5 Things to Know Before Going Self-Employment

The idea of becoming self-employed is so exciting for many people. You get way more control over your schedule and the opportunity to build something of your own.

But self-employment is about so much more than simply leaving a traditional job and becoming your own boss.

There are things that you need to understand before you make the leap. Knowing what to expect will help you to prepare for the challenges that are ahead of you while making the most of the opportunities that come.

1. You are responsible for the paperwork

One of the biggest adjustments for a new business owner is handling their own admin. Invoicing, bookkeeping and understanding requirements like Making Tax Digital for income tax self-assessment become part of your regular responsibilities.

Paperwork may not be the most exciting part of it, but staying organised saves you a lot of stress.

Good record keeping from day one makes managing everything easier, from your finances to your clients and it helps you to avoid those last minute scrambles when deadlines approach.

2. Income may not be consistent

Most people forget about this part, but unlike traditional employment, self-employment often comes without income fluctuations.

This is frustrating and annoying, but you might have months that will be incredibly busy, but other months can be quieter. This unpredictability is normal, particularly during the early stages of a business.

But if you have a budget and an emergency fund behind you, that gives you some stability when the income is going to vary.

Many successful business owners learn to plan ahead and prepare for both busy and slow periods.

3. You’re about to wear many hats

When you first become self-employed, you’re not just the person delivering the service on a product, you are the product.

You’re the marketer, the administrator, the customer service Rep, the salesperson and sometimes even the IT department.

It’s exciting to have that much variety, but it’s very overwhelming at the beginning. Learning where and how to prioritise your tasks and manage your time effectively becomes very important.

Most of these skills will improve with experience, but it does take time to get there.

4. Finding clients does take effort

Many people assume that once they launch a business, customers will flock. Unfortunately, it really works out that way. Building a client base usually requires marketing, networking, referrals, and consistent effort on your part.

Even businesses with excellent customers, products or services need visibility to attract them.

Developing strong relationships and delivering excellent service will help to generate repeat business and valuable word of mouth recommendations.

5. The rewards can be worth it

Despite the challenges, self-employment offers rewards that many people find satisfying. There’s a unique sense of accomplishment you can’t achieve in an office.

You have a lot more control over your direction. And while there will undoubtedly be difficult days, there’s also going to be tremendous pride in watching your business grow, and you’ll have a hand in that.