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

---

Writing a Business Plan for Success in Business and for Funding

Writing a business plan to help you direct and manage... Read More

How to Achieve E-commerce Success ?You Gotta Plan!

Before becoming a netpreneaur, I was an entrepreneur. First, I... Read More

Could You Be Setting Your Business Plan Up For Failure?

David E. Gumpert, author of Burn Your Business Plan, often... Read More

Why Create an Annual Plan?

Can you imagine going on a road trip without knowing... Read More

Rules to Setting Business Goals and Objectives: Why and How to be SMART

We all know that nothing runs without a plan, and... 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

SWOT Analysis Is No Magic 8 Ball

Q: A key investor in my business has suggested that... Read More

The Top Five Reasons Strategic Plans Fail

"Most great plans aren't. They are just nice, high-level ideas."That's... Read More

More Uses for Your Business Plan

You have invested a lot of time and energy on... Read More

6 Changes You Can Make to Increase Business Profits

I read once that something like 30 percent of all... Read More

Balanced Scorecard Strategy Map

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

2 Simple Steps Before Starting Your Business

There is so much small business information available today that... Read More

Attributes of Companies You Dont Want to Buy!

There are no "rules of thumb" in the pursuit of... Read More

Strategic Planning Fundamentals

Strategic planning is vital while starting a new business or... Read More

The Top Ten Rules of Effective Networking

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

Family and Friends Referrals Make the Best Franchisees

As a franchisor it is imperative that you seek, find... Read More

Business Planning and the ?Bozo? Factor

"Bozo" ? A clown with a forlorn look, always finding... Read More

Microsoft Great Plains Implementation: Healthcare/Hospital example ? overview for consultant

Microsoft Great Plains fits multiple services market niche and healthcare... Read More

Business Disaster? Wont Happen to Me

As fast as you can say business disaster, your business... Read More

Abstract Thought; Business Strategies and Biological Systems

To stop a computer virus you must understand how it... Read More

25 Ways To Find Companies To Buy

When you start your program to purchase your "ideal" company,... Read More

Water Conservation and Water Issues for Mobile Car Washers and Auto Detailers

Obviously, there will never be an actual water shortage since... Read More

How To Kick Start Your Business And Double Your Profits

This will make some people angry as hell, but it's... Read More

Why Six Sigma Will Work in Healthcare

If ever there were an industry where we want zero... Read More

What is a Shared Vision?

So what makes a vision successful? Everyday companies try to... Read More

Consolidation in the Software Industry is Hardly New: Obsess About It or Risk Losing it All

Some analysts credit [Larry] Ellison with anticipating the consolidation in... Read More

How to Grow Your Business by Clearing the Way to Growth

Is your business growing as fast and effectively as it... Read More

Shortening Product Life Cycle!

The current state of the available technology at the disposal... Read More

Three Steps to Give Your Strategic Plan Traction

We all agree Strategic Planning is a critical part of... Read More

Idaho Market for Automotive Businesses; Doing it Right

Anyone who has been watching the Idaho Market Carefully for... Read More

Business Plan Descriptions of Computer System

Entrepreneurs often give little if any consideration to their computer... Read More

Innovators Role at Hard Times

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

Business Plan 101 How to Write a Table of Contents

No matter what business you plan to start in your... Read More