Five lessons from leaving finance to start a business

Going back to a job was what taught my business to run without me.

I grew up in West London and was always into money and business. Before Zmartly I worked in finance roles in investment banking, wealth management and private equity, starting at Barclays in investment banking finance. I left that career in 2020. I loved the job and I was very good at it, but I had a bigger passion to build something of my own, even at a huge pay cut.

Zmartly began as a side hustle, meant only to bring in a bit of extra income. I decided to push it, and made it my full-time work even though it was not yet profitable. It did not make a profit in its first four years. I am glad I made the choice, and here is what I would want anyone making it to know first.

1. Learn on someone else's payroll first

If I could advise my 21-year-old self, I would say this. Get five years' experience in a job where you learn from other people, then become self-employed straight away. It does not matter what the business is. Before you go, check when you need to register as self-employed.

Then focus on one business, not several. A new business needs every hour you can give it. Spread those hours across several ideas and none of them gets enough.

2. Know how long your money lasts

For the first two and a half years, I put my own savings into Zmartly at quite an aggressive rate. Then I ran out of cash.

I had two options. Let all the staff go and run the business on my own, or take a job for a while. I chose a six-month contract with a private equity firm, earned a good salary and rebuilt my savings. The staff ran the business while I was away.

That was when the business learned to run without me. When I came back, I focused on growth. I never had to go back to a job, and the business soon paid me more than my work income had. Those six months also made me hungrier to succeed, so that I would never have to do it again.

So before you start, work out how many months your savings will cover, and decide what you will do on the day they run out. A spell back in employment is a respectable answer. For me, it meant keeping the team.

3. Count your support as well as your savings

My parents came to the UK in the 1960s and worked incredibly hard. They pushed me constantly, they were my biggest supporters, and they still support me with anything I need. I wouldn't be here today without them.

A business plan counts money. It rarely counts people. Before you hand in your notice, know who is in your corner, and be honest with them about what the next few years will ask of you.

4. Let your clients do the marketing

For our first six years, every client came through referrals. We did no marketing at all, and only opened other channels once the business could afford an external digital marketing team. Today the split is about 30 per cent referrals and 70 per cent other channels.

Our conversion rate on referrals is still extremely high, because nothing beats someone vouching for you. People refer us because they are happy, and we say thank you afterwards.

For a new business with no marketing budget, the best campaign is the work itself.

5. Be honest about the hours

For the first six years I worked every day of the week. Weekends are mine again now, but I am still pretty much around the clock. I answer the phone and email when I am out with my family, and sometimes I am not fully present. That is a mental toll as well as a time toll.

I have never been bored, though. I would rather work twelve or thirteen hours a day on something I love than eight hours in a job I hate. Each year has been better than the last, but the improvement gets slower, and true freedom takes time.

School has helped. At nursery we could drop the children off whenever we liked. School runs to the minute, and the pickup is a hard stop in my day. I am far more conscious of time, which I think is a very good thing.

Many people cannot take this risk, because of a mortgage or children, and I understand that. Few people outlast the initial struggle. But if you can, it is absolutely well worth it.

What to do before you hand in your notice

Running my own business has taught me more in eight years than I could have learned anywhere else. If you are about to do the same, write down three things this week: the months your savings cover, the people who will back you, and the hours you can honestly give. Then read up on the tax and registration steps from side hustle to full-time business before the first invoice, not after.

About the author

Harvey Dhillon is the founder and CEO of Zmartly, a UK accountancy firm for small businesses. He grew up in West London and worked in finance roles in investment banking, wealth management and private equity, starting at Barclays, before leaving in 2020 to build the firm. He is a Chartered Management Accountant (ACMA, CGMA).

Image: Zmartly.