Becoming self employed can seem like an attractive prospect; not having your own boss, working to your own schedule and running a business your way, however there are a number of things you need to consider before taking the leap. Main point being why it is you want to go self employed in the first place. It may seem the easier option when looking at your future career mainly due to the points listed above, but running and maintaining a successful business takes a lot of time, effort and hard work. You have to be dedicated and willing to put the time and effort in from the beginning.
If you are considering becoming self employed and you don’t already have an idea of what you want to do then it is worth choosing something that you enjoy, have skills in and won’t get bored of 6 months down the line. It takes a lot of hard work and long hours to build a business up so you need to make sure your chosen field is something you are passionate about and most of all good at.
Another very important thing to consider is how you are going to trade; either as a sole trader, limited company or a partnership. All have their positives and negatives so you need to pick one which most suits what you are looking for and the most appropriate way of trading for your business.
Your financial circumstances also need to be taken into consideration, you will need enough money to start up the business and keep it going, as well as having money to live off whilst you are building your business up. There are banks and building societies that do give out loans but you would have to prove that you are a suitable candidate and would meet the banks criteria to qualify for a loan.
If you are considering going self employed it is worth finding an accountant relatively early in order to have somebody experienced you can go to for advice on the best, most tax efficient way to trade. If you join with an accountant early on they will be able to help you with any problems, give advice on the best steps to take and take care of all your accounts and tax returns for you from the beginning. Therefore, they will have a good knowledge of you and your business. Having somebody experienced in business you can go to for help is invaluable, especially at the beginning when you are still in the process of building your business up.
If you are considering self employment and want to know whether its worthwhile for you or would like any help or advice on starting up a new business then please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.