Self-Employment can be such a touchy subject that tends to send thrills up our spine with the overwhelming thoughts about money and being on our own!
But if you really want it – you will muster up the courage and overcome your fear of branching out on to your own. So many questions are part of this process! How do you know where to start and how do you know if you are going to make it are two of the biggest questions that run through our minds.
So, now that you have decided to be a part of the self-employed world, you need a plan. Operating your own business is not all clear blue skies, you have to realize that. Not everyone has good luck with it, and it doesn’t work out for everyone. Some regret the choice to switch to self-employment and I blame this mostly on execution of their plan.
My advice to you: Make a plan and stick to it. In good times and in bad times, make your worse days lessons you learn in your business and don’t be afraid to step out of your comfort zone. Here is a breakdown of what you should consider doing in order to get set up:
Increase Your Savings - This is the most important item to start with. You definitely want to increase your savings before fully making the switch to being self-employed. You always want to be prepared just in case there you have a bad month where business is slow. You also want to keep your debt at a bare minimum.
Write Your Business Plan – SO IMPORTANT, yet, so many people forget to do this one small and valuable task. Take the time to really think about what your business will involve and how you will administer this.
Create A Budget - If you are going to be self-employed, you need to know how to manage your money and how to make a dollar stretch where you need it to. Every month will most likely have a much different income level and this all needs to be thought about. A good rule of thumb is to try and live on half of your monthly income while saving the other half. You shouldn’t have to feel that you are struggling in your new self-employment state f mind.
Start Building Your Business BEFORE You Leave the Corporate World - It is important to build up your freelancing before you decide to leave your day job. Of course this doesn’t always work perfectly for everyone, but this is one of the best ways to start off. Have a set number in your head for where you would like to be with your freelancing income per month, and try to reach that number before you make the switch to self-employment. You want to build up clients and customers to a point where you are 100% confident and believe that you can be successful as a self-employed person.
Related Post: From Side Hustle to Main Hustle
Diversify your work - This doesn’t have to apply to everyone. However, for me, I would like to be as diversified as I can. This way, if something decreases with one of my jobs, then I will have other areas to fall back on. I know that most of my work is related to blogs, so I am looking for additional areas as well to expand in. What do YOU do for work?
Taxes – Don’t forget about these! – If you register your business in Ontario, you will have to remit taxes. Speak to an accountant and find out the best way of handling your small business taxes. Taxes should be added to your budget as well.
The road to self-employment is a journey that should be enjoyed and documented as much as possible. Don’t be afraid to modify your Business Plan as you need to, but don’t forget that your Business Plan is to be used as a guide in order for you to accomplish your goals.
Take every aspect of your business into consideration and PLAN well in advance for anything that comes your way. I look forwadr to hearing your stories and seeing you succeed well beyond you ever thought you would! Best of luck to you all!
With Love | Nikki xo