Beware Of Business Blunders: Top Tips For The Self-Starter

More and more people are choosing to leave the daily grind behind and become their own boss. Whether you choose to take on freelance work or you’re keen to unleash your entrepreneurial flair on the world and set up a new business, there’s a lot to think about. Being self-employed has many perks, but there are also plenty of dangers lurking out there. If you’re keen to avoid common business blunders, here are some tips to keep you on the straight and narrow.
Planning ahead
There are lots of different paths you can take when you’re self-employed, but one thing that is important no matter your field of expertise is planning ahead. From organizing your finances to setting out a viable work schedule to establishing a client base and working how you’re going to generate an income you can live on, it’s essential to have firm plans in place before you take the plunge. When you’ve got ideas whizzing around in your head, it’s easy to get carried away and to want to get started as quickly as possible, but resist the temptation to be the proverbial bull in the China shop. Take your time, lay the foundations, and work out what your average day is going to look like. If you go in all guns blazing, you may find that there are holes in your business plan, which set you back or even put you out of business before you’ve even got started.
Self-preservation
When you set up a business or you decide to go it alone, you don’t have the protection of the bubble around you that exists when you’re part of a corporation, so it’s important to take steps to protect yourself. This doesn’t just mean your money and your assets. It also applies to the work you do. If you make a mistake on an average day at work, there’s every chance that more senior members of staff will handle the situation and you may not even hear any more about the matter. When your name is on the business cards or the side of the van, don’t underestimate the impact of mistakes. Even a minor error could be costly, both financially and for your reputation. If you are flying solo, look into PI insurance for contractors. Public indemnity will cover legal fees and costs incurred by other contractors or clients in the event of an error or a delay. If you’ve got this cover, you’ll be protected against unexpected incidents, and you won’t face financial ruin if a job doesn’t go to plan. Many clients will also be more inclined to work with you if you have indemnity cover.
Achieving a balance
When you have a job, and you’re employed by somebody, it’s highly likely that you’ll have set working hours. You know that you’ve got to be at work by a certain time, and you’ll be free to leave eight or nine hours later. When you’re self-employed, your work schedule may be less structured, and this can make finding a balance between work and life more difficult. Some people enjoy their new-found freedom a little too much, while others seem to spend their entire lives at work. As you adjust to self-employment, you’ll learn what kind of routine suits you, and you can start to establish a pattern. Make an effort to get every job on your list done, but don’t lose sight of the importance of downtime.
Keeping your eye on the ball
When you work for somebody else, it may not be your responsibility to keep track of orders, payments, and invoices. As a self-employed person, you need to make sure that you have your eye firmly on the ball when it comes to your finances. Unless you employ somebody else to handle your finances, it will be your responsibility to ensure that bills are sent, payments are received, and balance sheets are updated. Insist on prompt payment from day one, and ensure that all clients are aware of the pricing structure, and hw and when they should pay for the work you carry out. If you can be organized from the start, this will eliminate problems further down and prevent cash flow issues.
Being self-employed is an appealing prospect for many, especially those who are ambitious. If you’re thinking of leaving the world of employment and you want to give being your own boss a go, it’s wise to be wary of potential hurdles you may hit. There are countless advantages of managing your own affairs and taking charge of your schedule, but it’s important to take steps to reduce the risk of common business blunders.