Becoming Self-Employed

Redundancies and a lack of good jobs have resulted in an increasing amount of people becoming self-employed in recent years. According to recent figures there are now well over 4 million self-employed people in the UK. 

Although, in theory, becoming self-employed and setting up your own business can be quite an easy process, for many it can be a daunting, frightening and financially challenging step to take. However with more and more people being made redundant the thought of being your own boss and generating an income outweighs such concerns. 

It is no secret that the job market around the Europe and the rest of the world is still tough, with record amounts of applicants per each job opening consistently being reported. Finding a job can be difficult; therefore if you have a business mind, a unique idea and self-drive becoming self-employed could be just the answer to your employment issues. 

Considerations 

Before such a decision is made, consideration and thought should be given to the process, requirements and responsibilities related to starting your own business. One should look beyond the popular preconceptions that you often see highlighting advantages such as having no boss and making your own hours. Ask any successful self-employed worker and they will state how hard they work and the often long hours are necessary for generating a meaningful income. Along with hard-work, being organised is also vital to long-term success and effective budgeting.  

It will also be beneficial to gain as much professional advice along the way as possible. Financial help and recommendations from accountants will help your business maintain accurate records and successfully register self-employed and for VAT, dependent on your annual earnings. 

Keeping accurate and clear records from the start-up stage is imperative as this will ensure you keep HMRC happy when it comes to your annual self-assessment form.  

Taking the Plunge 

A business plan should be the first step towards becoming self-employed. Have clear aims and goals for your businesses progression as this will enable you work out targets, start-up costs and profit expectations. A successful business plan will also include market research of demographics and target markets, ensuring that the correct business location is selected. 

Finally constant and consistent effort will be required. Starting a business takes energy and you need to give 100% all of the time if you are to succeed.