From Employee to Entrepreneur: The Leap into Business Ownership

Sarah Vaughan, founder and director of Angelica Solutions, a London based consultancy that specialises in data-driven solutions for the insurance industry,didn't start her business with a grand vision or a meticulously crafted blueprint. Instead, her entrepreneurial journey unfolded organically, driven by a combination of circumstance and a desire for greater autonomy.

In a conversation with Entrepreneur UK, Vaughan takes us through her path to entrepreneurship, the challenges she encountered along the way, and the mindset shifts that have shaped both her career and her business."My decision to start a business wasn't part of a grand plan - it happened organically," Vaughan begins, reflecting on the serendipitous nature of her transition into entrepreneurship. Like many ambitious professionals, Vaughan was initially focused on securing a senior role in her field, which, in her case, was in the increasingly crowded telematics market. However, as the market became more saturated, she found herself facing diminishing opportunities. "The telematics market was becoming crowded," she explains, "and that, combined with a desire for greater autonomy and control over my career, led me to take the leap into entrepreneurship." Her decision to take the plunge into business ownership wasn't made lightly. The move required a shift in perspective - one that ultimately proved to be both challenging and exhilarating. Vaughan had a desire to work on her own terms, to be her own boss and steer her career in a direction that felt more aligned with her values and aspirations. In a market that was becoming more competitive, she saw an opportunity to carve out a space for herself and bring her own unique perspective to the table.

As is often the case with new businesses, one of Vaughan's biggest early challenges was managing cash flow. "Cash flow was one of the toughest hurdles," she admits. "When you're starting out, it's easy to assume that invoices will be paid on time, but that's not always the case." Cash flow is the lifeblood of any business, and for Vaughan, learning how to effectively manage finances early on was a crucial lesson. "Invoices not being paid on time can have a huge impact on operations," she explains. "Managing finances effectively, ensuring timely invoicing, and keeping an eye on tax obligations were all critical to keeping the business afloat." For Vaughan, the financial discipline required to keep Angelica Solutions running smoothly became a cornerstone of her business strategy.

But it wasn't just about ensuring the business survived; it was also about investing in its growth. "Expense management, particularly around pension obligations, National Insurance, and training costs, also played a huge role in shaping hiring decisions," she says. Hiring decisions are never easy, but they were particularly tricky for Vaughan as she had to balance the growth of her team with the financial realities of running a small business.

The Impact of the UK's Economic Climate
Like many business owners in the UK, Vaughan has had to navigate a challenging economic environment, one that has had direct implications for how she manages her business. "The changes in National Insurance and minimum wage have had a direct impact on our ability to bring in young talent," Vaughan shares. The rising costs associated with these changes mean that businesses like Angelica Solutions have to be more strategic when it comes to hiring.

"We want to support and train young professionals, but the rising costs mean we have to be strategic about hiring," she says. "It's a balancing act between investing in the future workforce and maintaining financial sustainability." In this climate, Vaughan has had to carefully weigh the costs and benefits of every hiring decision, ensuring that she can provide opportunities for young talent while safeguarding the long-term health of her business.

The Evolution of Vaughan's Mindset
Over the years, Vaughan has experienced significant mindset shifts, particularly when it comes to her role as an employer. Early in her career, she believed that the role of employers was simply to provide for their employees. However, as her understanding of the professional world deepened, Vaughan's perspective changed. "One of the biggest mindset shifts has been around the role of employers," she reflects. "Early in my career, I believed that employers were there to provide for employees, but I've since realised that it's a two-way street. Employees need to bring value and initiative as well."

This realisation has reshaped the way Vaughan approaches leadership and employee engagement. She now believes that the most successful relationships between employers and employees are built on mutual respect and a shared understanding of the value each party brings to the table. It's not just about offering support to employees—it's also about fostering an environment where employees feel empowered to contribute their own ideas and take ownership of their roles. Vaughan also highlights another important lesson she's learned: "Another important lesson is learning to say 'yes' with boundaries - taking on opportunities without overcommitting or compromising on what's important." As a business owner, she acknowledges the temptation to take on every opportunity that comes her way, but she's learned that saying 'yes' without boundaries can quickly lead to burnout. By being more discerning about the opportunities she accepts, Vaughan has found a way to maintain a healthy balance between growth and sustainability.

Like many successful entrepreneurs, Vaughan has been fortunate to receive valuable advice along the way. One piece of advice, in particular, has had a lasting impact on her approach to business: "My father once told me that turning down opportunities doesn't have to be a hard 'no.' Instead, you can frame it as an affirmative response by offering an alternative or a different timeline." This advice has given Vaughan the flexibility to manage her workload without sacrificing potential future opportunities.

"I've found that this approach has helped me manage my workload while still keeping doors open for future collaborations," she says. This philosophy has allowed Vaughan to strike a delicate balance between taking on new opportunities and ensuring that she isn't stretched too thin. It's a lesson she now shares with others, particularly those considering entrepreneurship.

Advice for Aspiring Female Founders
For women thinking about starting a business in the UK today, Vaughan has some practical advice. "Be prepared for financial ups and downs and never assume invoices will be paid on time so plan ahead," she advises. Cash flow management remains a critical concern for small businesses, particularly for women who may face additional challenges in navigating the business world.

"Surround yourself with people you trust and who complement your skills," Vaughan continues. "Most importantly, don't be afraid to challenge conventional wisdom. Sometimes, the best opportunities come from unexpected places." By staying open to new ideas and approaches, Vaughan believes that female founders can create thriving businesses that not only survive but also thrive in a competitive marketplace.

One of the most rewarding aspects of Vaughan's entrepreneurial journey has been the relationships she's built over the years. "Building meaningful connections and networks is crucial for personal and professional growth," she says. Many of Angelica's clients are people Vaughan met early in her career, and she takes great pride in seeing how they have grown alongside her own business.

"Many of Angelica's clients are from contacts that I made right at the start of my career and it's great to be working with people I've seen grow over the last 20 years," Vaughan reflects. This long-term view of professional relationships underscores the importance of resilience, adaptability, and a passion for one's work. As Vaughan has learned, the path to entrepreneurial success is not without its challenges, but with the right mindset and a solid support system, the journey can be both fulfilling and rewarding. In the end, Vaughan's story is a testament to the power of resilience, adaptability, and strategic thinking in the face of adversity. Her willingness to embrace challenges, learn from mistakes, and approach every opportunity with a sense of purpose has made Angelica Solutions a success story worth celebrating.