Things to Consider When Going Self-Employed

Things to Consider When Going Self-Employed

Many people each year decide to challenge themselves and to go self-employed. And it's no surprise considering the joy a lot of them have and the success that it can bring with it. Not only are you your own boss and in charge of yourself, but it gives you freedom, flexibility and a greater earning potential. Turning self-employed could take your career to the next level!

Before going self-employed, it's important to do your research and put yourself in the best possible position to succeed. This involves making sure you have some savings behind you, having the correct insurance, investing in the correct equipment and that you have the right systems like your accounting software, CRM system, website etc. Below we look into four things to consider when going self-employed.

Purchase the right insurance

When going self-employed, you are liable for everything. For this reason, it's important that you do your research and purchase the correct insurance for your business. Different insurance could include public liability, start-up insurance, income protection or life insurance like the ones Shawn Meaike is in charge of. Some may be essential for your business whilst others may not be. For example, if you want to do something which involves the public, you will be required to have public liability insurance in case something unfortunate happens.

Have some savings

When you decide to make the leap and go self-employed, it's important that you have some savings behind you. It may take you a few months to earn a sustainable income and you will need to purchase equipment before launching. The more savings you have in the bank, the less stress you will have to make money quickly. Not to scare you, but some businesses can take up to a year before they start generating enough profit for you to live off.

Purchase the right systems

The systems you have in place at your business can be the difference between success and failure. Before launching, do your research and make sure you have the necessary systems in place. These could involve a CRM system to manage your clients, accounting software for your finances and a sales platform to keep track of your sales and leads. These systems can add up so try to not over-subscribe on ones that you will not need. Most will be a rolling contract allowing you to cancel after a month if you find you do not need it.

Set a budget for your equipment

Laptops may need to be purchased, new phones, stock and furniture. These all cost and can quickly add up to more than you would expect. We would advise you to put a Google Sheet doc together and set a budget for each piece of equipment that you will need before launching. This way you can easily keep track of your spending and stick to the budget you have set.

We hope the above four points help you before you go self-employed. What will your business be doing and how close to launching are you? Let us know in the comment box below.

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