“In order to succeed, your desire for success should be greater than your fear of failure.” – Bill Cosby
Everyone can’t be self-employed. As compared to traditional job, being self-employed is riskier. People engaged in their own employment generate income by operating a business or trade. Self-employment (or freelancing) doesn’t necessarily mean owing a business. Several freelancers carry out routine operations of the business, either as line workers or managers or both.
Here are some important steps that you should go after to take the risky plunge into self-employment.
1. Scrutinize Your Ideas
You might have several ideas to be self-employed. Pore over your ideas and choose the best one. Give your best to convert that idea into a reality.
2. Plan for Excellence
Treat your self-employment as if you are establishing a new business. A good plan would help you in raising funds from investors or bank, for setting up your own employment. Determine your mission and vision. Identify your target customers, competitors, expenses and budget.
3. Create a Brand
Coin a good name for your business. Distinct logo also helps in creating brand value. Embrace your business name in a website’s URL and all your Stationary. Use your business name for opening a bank account.
4. Legal Conformity
Before commencing your work, ensure that you have a licence or legal permission to carry out the work. Confirm to safety regulations and consider professional indemnity and public liability.
5. Establish a Workspace
You can begin your business from your own home or you can rent or purchase an office to carry out your day-to-day operations. Your workspace should be in proximity with your customer base and must have all the requisite facilities.
6. File the Tax Return
Before commencing the business, make your mind up whether you will be a limited company, sole trader or partnership. Once you have decided, register your business. Remember to file the tax return each year.
7. Insure Your Business
To cover the risk of unforeseen circumstances, insure your business. You should consider the following covers:
- Employer’s liability– In addition to yourself, if one or more employees are working under you, it’s mandatory to take this cover. It’ll help you to recover the cost, in case your staff becomes injured or ill at work.
- Public liability– Sometimes your business activities, might have injured a third party or caused damage to their property. You may be sued by that party. So, play safe and take up this cover.
- Professional indemnity– Your client may take legal action against you if he/she suffers any loss due to your advice or negligence in your work. This cover protects you from such circumstances.
8. Consider Financial Issues
To keep your business on track, have an updated financial plan. Calculate the capital required, to begin your business and sources for raising the funds. Determine your expenses and keep all the accounting details in record.
9. Marketing Yourself
The above mentioned steps are of no use if nobody knows your business. Only advertising will help you, to promote your new venture. Create your website and describe in details about the products or services offered by you. Use social media sites to market yourself.
Self-employment doesn’t mean overnight success. You must have patience and capacity to bear the risk, associated with it.