The desire to be self-employed is on the rise. With more people wanting to choose their own hours, have flexibility of where they work from and be their own boss, self-employment seems like the best option.
In this ultimate guide, we give you some top tips on what to consider, questions to ask yourself and most importantly how to go self-employed.
Why work for yourself?
Not only do we run our independent accounting firm but we also speak to other business owners every day. This means we have a real insight into what it’s like running a business. Usually, when you ask someone why they want to work for themselves they will give reasons like to choose their own hours, to work around family and to be in control of the money they make.
Being self-employed certainly brings challenges but can be far outweighed by the benefits.
Some benefits of being self-employed
You can be creative – there are constantly opportunities to put your own stamp of creativity on your business
The control is with you – although everything falling on you can be nerve-wracking ultimately having the control is awesome
Do things you love – The services you offer or products you sell can be based entirely around things you love
Opportunity to say no – If a project, client or proposal isn’t the right fit for you and your business you can say no
Things to consider before going self-employed
The jump from employment to working for yourself can feel overwhelming. There’s never really a ‘right time’ but there are factors to consider so that you can make an informed and confident choice.
Some questions to ask yourself:
*Will being self-employed fit in with my lifestyle?
*Am I self-motivated enough?
*Am I properly prepared to become self-employed?
*Will I have to get a new hobby?
*Do I have all the equipment I need or can I afford it?
Mistakes to avoid when working for yourself
A huge part of being self-employed is staying self-motivated. When working from home, the growing pile of laundry entices you in, family members could be asking you a million questions and admin may be left behind.
Being organised from the beginning is the best way to make sure you’re on the path to success. Some mistakes to avoid when working for yourself include:
Poor time management – decide on your work schedule and stick to it. Poor time management can lead to incomplete work, tasks taking too long and unhappy clients. It is now your responsibility to be self-motivated and productive.
Doing things because you think you should – being self-employed is all about making the best choices for you and your business. Only you know what is best.
Undercharging – Sometimes projects take longer than you thought. Learn from all the times things don’t go to plan and make sure you are charging enough to create a long-lasting business.
Not having streamlined processes – Make computers work for you. Our software recommendations for small businesses can help you streamline your processes, save you time and make life easier.
Not getting your taxes in order – An extremely common mistake for newly self-employed business owners is not understanding tax. It’s fine you don’t need to, but you definitely need someone that does. An accountant can help you stay organised so that your end-of-year process is completely streamlined and avoids any nasty surprises.
You’ve decided to become self-employed… what’s next?
The processes, day-to-day running of your business and financial planning are all keys to the success of your business. We can help with any questions you may have around bookkeeping, accounting and tax planning. Contact us today for a chat.