How to Become Self Employed
For many people, starting a brand new business and not answering to the boss is the ultimate dream, and knowing how to become self employed is the first step to making this dream come true. Being a visionary and self-disciplined person and having a well-positioned business plan, you can achieve outstanding success by becoming self-employed.
7 Things to Consider Before Becoming Self Employed
Whether you want to start freelancing with no experience or plan to become an entrepreneur after a few years of on-job experience, starting a new venture and becoming self-employed requires few commitments for success.
Make sure you understand the following four concerns and have thought thoroughly about each before pursuing your dream of becoming self employed.
- Must take the responsibility of your business’s success or failure.
- Know and be sure where and when you do your work.
- Understand that you will be hiring other people at your own expense.
- Know what goods & services you will be selling to make profit, and devote yourself to do the best. If you are not passionate about goods or services you plan to sell, it’s probably not the right idea to pursue.
- Things may not go as smooth as you planned, and there can be unforseen challeneges which you must face and resolve.
- There can be failure of some plans and some strategies, and you must be resilient.
- You must know and understand the growth prospects of becoming self employed. There can be increase responsibilities and workload as you grow as a self employed person, so you must know how to plan scaling your business accordingly.
How to Become Self Employed in 5 Steps
If you know that you would like to become self-employed but wondering how to become self employed? Not to worry: here are a few steps that will take you from “thinking about it” to “doing it”.
1- Do the Research
The very first step to solve your query “how to become self employed” is to do the research; find out some profitable self employment ideas, and select the one that you are most confident in pursuing. While doing research consider:
- What will be your area of focus?
- What your product/service will solve?
- How will you meet people’s need in a new way?
- Where they approach (online or real world)?
Consider profitable business options and invest in systems that will work for you for becoming self-employed successfully. You may want to explore this list of highest paying jobs without a degree; most of these jobs can be great self-employment ideas.
Exploring some of the best freelance websites for beginners is also a good way to see what products and services are in demand.
Make a list of ideas you like the most and narrow it down and get as specific as possible about what you can do best.
2- Make a Business Plan
Starting without a detailed business plan is like going on a trip without a destination in mind. You must need to know your long & short-term goals. Here are a few things you should include in your business plan.
- Business Description.
- Permits & Licenses.
- Target Market.
- Marketing Plan.
- Employees & Management structure.
- Financial Documents.
- Operating Plan.
Once you have developed a detailed business plan, you’ll spend less time struggling and more time working towards your end goals. But, just in case, you cannot create a detailed business plan, in the beginning, one page business plan is also a good way to get started.
3- Complete the Legal Formalities
Make sure to complete all the legal formalities when forming a business. The legal requirements depend on the type of business you open. you will need to get proper licensing and permits from your country or state and also check out your insurance options.
Here are a few common types of business formats you can use
- Sole Proprietorship.
- Limited Liability Company (LLC)
What Will you Need if Starting as a Sole Trader ?
- Apply for National Insurance.
- Register for VAT ifyour profit is over $85000.
- If you are starting in construction industry then register with HMRC for the Construction Industry Scheme (CIS).
- Register your name of business as a trademark.
4- Build your Business
One of the best things about becoming self-employed is that now you have so many options when it comes to how, when & where you’ll work. Once you have completed the legal formalities, it’s time to start executing your business plan.
You have a lot of freedom to use technologies to create websites with website builders like WordPress, Wix, Web.com, Hub Spot, etc. Make social media presence with Facebook, YouTube, WhatsApp, Instagram, Tumblr, etc. You can also use Paypal to accept credit card payments and stay on top of client payments & billing.
If you are starting a product-based business, you have complete freedom to create your own products or can acquire them from other established brands. You can also hire or outsource the workforce for your business.
5- Grow your Business
Growing your business is an ongoing process. Measure short & long-term goals from your business plan and tweak it as needed but stay flexible. Advertise & Market your business and let people know you are out there.
Also, take advantage of modern apps and tools that will help you in growing your business.
Summing up How to Become Self Employed
Now you know how to become self employed, and you understand that the idea of becoming self-employed can sound overwhelming & expensive but it can also be interesting, exciting, and fun if you know what to expect and what you are doing. Do remember to focus on the fundamentals and begin by taking stock of yourself and your situation.