If you have taken the plunge and have become self-employed, or you are thinking about it, then we have some tips for you. It may seem like a daunting prospect that you don’t have a manager to fall back on, but as long you have done your research and are confident in your business model, it doesn’t need to be stressful.
Below are our top tips about everything you need to know when it comes to self-employment.
One of the biggest pros to becoming self-employed is the work-life balance. When you are your own boss you can decide the days you work and the times you start and finish. This is great if you have a family, or you are simply tired of working the regular 9-5 as you can decide when to switch off.
While this can reduce stress and make working more enjoyable, being self-employed can sometimes have a negative effect too as you may find yourself overworking as it’s your business which can lead to stress and reduced energy levels. Before you start your new career, you should have a plan to find the perfect balance to suit your lifestyle.
There are start-up costs
Another element you need to consider is the start-up cost. When you work for a business you will be provided with all of the equipment you need to do your job, but when you are self-employed, you are responsible for everything. Depending on the industry you’re in, you will need specific equipment, but generally, all businesses will need to think about buying a laptop or desktop computer. Don’t forget to budget for this and for any software you may need too.
Don’t forget about tax
While being self-employed can make life a little easier thanks to being your own boss and deciding your own hours, it does mean you are fully responsible for filing your tax forms. If you are unsure how to do this, you should invest in either a system that walks you through it or hire an accountant to help. Hiring an accountant will come with a higher cost, but there are kits available to make filing your taxes much easier so you can avoid that cost.
Your pay may be irregular
One of the biggest things you need to consider when becoming self-employed is that your pay me be irregular. This means you could struggle to get a mortgage or borrow money as your salary may vary. This will require more planning, but over time, you may see a regular income as your business grows and you become more experienced in handling your time, workload and finances.
While being self-employed brings with it many challenges, it also offers a chance to make the big decisions and decide what’s best for you and your career.
To read more on topics like this, check out the Business category