Going Self-Employed ? A Few Handy Hints

The day you decide to take the plunge and work for yourself will be one of the most life-changing choices you ever make, whether starting a company large or small or as a freelance; from the very first moment of being self-employed, you and you alone will stand or fall by your decisions and actions. You will be responsible for steering your business through all its ups and downs, good times and bad times with no guarantee that everything will turn out right in the end.

When you are in charge the buck stops at one place. There is no management line to help with complications; no colleagues to share the blame for mistakes, there is only you to deal with any problems that crop up, only you to decide how those problems are dealt with, and only you to face the consequences of your decisions whether they turn out to be right or wrong. Whilst there are many pitfalls and worries in running your own business, there are by contrast also times of extreme satisfaction, personal achievements, financial rewards and periods when everything runs to perfection ? it's not all doom and gloom but it is most certainly very hard work.

There are important issues to be considered by anyone thinking of becoming self-employed and all of them should be given very serious thought. Assuming at this point that you know your chosen field of expertise enough to go it alone, sufficient time to plan the setting up of your business is vital. This part of the process may be a tedious and drawn-out exercise but it is necessary to try and ensure the smoothest possible start to your venture.

The most immediate priority is of course money. When you start working for yourself it is recommended that you have enough funds to support you (and your family if applicable) for at least three months, by which time you should hopefully be generating an income from your business. However, saving this amount of money would not be an easy task and so a great deal of forward planning and patience is an absolute must if you want to make it a viable alternative to a bank loan, especially if you have already borrowed money to start the business.

It is worth bearing in mind that a vast number of companies have a 'cheque run' on a designated day of every month to pay their suppliers. If you miss this day because you did not send your invoice soon enough you will not get paid until the next cheque run. Experience has taught me that companies will rarely if ever deviate from this rule. It is in your best interests to send invoices as soon as possible; too late and you may have to get by for a month with little or no income.

A must-have for any business is a good accountant. How you choose one is usually a matter of pot luck or a referral from someone you know, the latter usually being the best way to find one. Whilst accountants are not exactly inexpensive, they will save you money in the long term. It would be a huge mistake to think that you could do their job better or cheaper than they could ? unless of course you are an accountant yourself.

Many a person has tried to do without one to save money and have found themselves having all sorts of problems with the Inland Revenue because they have not filled in their return forms correctly or have made glaring errors in their accounts. It is worth noting however that there are also the odd few small businesses whose financial arrangements are so straightforward that they can get by without an accountant although this is generally not the norm.

Opening a business bank account can be a helpful factor in running your new enterprise. It would be a wise precaution to keep personal finances separate from your business ones and a business bank account will enable you to do that. There are no sinister motives here; it simply makes sense to track and maintain company transactions from a dedicated account rather than having to identify and separate them from a statement that contains your personal banking details as well.

A useful point to bear in mind is that a good working relationship with your bank manager is an asset to any business large or small. A new business will find help and advice from their bank manager invaluable. There must be give and take though; you do have to be honest with the bank. If you are experiencing financial difficulties in business, don't try to hide it ? inform the bank as soon as possible, they can then decide how best to go about solving the problem quickly.

With your chosen accountant acquired and your business bank account open, two key components of your enterprise are now in place. Other things to think about are premises, equipment, supplies or maybe staff. As the principal character in your new company only you will know what other requirements are needed to complete your set-up in order to commence trading, and no doubt have been giving a serious amount of thought to these particular matters.

Apart from the points already mentioned there are a myriad of other considerations involved in setting-up your business. All of them must be addressed at some point but obviously in order of importance. At times all this may seem like an insurmountable task, but the very fact that you made the decision to work for yourself means that you possess the determination and drive needed to see it through.

This article is the property of the author and may only be reproduced in its original form.

John Sheridan is a professional proofreader of hard copy items and website copy. He also writes web copy and occasionally accepts small copy-editing assignments. He can be contacted at: john@textcorrect.co.uk website: http://www.textcorrect.co.uk

---

Succession Planning: Problems Getting Started

A survey released by the American Institute of Certified Public... Read More

Are You Aware of Planning in Business?

Human beings are rational agents. Rationality endorses one to take... Read More

Vision Getting Dim?

A recent conversation started with a typical question, "How's business?"... Read More

A Backup To The Internet Is Vital & Now Cost Effective

It doesn't take a Terrorist Act, Tsunami or Earthquake to... Read More

SWOT Analysis

If you've ever listened to Warren Buffett talk about investing,... Read More

Creating a Vision That Achieves Results

How important is a vision statement to your company or... Read More

Microsoft Great Plains in Advertising & Publishing ? implementation highlights

Microsoft Great Plains, former Great Plains Dynamics is excellent fit... Read More

Business Strategy Planning Made Easy

Ask Yourself three simple questions that affect your strategy planning...... Read More

Bounced Checks in Your Business Location Outlets

The new check cashing instant clearing will take some time... Read More

5 Strategies That Will Boost Your Business Productivity Today! - Part 2

Growing your own small business can be one of the... Read More

Documenting the Exit Strategy in Your Business Plan

All investors greatly desire and are motivated by a clear... Read More

10 Critical Facts to Put On the Cover of Your Business Plan...

In most business plans, no matter how striking the idea,... Read More

Business Plan Long Term Goals

Writing a business plan is not an easy endeavor, nor... Read More

Microsoft Great Plains Implementation: Placement/Recruiting Agency example ? overview for consultant

Microsoft Great Plains does wonderful ERP job for horizontal markets... Read More

Seasonality: Whats the Big Deal?

Do you work in or own a business that's affected... Read More

Communication Strategy During A Time Of Strategic Planning

"Rubbish!" shouted the large, aggressive man in the red-striped shirt... Read More

Hunters and Gatherers - Are You Serving Both Their Needs?

The University of Exeter in the United Kingdom recently published... Read More

Breaking the Growth Barriers in the Information Technology and Software Sector

There's nothing automatic about corporate growth, particularly in the information... Read More

Making a Decision to Outsource: Strategic Constraints

Many companies are reluctant to dive into outsourcing ocean because... Read More

Balanced Scorecard Strategy Map

With the help of balanced scorecard strategy map, it is... Read More

What Every Service Provider Ought To Know About Writing A Business Plan

It's easy to lose sight of what needs to be... Read More

Who is Responsible?

While writing an article recently on effective ways to bridge... Read More

Ten Steps To A Great Strategic Plan

Ask a small business owner about their strategic plan and... Read More

The Top 10 Priorities That Guard Your Five-Star Reputation

Making money doesn't make your reputation... your reputation makes you... Read More

Top Ten Reasons To Create A One Page Business Plan

There is a story, about a business owner who wasn't... Read More

Innovators Role at Hard Times

One Research Scientist at the Hewlett-Packard (HP) Imaging Systems laboratory... Read More

Business Plan Financial Projections: Stop Worrying About Being Right...

Business plan financial projections seem daunting because they are so... Read More

Insurance Requirements in Franchised Companies

Franchised companies often require what some believe to be excessive... Read More

Invalid Excuses for Poor Business Results - The Economy

Note to Rite Aid and CVS: It's not about the... Read More

Clearing the Path: 4 Ways Fear Wreaks Havoc on Your Dream and What to Do About It

Please take a moment before you read any further and... Read More

How To Prepare A Business Plan That Guarantees Big Profits

It is always said "If you Fail to Plan, you... Read More

The Top Ten Rules of Effective Networking

Many of us are discouraged by the networking events that... Read More

Be Like Bill - Think!

Twice a year, Bill Gates goes to a remote island... Read More