I wish you well.. but I know your attempts will fail!”. It kind of hurt for a day or two.
I was always confident that I was operating in a very arms-length manner as a supplier should. However, I was nervous that departments would take a very conservative approach and make broad brush decisions about “contractors” as a group. I had even participated in the HMRC consultation on the subject, however my attempts weren’t successful.
With some fortune of being with a right-thinking client and some preparation in adjusting our business model, none of the risks materialised. In hindsight, that regulatory change has in fact been the turning point for the business in a positive way. Both our client and our subcontractors find our outside IR35 business model a very safe and collaborative way of working together.
What have I learnt from this?
One, that if you adapt well, headwinds can become tailwinds. In fact, I would say, that if the external environment hadn’t shifted dramatically, there would have been little opportunity for a new player like us to displace existing arrangements that our client had. So, change that appears bad is actually good for upcoming businesses.
Second, it reinforced in me the relationship between risk and reward. The most risk averse stance I could have adopted at the time was to move away from the public sector. By taking the risk of staying put, I gave my business the opportunity to make the most of the opportunities that the change presented.
Third, the opinion or consensus of people who have nothing to do with your business is irrelevant. I now believe the most vocal group of people are those who oppose a change. I was one – when I opposed the off payroll working rules. The smarter people are those who are quietly using the opportunity (… in the adversity) to prepare themselves to capitalise on the change.
