Working for yourself has so many benefits, especially if you are a working mum. The ideal scenario of being able to be more flexible with your hours and work around your family is every working mums dream. However, there are things you need to consider before going self-employed. This quick guide will give you a run down of the key points you need to think about.
Work Life Balance
Many people hope when they become self-employed to be able to have more free time, freedom and flexibility. However, it’s important to not underestimate the work involved when starting your own business or going self-employed. There are things you may need to consider that you haven’t thought of.
Why not join a Facebook Group or ask in a related forum and ask for other people’s experience and advice so you can fully understand the work involved. You might even be able to find a mentor to help you along the way. Women in business are not as hard nosed as sometimes portrayed and there is a real sense of community among entrepreneural women. You might even discover opportunities to outsource work so you don’t inadvertently end up tied to your laptop all hours of the day and night.
Working Space
Have you got a dedicated area in your home where you can get peace and quiet to work productively? Even if it’s just a corner of a room where you can create a small office it’s important you have a space to work. You might want to consider renting a small office or turning your garden shed into your work space!
If you do work from home it’s worth checking with the council that they approve of you working from the street (depending on your business).
Trademark your business name
Once you have chosen your business name check that it hasn’t already been trademarked and if not make sure you trademark it. Other things to consider are whether it’s a name that is marketable and relevant to your business, is it memorable and does it support your SEO. Also, very importantly, are there .com or .co.uk domains available for it?
Life Insurance
One thing that is really important to consider but is often overlooked is income protection. Income protection pays out a percentage of your salary if you’re signed off of work because of illness or injury. It is normally 50-70% of your salary, depending on the amount you choose when you buy it, but some policies do pay out 100%. Ironically it’s one of the least bought types of protection in the UK, despite being a perfect choice for anyone who earns an income and relies on said income for paying the bills and supporting their family. As such it’s relevant for anyone working, whether your self-employed or employed.
Pay your taxes
You need to make sure you budget and prepare for Income Taxes and National Insurance so you don’t have a nasty surprise with how much you owe when the payment is due. If you have a Private Limited Company or Limited Liability Partnership you will need to pay Corporation Tax as well. If it all feels too overwhelming, realise you can’t always do it all and as such it might be worth hiring the services of a good accountant to help you.
How will you market your business?
Have you considered where you are going to market your business and how you will get customers? If you’ve got clients waiting then that’s fantastic. But if you need to attract new clients, consider how you are going to do this, the different options and any costs involved. ABC test to see what brings you the best results.
Good luck!
I hope this has been helpful to anyone considering going self-employed. It might seem a big jump but as long as you do your research and consider all implications, both financial and on your family and personal life, it could be the best thing you have ever done!
Have you already made the jump and gone self-employed? If so let me know in the comments below your top tips for anyone thinking of taking the plunge.
Disclaimer: This is a sponsored post. Please be advised I am not a finance, tax or insurance advisor. This is my thoughts and opinions only so please do further research if making the decision to go self-employed.
