
Self-employment is a very attractive prospect to some people. One of the main appeals is being able to work flexibly by choosing your own hours and fitting work around other commitments in your personal life.
Others may be enticed by the better earning potential by having more control over and equity in their business. As of December 2021, the self-employed individuals in the UK totalled at 4.18 million. Despite levels of self-employment falling in the wake of the coronavirus pandemic, it has seen steady growth since 2000.
So, if you are thinking about becoming self-employed, you are certainly not alone. So, what are some of the things you will have to do once you make the move?
Considerations
1. You’ll have to start handling your own admin
When running a business, or working as a freelancer, you will be responsible for a whole new host of admin tasks. This will include paying your own taxes, keeping and organizing business-critical documents, and ensuring that your work activities comply with the law.
When starting off, you may find it beneficial to enlist the help of a professional to ensure you tick all the admin boxes. This can take away the initial stress of starting a business as you know you will have a section of your work taken care of.
2. Loneliness
Unless you employ staff, when you become self-employed, you give up having colleagues. This can be a benefit or a drawback depending on your working style.
If you find yourself to be more productive working alone, you shouldn’t have anything to worry about. However, if you have enjoyed the social aspect of work in the past, you will have to consider the implications this will have on your mental health and productivity.
3. Build up a digital presence
In today’s digital age, it is important for sole traders, business owners, and freelancers to have some form of digital presence that promotes their work. This can manifest in a number of ways, depending on what type of self-employment you are involved in.
For example, if you are selling a product, you may invest time and money in creating a website to provide an efficient e-commerce outlet.
If you are a freelancer offering a service, on the other hand, you may build a portfolio or showcase your work on social media.
4. Assets
When becoming self-employed, you will have to buy the correct equipment for your business venture. These items are known as assets and they can be claimed back under expenses.
For example, if you are working in a profession such as construction, you will need to take charge of your own health and safety and invest in particular personal protective equipment (PPE) such as high quality ear plugs or safety glasses.
5. Choose work wisely
Part of being self-employed means there are not really any limits to your working day – you can work at any time for any length.
However, constantly being on the clock can lead to burnout and it’s important to take care of your mental and physical health to avoid this. Set limits on your time and turn off your work phone or computer when you’re not on the job.
6. Never stop learning
When self-employed, you should be looking for constant ways to better yourself. You must keep up to date with new and emerging technologies to stay relevant and successful in the business world.
Attend business summits in your field and talk to others in a similar situation to yourself – there’s always something new to learn!