A Brief Guide to Preparing for Self-Employment
A lot of people dream of starting a business, but not everyone takes the steps to make this a reality. There are certain benefits to working for someone else that can offer security; and with the risks that come with self-employment, it’s understandable why people don’t.
However, if you are one of the individuals who have decided to take a chance on yourself; and move into the self-employed realm, there are certain things you need to be prepared for. While this venture could be the best decision you have ever made; you need to be smart to ensure that you’re in the best position to make your business a success.
Below is a brief guide to help you make the move into self-employment; whether you’re choosing to work as a freelancer or start a small business enterprise.
Do Your Research
If you want to ensure you’re the most prepared you can be going into your new venture; then thorough research beforehand is vital. This is important for freelancers and those starting a business, as you will need to understand the competition; and how you can make your services/products stand out. Furthermore, you will need to determine whether or not your business idea is viable in the current economic climate and if this is the right time to start your venture.
Market research is key, but if you are going to start a small business; and hire employees, you should also make sure you understand your legal obligations as an employer. This includes how your business manages pension schemes, HR responsibilities, sick pay, etc. You should also consider how this could affect your personal taxes if you are paying yourself a salary through your business or need to carry out a self-assessment.
Consider Hiring an Accountant
You might also want to think about hiring an accountant to help you with your tax returns each year, especially if this isn’t something you’re used to doing. While you can deal with your tax returns yourself, an accountant will know how to do this correctly and with ease. Furthermore, your accountant might be able to offer some guidance on how you can save on certain expenses for both freelancers and small business owners.
Make Sure You’re in a Healthy Financial Position
Your financial health is another key issue to prepare for before you move into self-employment. This is particularly important for freelancers who may not necessarily have a steady income until they establish regular clients whom they receive consistent work from. Moving away from a monthly paycheck can result in financial upheaval, so always carefully consider your financial health before you move into self-employment. Look at your savings and think about how long they will last and if it’s enough to cover emergency expenses should you find yourself earning less than expected initially.
If you are starting a small business, you will still need to be mindful of your financial position; and how this will impact your goals. You might find that applying for a small business loan can help you with the initial expenses of incorporating your business. There are also loans for small business owners that could help them with personal costs; such as support for a mortgage on their home. If you’d like to see more of what’s on offer in terms of this kind of financial help, visit Bell Partners Finance.
Time Management and Work/Life Balance
Starting a new business or establishing yourself as a freelancer will require a lot of time and dedication. Even if you already have years of experience in your field; going out alone means you will have to commit a lot of time to meet new potential clients, build a portfolio as a freelancer; or showcase your professionalism as a new business owner. You need to be prepared but put the time in to establish your freelance career/new business; so consider how this will work around your other commitments and if it is viable.
While hard work and dedication are important when you’re self-employed; you do need to make sure you can manage your time effectively for a healthy work/life balance, too. Make sure you are setting yourself reasonable office hours suitable for you; and the kind of work you do so you can maintain this balance.
If you are interested in becoming self-employed; make sure you’re prepared for this change in your career and the challenges that come with it. This guide just highlights a few key points to consider, and hopefully, will help you succeed in your new venture.
