You’ve decided it’s time to become self-employed. That’s a great decision, but there’s a lot you need to do to make it happen. This guide will help you determine which type of business is right for you and your goals, figure out how much money it will cost to start your business, hire employees (if applicable) and more.
1. Determine the Type of Self-Employment You Want
For many young people, the type of self-employment they want to pursue will depend on what they love to do. Consider the following examples:
- Freelance Writer: A freelance writer can be anything from a blogger who writes about their favourite sports team to an editorial writer who focuses on politics and social issues. In this case, the person would likely work from home or at coffee shops, depending on where they feel most productive while writing.
- Small Business Owner: Owning your own business can mean starting your own blog or website all the way up to running an entire factory with employees working under you for profit. If this sounds like something that interests you, then it may be worth investigating further before deciding whether or not self-employment is right for you.
2. Figure Out How Much it Costs to Start Your Business
Another step to becoming self-employed is figuring out how much it will cost to start your business. You’ll want to estimate the basic costs associated with starting and running your company, as well as marketing costs and taxes. You can get started by asking yourself questions like, What are potential startup costs? How much do you need to build your website? What kind of office space will you need? Do you have an accountant or lawyer who can help you out at an affordable rate? Who else do you need on your team to launch this thing successfully? Once you’ve answered these questions, add up everything from rent for your office space to hiring employees for accounting work and make sure there’s enough money left over for ongoing expenses like marketing and accounting services. Then add any additional costs such as self-employed health insurance (if applicable) since those will be crucial when running a business from home without any benefits from an employer.
3. Decide About Your Business Structure
Once you decide to become self-employed, the next step is determining how you want to structure your new business. There are many different options for organizing a business, but here’s a brief overview of the most common:
Sole proprietorship: This is the simplest form of business structure. If you’re operating on your own and not hiring employees, this is likely what you’ll want to use. A sole proprietor doesn’t need any kind of formal registration with the state or federal government; all they need is a name and some basic paperwork filed with their local county clerk’s office if necessary. However, this also means that sole proprietors aren’t protected from personal liability if anything goes wrong with the business; creditors can come after their personal assets as well as any assets from their businesses (for example, if someone sues because they slipped and fell at one of your events).
4. Create a Marketing Strategy
You need to create a marketing strategy. This can be done in a number of ways, but there are two main types of marketing strategies that you should consider:
- Inbound Marketing is about attracting customers through your site and content rather than relying on traditional advertising methods. Inbound marketing works for businesses with limited funding or not established yet.
- Outbound Marketing – this involves going out and talking to potential customers directly, whether it’s speaking at events or attending networking opportunities. Understanding how both types of marketing work is important before deciding which one will suit your business best.
5. Build a Website for Your Business
Now that you know the steps to start a freelance career, the next step is to build a website for your business. Building an online presence will help you attract clients and make more money. How to create a website? You can use website creators, both great options with low-cost plans for beginners. If you don’t have any technical knowledge, it’s best not to try building one yourself because it could be very time-consuming and stressful when something goes wrong in the middle of creating your site. Instead, hire someone who already knows how they work, such as an IT freelancer.
6. Create a Network of People You Can Lean on
A strong network of people you can lean on is essential to being a self-employed entrepreneur. A good support network will help you avoid burnout, give you the motivation to keep going and make sure your mental health stays in check.
A good support network should include at least one person who knows about your business and works closely with you or your business partner, if applicable. Your family members can also be a great source of support as long as they have a healthy relationship with each other. They might not always be able to relate to what it’s like running a small business, but talking about their own day-to-day lives gives them perspective on how hard things can get when work gets stressful.
Other people from outside your professional life are also worth including in this list: friends from school or university; colleagues from previous jobs; local entrepreneurs; mentors, and other professionals who have been through similar situations (for example, if you’re starting up while still working another job).
Starting a business is exciting but also a lot of work. You have to plan and prepare for your new venture, which takes time and energy. If you’re ready to take the plunge into entrepreneurship, I hope this guide has helped clear up some of those questions. You must remember that while self-employment can offer a lot of freedom and flexibility, it also requires hard work from everyone involved, including yourself. But if you decide this type of life is right for you, don’t let anything hold you back from achieving success.
About the Author
Delan Cooper is a writer with years of experience in marketing communication. He enjoys meeting new people and reading more books to get inspired for his own book. Connect with him on Twitter.