When you head out to work every day, do you wonder if you could ever make it as your own boss? If you’ve ever dreamt of owning your own company, becoming a freelance consultant in your field, or working remotely, you can often find yourself wondering what it will be like. But, you don’t have to just wonder, you can make it happen. If you feel like it’s something you want to make happen, you need to ask yourself a few very important questions before you know if you’re ready or not to take the leap.
Do You Have Backup?
First of all, before you think about quitting your job and starting out on your own, you need to know that you’ve got backup waiting if you need it. Being self-employed can be very unreliable when it comes to both business and money. So, you need to make sure that you have money saved up in the bank to pay your bills if ever you find yourself without an income, or an invoice is paid late (as they often are!). Three months worth of bills is usually a good start, as a minimum, but any more will definitely give you a cushion.
Can You Generate Business?
Regardless of your field of business, whether it’s recruitment or even accountancy, you need to make sure you can generate business. It’s always a good idea to have clients or work lined up before you make the plunge. That way, you know where your first source of income will come from. If not, it’s worth looking into how you’re going to get your first clients before you quit your job. Generating work first is always the smartest option.
Have You Got The Functionality?
Aside from the ability to make money, you might want to think about where you’re going to be making that money. If you’re working from home, do you have enough space? You might think you just need a laptop and you can work from anywhere. While that may be true, it’s more motivating to be able to have an office to keep you in the zone. You also need to make sure that you have all the equipment necessary to do your job well.
Can You Get Set Up?
Then, you need to think about getting yourself set up as a business or a self-employed individual. Here, not only do you need to speak to HMRC and notify them of your change of employment status, but you also have to register to pay tax. At the same time, you might want to register with an accountant if you need one, and even a law firm like Eatons if your business has corporate legal dealings.
Can You Wear Multiple Hats?
Finally, you need to ask yourself if you’re really okay with wearing multiple hats. As a business owner, not only do you have to provide your service or product, you also have to process admin, send and chase invoices, input your taxes, make sales pitches and more! It’s a tough job, but if you’re up to it, being your own boss can be pretty brilliant.