The number of people opting for a career of self-employment is on the rise. A record-high five million people are registered as self-employed in the UK, making up just over 15% of the workforce. Whether its freelancing, e-commerce or a new business venture, many workers are pursuing a solo career over more traditional roles.
There are fantastic benefits to being your own boss. Self-employment gives you freedom, flexibility, empowerment, and it provides an opportunity for success that you might not get when working for a larger organisation.
However, with these benefits comes significant risk. I’m sure a lot of people are aware of the failure rates of new businesses. 20% of them fail in the first year, 30% fail in their second year, 50% fail within five years, and 70% fail within ten years. These are astonishing numbers and are the main reason that more people don’t create their own business.
There are endless reasons behind the failure of new companies. The same goes for self-employed workers. However, there are very common pitfalls that many self-employed people succumb to.
If you’re self-employed or are contemplating becoming self-employed, here are five tips on how to avoid the most common pitfalls.
Photo by Andrea Piacquadio from Pexels.
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Work on an effective business plan
Too many self-employed people don’t treat their working self as a business. A good business plan lays the foundations for a successful and profitable business. It involves the goals, targets, strategy, and actions required to turn a profit.
Create an effective business plan and stick to it.
Avoid legal issues by hiring specialists
If you’re unsure of how to look after your accounts or pay your taxes, consider hiring an accountant or financial expert to take care of this. Specialists in these areas can be cost-effective by advising you on more efficient ways to run your business and ensuring your accounts and taxes are in line.
Offloading unfamiliar and tedious tasks can also relieve you of significant stress and worry.
Have your business insured
Failing to secure insurance for your business can result in personal liability if an accident or emergency occurs. Even if you work from home, you never know what insurance claims can be made against you. A client or customer can sue, putting your business and livelihood in danger.
Insurance is also crucial if you become ill or are no longer able to work. Research specialist insurers in your industry and get the best quote.
Companies such as One Sure Insurance provide cover in a variety of types. Whether you’re a taxi driver or an artisan baker, it’s vital to have your business insured.
Act professionally
Acting professionally has a profound impact on your productivity as a self-employed worker. Having discipline, maintaining a routine, and professionally approaching your business keeps everything above board.
Avoid developing completely irregular work hours, frequent lazy mornings, and working in your pyjamas. These bad habits are certain to harm business functions.
Learn from failure
There is a high chance of failure if you are starting a new venture as a self-employed person. You must not let failure become a significant setback. Learn from your mistakes and ensure that they are the catalysts for future success.