If you are just thinking about starting your own business and becoming self-employed, the scariest thing will be not having a fixed income and a final salary scheme to fall back to. You will suddenly become responsible for managing your finances, your public image, your marketing, and paying your own tax. If you start with nothing, it might take a few years until you earn the same amount as you did as an employee, but if you survive the hard times, it will get easier. Below you will find a list of things you need to be aware of before you make your final decision.
1. You Will Need to Grow Up
Running your own business comes with a lot of responsibility, and you will have to grow up for the task ahead. Make sure you keep a cool head, and you are able to deal with uncertainty and stress. Unlike employees, you will need to take personal responsibility for your own actions. If you make a mistake, you will only have yourself to blame. At the same time, if you succeed, you will have a sense of achievement, and can feel proud.
2. You May Fail Several Times
Not many successful entrepreneurs have succeeded with their first idea. You may fail several times before you succeed. Some people say that the difference between successful business owners and those who never make it is how they deal with failure. You will have to learn from your mistakes and improve your ideas and offers continuously, At the same time, you shouldn’t give up too early, and work on perfecting your idea before you would abandon it. You can succeed if you are ready to learn.
3. The More Successful You Get, the More People Will Envy You
One of the greatest shock you will have as a business owner is that some of your friends will start avoiding you as you create personal and professional success. The better you do, the fewer friends you will end up with. Starting a business will test your relationships, and only those who honestly want the best for you will stick around. The good news is that those who will stay with you are real friends and can become your loyal fans and supporters for many years to come.
4. Administration Will Take a Lot of Time
From creating your business and talking about your options with a UK company formations agent there will be several administrative tasks ahead. While getting creative about your business and putting things in place might seem simple from the outside, making sure that your books are in order, you have business stationery, and your website is appealing to potential customers is more challenging than you would think. As you get practice, however, it will get easier.
5. You Need to Learn to Budget
When you become self employed, you will have to create a long term strategy and keep a close eye on your personal and business budget. You are likely to need some startup funds borrowed from your personal savings, or take out a startup loan that needs to be repaid. You have to become more responsible with money, and learn to save for rainy days.
6. You Must Change Your Mindset
If you start a business with the employee mindset, you are very likely to fail. You will need to change your attitude towards work, responsibility, and timekeeping. If – as an employee – you skip work or turn up late, you disadvantage your employer. If you do the same in your own business, you are damaging what you are trying to build: your reputation. It is important that you understand that your actions have a direct impact on the future of your business, and you must put yourself first.
7. You Need to Look After Your Own Future
Being self employed will mean that you are paying your own National Insurance contributions and tax. However, if you don’t think that the state pension will be enough for you to retire on, or want to stop working early, it might be a good idea to set up your personal pension plan. The good news is that self-employed pensions are automatically topped up by the government, so you can build up your portfolio and top up your retirement income.
8. You Must Believe In Yourself Before Others Can
You must work on self-belief, and probably take a course that will change your mindset. If you don’t believe that what you have to offer to your customers is valuable, you cannot expect them to trust you. Self-confidence and determination will make you successful, while self-doubt will kill your business.
You Must Learn to Listen to Helpful Comments Only
When you start your business, it is important that you are only listening to positive comments. If some of your friends and family members keep on telling you that you will not succeed, or you have little or no chance, you might want to stay away from them. Surround yourself with successful and positive people who will cheer for you all the way, and not try to bring you down.
You Will Face Rejection – A Lot
If you go out in the “big world”, you need to be prepared for negative feedback and rejection. The truth is that your product or service might not appeal to everyone, so you must learn to accept rejection gracefully. Take this as an opportunity to learn how to improve your business, instead of a personal attack. With determination and confidence, you can overcome rejection.
Before you start a business, you need to make sure you are ready for the challenges ahead. Check that you have the right attitude and mindset, and you can handle rejection, stress, and uncertainty. If you grow personally and professionally with your business, you will increase your chance of creating something that will provide you with a steady residual income and career satisfaction. If you have low confidence and self-belief, it might be time to contact a business coach who can help you overcome your personal limitations and succeed in whatever you decide to do.
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I love number 8. Fear I think is the biggest set back with self employment. Believe you’re good at what you do, believe you’re worth paying for. Sounds so simple but it’s so scary! x
Very insightful read Jenny!
Very true.. Especially the part where you might fail several times..
Budgeting is hard and I am definitely not the budgeting expert! I am married to a man who is save and budget!
Budgeting is the bit where I’d struggle! I’ve always wanted to be self employed as an adult in the future but all these points are so important when considering it xx
Morgan // http://www.justmorgs.com
Great post! I’d been a teacher for years but then started my own consultancy and did this both alongside each other for about 3 years. Then my business was taking off in a big way. I was like….shall I hand in my notice now? How can I cope working all these hours? But for a year, I continued doing both working ridiculous hours and tracked my own business to see if there was demand all year round and there was. So I gave up teaching and more than tripled my salary with my current job. It’s given me flexibility in my life and I also volunteer once a week at a youth club so that I’m part of a team (which is the only downside to my business as I’m totally alone except for clients). Best decision ever! You can get out what you put in so be prepared for grafting!
I think #6 is really important. I remember I went to a store one time that had a sign that said “open at 12ish” and I showed up at 12 and she didn’t even get there for like another half an hour. It was really unprofessional! I’ve never heard of a successful shop that opens after noon on weekends at an unreliable time.
What great tips! I agree people will be negative towards success.
This is so true. The hardest part for me was staying motivated. Nobody was going to take me off at 5pm and do the tasks I couldn’t/didn’t want to finish. I had to rely on myself to make myself successful.
Great read 😊
Numbers 3 & 4 are so true!! Especially I found number 3 which was a real shock and disappointing that people can be like that.
this post is extremely encouraging! I wouldn’t even think of most of the things you put on here.