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What You Need to Know About Becoming Self-Employed 

Have you always had the ambition to become self-employed? Many individuals believe that this style of working provides many more benefits than standard employment. This is especially true for parents, as you’ll essentially become your own boss and choose working hours to fit around your responsibilities. However, the harsh reality of self-employment shouldn’t be overlooked. You’ll be accountable for your own success and finding work, which isn’t always guaranteed. You will also be responsible for legal aspects such as registering your business and paying taxes. If you are considering becoming self-employed in the near future, here are some of the aspects you need to know before making the decision:

The costs

Many substantial costs come alongside being self-employed which you may need to evaluate. Before you make any moves,you’ll need to think carefully about the initial expenses which will turn your seed of an idea into a fully-fledged business. Do be aware that any costs will be paid out of your own pocket and will not be reimbursed, so it is better to be frugal when it comes to spending.

Some of the most common start-up costs to keep in mind include:

  • Renting an office or warehouse space
  • Equipment and machinery
  • Stock and supplies
  • Hiring staff
  • Hiring an accountant 

You may have personal savings to cover the set-up costs, but there are also several funding options you may wish to research in further detail to get your business up and running, including bank loans, payday loans, and angel investors.

Sporadic payments 

If all clients were honest and reliable, being self-employed would be a breeze; however, you’re likely to come up against difficult clients who fail to pay their invoices on time – or even at all. This can be stressful when you have both business and personal bills to pay and, in time, can lead to serious cash flow issues. As a result, you may need to set up a ‘buffer’ fund to support when waiting for late payments to come through. In worst-case scenarios, you may wish to seek commercial debt recovery services to help you get back on track.

Long hours

In the early days of becoming self-employed, you will have to expect your working day to be much longer than what you may have been used to whilst employed. While you should have a ‘clock in’ and ‘clock off’ time to help you achieve a work-life balance, you’ll be juggling multiple plates throughout the day,which may mean starting early and finishing late. In this case, you may find it a challenge to separate your home and business life – especially when working from home. In this regard, you may want to think about outsourcing tasks to help free up your workload and give you more time to spend with the family.

Self-employed is an extremely exciting venture, and in time, you’re likely to reap the rewards of your hard efforts. However, we hope this blog has given you an insight into the realities of self-employed life and whether it is the right decision for you at this present time.