Have you ever thought of becoming an entrepreneur? Self-employment is something more and more young people are going into. Maybe it’s because you want independence that you cannot get when working for someone else or you have not been able to get a job.
No matter the reason, deciding to start your own business can be terrifying and if you don’t go about it the right way, you may not succeed. After all, almost half of all startups fail. In the article see some important things you need to do before choosing to go into self-employment.
Things to do before becoming self-employed
1. Work Your Side Hustle
It is not advisable for you to just take a leap of faith and quit your job to start your own business; you first need to ensure that you will have an alternative source of income.
So before leaving your job, try and build you side hustle a little, for example, if you want to become a freelancer, you can start by establishing a client base so that when you quit you have a little more money to fall back on and also clients for your new business.
2. Do your research and form a plan
Failing to plan is planning to fail. This means that if you don’t really think things through and come up with a solid plan on how you are going to build your business then there is a huge likelihood that you will fail.
You cannot come up with a good plan if you do not do proper research. Look into what the law says you need to start your business, how much capital you will need, who your target client is and where they are, the day to day cost of running your business and many more.
Knowing exactly what you are getting into will help you avoid nasty surprises such as legal trouble and will ensure that you are financially capable of running your business and paying your bills. You should never start a business without knowing everything there is to know about it.
3. Save as much as possible
If you quit your job you will lose steady income, this means that you will need to have a backup plan on how you will pay your bills because job or no job your rent still has to be paid.
Before saying goodbye to your job, you need to save as much money as possible because most businesses will not make you any money during the first few months.
You need to save up at least three months’ worth your bills so that even if you make no money after you start your business, you won’t be kicked out of your house.
4. Determine your comfort level with an unstable income
If you are employed, you are probably used to getting paid a certain amount every month. What you need to remember about being self-employed is that this is not always the case. For some businesses, earnings come in irregularly and you might not earn the same figure every month.
Are you okay with this? Are you capable of handling your finances in a manner that ensures whether you get income or not you will still be able to handle your responsibilities?
You need to ask yourself how comfortable you are with not knowing when you will get money or how much especially if you decide to go the freelance route.
5. Take Care of Nuts and Bolts
Remember that starting a business is not just about finding a location or product to offer. There are some legal requirements that come with owning a business; you need to ensure that you take care of all of these so that you don’t doom your business to fail.
6. Be prepared to work
You should not think that just because you are self-employed that you don’t have to work hard if anything, you have to work twice as hard to ensure the success of your business.
Of course it is your hard work that will determine whether or not you succeed as an entrepreneur; you should not go into it thinking things will be easy, even if you are doing something you love.
When it comes to starting your own business, you need to know that not every business succeeds so you should not be discouraged if something you started does not pan out. You need to be fully prepared before you decide to take the leap into self-employment.