Going Self Employed: A Beginner’s Guide

Going self employed

Are you starting to loathe your nine to five? Do you find office politics a nightmare? It might be time to think about getting out of the rat race and taking more control over your career. We’re talking about becoming a self-employed business owner. It sounds exciting doesn’t it, and you’d be joining a growing trend. Right now, hundreds of thousands of people are setting up their own business and taking more control of their income. You could be next. But there are a few things that you’ll need to consider first.

What Changes?

Your income will be the first big change you notice. Suddenly, you won’t have a fixed income entering your bank account at the end of each month. Instead, your finances become far more unstable. The good news is that once you set up your business, you will be in complete control of how much you make each month. It will depend on your revenue and your level of profitability as well as how much effort you put into your new business.

Aside from a change to your finances, you will also notice that the nine to five working day becomes a thing of the past. Particularly, if you are working online. There’s no more Monday morning rush to commute to the office because you could be running your business from home. There’s no need to work deadlines, and you can take holidays whenever you want. You’re in complete control.

What Do You Need?

Your first job is to figure out what your business is going to be. You need to consider what product or service you’ll be offering and who your target customer is. Are you a B2B business or are you selling to the general public. Once you have the basic idea, you can start to build up the business model. Will you be selling online or from a brick and mortar location? Generally, online is cheaper and more flexible, but you will need to get a firmer understanding of digital marketing practices if you are going to be successful.

Finance

Now that you have an idea let’s think about financing. You might have read articles online about how you can set up a business with no money in your bank account. Technically, this is possible, but it’s unlikely that a business will be successful with no financing. After all, there’s a lot you’re going to need from marketing services to web design and data security. Remember, these days, every business owner is responsible for ensuring they are compliant with the standards of the GDPR. This isn’t a cheap consideration. The general rule here is you need a few thousand for an online company and double the budget for a brick and mortar business.

Usually, this means borrowing. But there are plenty of lenders that offer business loans for self employed people to help you get on your feet. You will need to compare these and find out which one is offering you the right levels of interest and the most manageable payment plan.

Once you have financing, marketing should be a top priority. It is crucial that customers know your business exists and that they like what they see. Ultimately, your company needs to look professional. It has to look like it is already a success, and the right marketing campaign is key to solving this issue.

What Are Your Responsibilities?

This is perhaps the most significant change when you become self-employed and run your own business. You are responsible for a lot more, and the most basic example of this would be a tax. If you are running your own business, you are responsible for paying the right level of tax and ensuring that it is paid on time. Failure to do this will result in a hefty fine, and it’s common to hire an accountant to ensure you stay on top of financial issues like this.

Are you taking on employees? If you are, then you need to make sure that they are safe and that their wellbeing is protected, particularly if they are working from your business property. It is your responsibility to ensure a safe work environment for them. You can operate as a solopreneur, but then you will need to find the services you need elsewhere, investing in teams of freelancers or outsourcing companies. At this point, it’s about making sure that you are maintaining the level of quality your customers and clients expect.

Use this guide, and you should be able to navigate the first steps to going self-employed as well as some of the challenges that you will, undoubtedly, face.