So you want to be self employed
Posted on 23rd June 2020 at 15:02
So you want to be self-employed?
The pros and cons and what they don’t tell you…
Setting yourself up to be self-employed is easy. By quarter 4 in 2019 there were 5 million people self-employed – representing 15% of employment. If you’re thinking of starting your own business – there is no better time than now! Seriously, global crisis, pandemic, sunken economies, isolation, uncertainty…what the heck. Get over your fears? Tell us: when is a good time then? There is always a reason ‘not to’ – we’ll get to those…For now, why would you?..
There are plenty of reasons to be self-employed:
1) You get to be your own boss and work more flexibly. You can (with discipline) fit your work around your life – rather than continually working to live! Being in control when you have other commitments: childcare, aging/frail relatives, competing demands on your time
2) You may be able to command a much higher rate than the salary you’d be able to achieve as an employee
3) Allows a ‘portfolio career’ where you get to work on multiple distinctive areas, several different projects or a diverse set of clients at any one time
4) The satisfaction of building your own business and playing out your entrepreneurial side. You can explore the endless creative possibilities that you’ve dreamt of since being a child and growing into the person you are today
5) You can work certain costs to your advantage by deducting them from your income (e.g. travel, expenses and some utilities bills). This all helps when calculating your tax
6) Depending on your sector, perhaps you will not have to travel so far to get to your place of work
7) You can pick and choose who you work with – and get rid of working for a rubbish boss
But, it’s not all a bed of roses. (As if a bed of roses is a comfortable place to be – we have first hand experience of being hospitalised by a rose thorn!). There are some considerations to think through before you take the plunge:
(Another set of 7…we LOVE sevens! 😊)
1) You’re suddenly peddling your own boat and finding clients or an initial route to market can be challenging
2) When you’re self-employed, it can be difficult to separate your home life from your work life and achieve a good work-life balance. What you originally set your business up for (to save time, be around family etc.) suddenly gets worse. Make no mistake: when you run your own business, it IS your life. The admin, the bookkeeping, the sales, the marketing, the strategies to grow your business all stops with you. You just have to be mentally strong and have your eyes wide open
3) You may need some money to get you started – just to cover start-up costs, or provide a backstop for a period until things really get going
4) Cashflow WILL be an issue. Get over it. It will. You need to be able to manage this. You’re suddenly not on a regular income that a salaried job offers so your income isn’t guaranteed. which can sometimes make it hard to keep up with rent or mortgage payments, loan payments and living expenses
5) You are completely responsible for the success or failure of the business, it’s down to you – and it can be a lonely place
6) You won’t get paid when you take a holiday or if you can’t work because you’re unwell
7) Unless you have reliable accounts, it can be more difficult to get approved for renting property, taking out a mortgage or getting a loan when you’re self-employed
We can help you with ALL of these! We can give you checklists, put you in contact with all the right people, help shape your thinking and give you the skills and confidence you need.
Why not check out our website or join our business Gamechanger Kickstart Programme? Join hundreds of others in successfully launching your own business. Build Your Business Training will help you.
Tagged as: Starting a new Business
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