Debt counseling in operation
I have been helping municipalities improve debt counseling for years. I also support in setting up debt assistance specifically for entrepreneurs. But since 2015 I have completely different glasses on: I am now an expert! No, I have no debts; I am now self-employed.
I remember well, early 2015, when my first invoice was paid. An impressive amount was deposited into my business account. I must honestly say that I quickly booked a cool holiday. But soon came the realization that I have to pay VAT on that nice amount every quarter. Oh, and I have to put some aside for my retirement. But how much actually? How old will I get?
My wife is also an entrepreneur, so we thought it would be useful if at least one of us is well insured against disability. What an enormous amount! And recently the Tax and Customs Administration sent me the provisional assessment 2017 and the final assessment 2016: whether I want to pay income tax twice within a month. And that cool holiday: it not only costs money, but also means a considerable loss of income!
Haha, no, I don't want to discourage anyone from starting for themselves. I haven't regretted it for a moment. But prepare well! Talk to the Chamber of Commerce and get a good accountant. It never occurred to me to agree with the municipality to talk. Well that was not so obvious to me either, because I did not start from a household income at welfare level. And I was not in debt. But it also appears that entrepreneurs who are (temporarily) short of cash do not know how to find their way to the municipal desk. And that while many municipalities have the necessary expertise in house. They can help you start or restart your business and you can go there for example through an interest-free loan, a start-up loan or a supplement to your income up to assistance level. If the need is high, you can even receive working capital as a gift. And a debt counselor can negotiate with your creditors, so there is a good chance that you will be released from all your debts in three years.
Maybe you did not know that the municipality can support you? Or do you wonder how such a 'dull civil servant' can help you as a creative, hard-working freelancer? I say, be surprised! Many municipalities offer excellent help and sometimes also involve other entrepreneurs. So plan a conversation; take action!
Martijn Schut is an independent interim manager and organizational advisor