Business

How to become Self Employed

Many of you will aspire to take the leap and make the transition from employee to employer for many different reasons. For example, some of you may feel like you are stuck in a restrictive, uninspiring role. Others will want to improve their financial status.

Unfortunately, for some, this aspiration will never materialise because they believe it will be a daunting experience that is just not worth the hassle. However, entrepreneurship does not have to be expensive or scary. In-fact, it can be quite the opposite and it will provide you with the opportunity to have autonomy, flexibility and financial stability.

If you aspire to become your own boss, do not let money hold you back. Especially if you are prepared, understand the logistics involved and are entirely dedicated to your vision then becoming self-employed will be an exciting, life-changing journey.

Five Simple Steps to Become Self Employed

Taking control of your employment by starting your own venture or freelancing is far easier than you may think and we will show you how below.

Step One – Self Evaluation, finding your ‘WHY’.

The prospect of leaving full-time employment enters many of minds, especially when you are not receiving acknowledgment or recognition for your efforts, or when you’re unhappy in your role. However, job dissatisfaction should not be the only reason you want to become self-employed. Along with having a viable business idea or skill set, you must have the desire to become self-employed – This will be your ‘WHY’.

The best place to start is with yourself. Ask yourself ‘Is this venture what I want or need?’ and ‘What is my current situation?’

Step Two – Business Ideas

Once you have identified that self-employment is the next logical route for you, start looking at business ideas. Begin by analyzing any sellable skills that you may have, even if they’re not related to your current profession. Having a basic or extensive understanding of your chosen market is essential.

Start by listing the industries or services where you have existing knowledge and interest. The type of service or industry is entirely your choice – this is the beauty of self-employment. We advise drawing up a list of as many ideas and ask yourself these two questions:

  1. Are you passionate enough about this product/service to commit yourself completely?
  2. Do you understand your market (i.e., competitors, target customers, etc.)?
  3. Is it profitable?

Generally, profitability is a driving force for many individuals who seek self-employment. Profitability can only be achieved if you are able to “see the big picture” during these initial stages.

Step Three – Commit to your Decision

You must be confident with your decision to begin to manifest your idea into a fully-fledged venture.

Now, it is time to start looking at the initial start-up costs (which will vary if it is a product or service).

Although, funding is fundamental to founding a business, it doesn’t always have to be a substantial upfront cost, even if you’re providing a service. One prime example is the owner of Amazon Jeff Bezos, who started out in his garage and is now the wealthiest man in the world.

Step Four – Take the Plunge

This step is where your vision becomes a reality, and your exciting new business is legally founded. Depending on where you live, there will be different business/ company structures your business must take in order for it to operate within the law.

For example, in the US, there are four ways that you can legally start a business:

  1. Sole Proprietorship
  2. Partnership
  3. Limited Liability Company (LLC)
  4. Corporation

To fully form your business, you will need to ensure you are aware of all/ any legal requirements such as licenses/ permits etc. Be sure to be aware of and understand all the legal requirements!

Also, sort out any third party contracts/ vendors such as suppliers, accountant, website, market research, etc. to ensure an efficient and effective transition.

Step Five – ‘Open for Business’

Once you are confident you have the correct legal documentation, third party arrangements and are happy with your product, you can officially open your business.

The Take-Away

The primary aim of this article is to show that achieving your goal of becoming self-employed is much easier than it seems. Ultimately, you need desire, the skills, a killer idea, and passion for achieving success!