Becoming self-employed is a bold move to make, I know because I have been there. More and more people are going down the self-employed route these days, so there’s clearly something in it! However, just like with anything else, it can also be a foolish move to make if you don’t know what you’re doing!
Don’t let fear and apprehension hold you down; there’s a lot of opportunities to be had. If you’re going to make moves in this arena, then it’s important you’ve got the know-how to see you through those first hurdles you’ll encounter.
Consequently, here are some useful tips for you to take stock of when it comes to starting a new self-employed business.
Self-employed businesses can’t just pop up out of nowhere and get straight to work. To operate safely and legally, you need to register with HMRC to legitimise your operation. This makes you liable for tax payments and helps the higher powers that be know your employment situation too.
Depending on what kind of self-employed business you’re running, you may also need certain insurance plans to ensure your business is operating with licence too. If you’re handling food or hiring employees, you will need various kinds of cover that protect your assets and people. Make sure all your admin work is sorted!
Have Other Income
For most people, becoming self-employed is a rocky road indeed. Doubt, swirling complexities and worry can plague your mind at every turn. Moreover, financial troubles can arise too; when you’ve started out, no one knows who you are. It’s a tough pill to swallow, but to begin with, you’ll have few customers, clients and thus little profit, if any.
It’ll help you greatly if you have another income on the side; whether you have properties to rent out or a part-time job to work. Put simply, ease into the transition of becoming self-employed, especially in terms of your finances. If you have another income, you’ll be able to support yourself through those tough earlier years, and eventually, ease off that other source of money as your self-employed venture grows.
Minimise Your Budget
The saying ‘try not to grow up too fast’ is applicable to self-employed businesses too. In order to succeed, your self-employed venture needs to steadily evolve from strength to strength. Therefore, you should absolutely avoid pumping all your assets into your project right out of the gate.
Hold back, act strategically, and grow your self-employed business organically by minimising your budget. This way, you won’t be tempted to overspend on your efforts, and you won’t underestimate the power of customer or client satisfaction. For example, you can open an online account with Think Money to keep your finances watertight, ensuring that you never get ahead of yourself. Remember, Rome wasn’t built in a day!