Joining 4.8 million Brits that are self-employed has been one of the best decisions that I ever made, and I am often asked when I knew that it was the right time to take the plunge and work for myself.
There are a number of personal decisions that led me to leave teaching and take the blog on full time. In the US almost 30% of the workforce are self-employed according to Forbes. One of the reasons suggested for this change in employment status is that ever-increasing technology makes it easier for workers to add new income streams. Many people now also have a side hustle to add further income to their life, most side hustles tend to be on a self-employed basis.
What constitutes self-employment?
Somebody could be classified as self-employed if they
- own a business, rather than working for an employer
- agree a fixed price for their work with their employer or client
- decide on their own schedule when work is available
- can work for more than one client
- provide the tools, equipment or materials that are needed to complete a job
Self-employment can take many forms – including entrepreneurs and freelancers, gig economy workers or contractors. Shopkeepers, hairdressers, cleaners, and craftspersons make up a large percentage of self-employed workers. Many of these are also women and I can fully understand why women take the plunge and leave the traditional workplace.
Being self-employed suits family life as women can work around the demands of their children. It allows parents to attend all the sporting commitments like hockey matches, school assemblies and after-school activities that children often choose.
A further advantage of self-employment is the flexibility it allows, this could mean that people are able to get involved in voluntary work like being a school governor because of the flexibility afforded.
There are a number of considerations when working from home especially if you need an online presence to build your business (and these days most self-employed businesses need that presence).
6 Key Steps for Success when Self Employed
These are the other important questions to ask yourself before taking the leap to full-time self-employment.
- Be very organized and keep accurate records as you are responsible for your own accounts and tax. You will need to file your own tax returns and pay the monies due. It can be useful to outsource your tax return to an accountant if you are worried about doing it yourself.
- Working online also means understanding social media and building an online presence which takes time. You will also need to understand SEO or use a specialist service like Click Consult which can help build your presence.
- If you have physical products to sell a pop-up shop often works well. If you want to meet people or showcase an event then you may look at flexible retail spaces that you can book for a short-term. If you are looking for an event warehouse in Los Angeles for example you could make it hassle-free a rent one for the duration of your project. It is now easier than ever to rent shops, pop-up stores, showrooms and venues around the world.
- Do you have savings to use if you have a lean month? Many self-employed entrepreneurs can struggle in the early years as they build up a client base. Can you manage when things are financially tough? This is a reason that many start their self-employed journey as a side hustle. This can be very hard work, but it can help keep the books balanced.
- Are you self-driven? Can you motivate yourself to search out opportunities, promote yourself and carry out the work to deadlines? Being self-employed requires ambition and drive. Many self-employed people work long hours as there is so much hidden work to do behind the scenes.
- Do you have a product or service that is in demand? Plenty of research will help you understand whether there is a gap in your area.
There are many advantages to being self-employed and it can be very fulfilling just ensure that you do your research first.
