Starting a new business means there’s suddenly 101 things to think about, and a ton of new responsibilities to factor in. In this post, we want to highlight four of the top ones – all of which are often underestimated by newly self-employed business owners.
Now, this may sound obvious at first. If you’re your own boss, then of course you’ll have a responsibility for your income. You will have to pay yourself.
Being responsible for your own income also means having to think carefully about your business model and offerings if you want a sustainable income.
There are ways to increase sales such as advertising and marketing, but these both require money to be pumped into them. You will need to maintain a fine balance between investing in growing your business, and building profits.
Given that your income will fluctuate, it’s a good idea to have some kind of emergency fund set up while you find your feet. This gives you a financial safety blanket.
Tax and pensions
Aside from making money, you will also need to think about tax and pensions too.
Firstly, you need to make sure you’re keeping financial records of transactions (bookkeeping) and are preparing accounts for Self Assessment so you can pay tax. Software such as Pandle is useful for helping you keep on top of your transactions and invoicing.
You need to have a stable customer base to succeed. This means that managing client relationships and making new connections becomes paramount. While you are your own boss, you’ll still sometimes have to bend to the will of others, through customer demands, meeting tight deadlines or responding to complaints.
While employed, you have been used to someone else handling all this for you and taking responsibility, but now it’s all on you. You’ll need to step-up and sharpen those people skills in order to succeed because keeping your customers happy is key to sustained success. We all know that bad news travels far faster than good news when it comes to customer reviews.
It would be worth taking a look at CRM software once your client base starts to grow to help you manage everything as effectively as possible.
Managing your time is one of the biggest difficulties of self-employment.
Instagram and YouTube paint the self-employed lifestyle as one of free time, coffee breaks and going to the gym twice a day. Unfortunately for a lot of people, it’s just not realistic to do all those things while managing a new business.
This might be your overall goal for the future, but when starting out, you may have to put all that on hold while you build your new business.
Building a business requires a lot of hours being put in and you may need to make some sacrifices. The main one is your free time. A lot of entrepreneurs find that they struggle to make time for friends and family because they’re so busy.
However, it’s still important to make time for others and not get too sucked into the world of self-employment. It will take some experimentation to find a good, healthy balance to time management.
With a new business comes a whole range of responsibilities many aren’t prepared for. It’s not just a case of setting up shop and waiting for the customers. However, there is help at hand.
You can enlist the help of an accountant to give you advice on finances. This will take a huge weight off your shoulders and free up your time to spend on other aspects of your business. Get in touch with The Accountancy Partnership to learn about our accountancy services and to get a free quote.
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About The Author
A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.