Being self-employed is something that’s on the rise at the moment. The pull of the freedom that it offers combined with a shortage of secure work is responsible for this. Here’s how to succeed as a self-employed worker.
1. Keep Up to Date Accounts
When you’re self-employed, it’s a good idea to keep the money you make from your work separate from your personal finances. This is why I’d recommend setting up a business bank account, so things don’t get confused. You will also need to make sure your accounts are kept up to date at all times. This will make it much easier for you to manage your transactions and run your operations properly. It will also mean that you will know exactly how much tax you have to pay when the time comes to do so.
2. Plan Your Schedule
Just because you’re self-employed, that doesn’t mean you have to be available to clients and customers 24 hours a day. It can be pretty difficult to separate your home life from your work life when you employ yourself. When you work for someone else, work ends when you leave the office. But the line starts to blur when you work for yourself. This is why you should plan your schedule and set pretty strict limits on your time. You could make a rule that you won’t focus on work after 6 pm, for example.
3. Get Insurance
There are lots of different types of insurance to consider when setting up as a sole-trader. When you’re self-employed, it’s regarded as running a business even if you’re working alone. So, you might want to get business insurance to make sure that your assets are secure. This will help you in the event of a theft or another kind of catastrophe. Those kinds of losses can hit hard when you’re self-employed, so insurance can help. And if you start to expand and hire employees, you’ll be required to take out an employer’s liability insurance policy.
4. Use an Umbrella Company
One option to consider instead of setting up your own company is using an umbrella company. Umbrella companies make it much easier for you to be self-employed because they take care of a lot of the difficult stuff for you. They make it easier for you to claim back certain expenses, and they’re easy to set up in a matter of minutes. All you need to do is give the umbrella company the information of your timesheets and expenses. Once that’s done, you’ll be up and running.
5. Know the Drawbacks
Before you decide to become self-employed, you should make sure that you know exactly what you’re getting yourself into. There are plenty of good things about being self-employed; you get to be independent, and you can work flexibly to suit your own schedule. But there are plenty of drawbacks to it as well. So, what are they? Firstly, you have to deal with your own tax obligations, which can be frustrated. You also won’t have any of the benefits and safety nets that come with ordinary employment.