The self-employed workforce is growing, with more of us deciding to take the plunge and make our business ideas a reality. Many benefits come with deciding to work for yourself, from increased flexibility to suit your lifestyle and the fulfilment that comes with doing something you love every day. Read on to find out more about becoming self-employed and how you can make the best of it.
If you’re recently self-employed and looking to finance your business, you could try a mca loan to free up cash flow and allow you to prioritise your bills and other necessary expenses.
Benefits of becoming self-employed
If you’re thinking about becoming self-employed, you may be choosing to do this because of some of the following factors that come along with it, such as:
- Independence: Working for yourself means you can choose how you want your business to run. You make all of the decisions when it comes to making your chosen business idea a success.
- Flexibility: Because you have control, you can choose when and where you work which means you can adapt your work to fit your lifestyle, for example around childcare or other commitments.
- Save money: Working in a corporate office or workspace usually means you will have to spend money to do so, whether that is on petrol, transport fees, lunches, and dress code. You can save money by working from home.
- Fulfilment: Deciding to make a hobby or something you love into a full-time job means you’re more likely to feel fulfilled creating a business that you believe in and are invested in making a success.
If you’re considering becoming self-employed, there are a few factors to consider; read on for a few tips that could help you if you’ve decided to go it alone!
Your Business Idea
When deciding to go self-employed, you’re going to need to have an idea of the niche that you’d like to go into. Choosing to be self-employed simply means that you’re going to be working for yourself, so you could choose a career in something you’re already trained in but offer it as an independent service rather than as part of a company, or if you’re ready for a change, you could leave behind your current career and start a business of your own.
Knowing the line of work you’re hoping to get involved in is the first step to becoming self-employed. This could be a hobby or something completely new that you’re training in – from here, you can begin to get your business off the ground.
Before you begin operating on a self-employed basis, you will need to inform HMRC of this. This means you can operate legally and stands you in the best positions financially too. Letting them know that you’re self-employed is simply a way of telling them you’ll need to pay tax through self-assessment. Failure to do this as soon as you begin working could result in you being fined, not to mention having to locate all your documents and accounts for them to sift through. Informing them of your new self-employed status can save you time and effort.
Business Bank Account & Expenses
When you decide to become self-employed, you must set up a business bank account. Not only will this make it easier for you to receive payments, but you can track your transactions, income, and outgoings with ease. When you become self-employed, you are the sole bookkeeper for your business, so it is essential that you can keep track of all payments that you make, as well as any that are paid to you. Keeping up to date with any account admin, as well as making a note of where and what you’re spending your money on, will make your tax return a lot easier to complete. Keeping transparent accounts means you can keep track of your money and keep the taxman happy!
When you work within a company, you are automatically entered into a workplace pension, in which you make contributions from your pay, which is then topped up by your employers. Choosing to go self-employed means you won’t have this pension payment each month, so it is worth setting up a private pension so that you can put money to one side for the future. This is important so that you can have peace of mind that you will have a lump sum saved when you decide to finish working and is a factor to consider when you begin your self-employed journey.
Once you’re all set up and running, you’ll be looking to make your business a success! There are a few ways that you can do this, but online presence is one of the most important. Choosing to utilise social media means that you can spread the word about what you have to offer, so you can attract new customers and clients. It also gives you a way of interacting with potential customers and allows you to keep them up to date on new products and services.
You should invest in a website to show potential clients what you’re all about, the skills you have and the services you offer. Investing in marketing means your business is more likely to gain momentum – connecting with customers and showcasing your products is a great way to get your business off to a great start.