Handing in your resignation letter so that you can become self-employed is one of the most exciting steps that you can take. Now, you’ll have the freedom to work for yourself – something that many people would love to do. However, taking the leap and starting a new business can be very daunting and doesn’t come easily.
There are so many things that you’ll have to consider when starting this venture, to ensure that you’re as prepared as possible for what’s to come. Nobody wants to go back into full-time work because they weren’t organised and ready for self-employed life after all. So to help you on the right path, here are the top 5 things you should consider:
- What Your Business Will Be
This might sound obvious, but it’s something that you’ll want to have a firm grip on before you hand that resignation letter in. When deciding what your business will specialise in, you’ll need to consider where your strengths lie and what you know about the market in question. This will also involve thorough research into what the demand is like and what similar products/services already exist.
- How You Entice Customers
You’ll then have to consider how you’ll entice customers into buying your product or service. To do this effectively, you’ll have to identify how you differentiate from your competitors and which marketing/advertising techniques you’ll use to help promote this.
A key factor in the process, it’s something that all self-employed professionals need to do in order to increase their profits and build connections within their industry.
- Opening a Business Bank Account
Although you might be tempted to use your personal bank account at the start of the process, it’s vital that you consider opening a business bank account instead. This will help to keep your business records and finances separate (as well as in check) – which is essential when it comes time to file your tax returns.
Luckily, business bank accounts aren’t expensive (some are even free) and they are simple to set up. Along with the bank account, you might want to set up a virtual mailbox, which gives you a postal mailing address online – that you can use to view any business-related mail that you receive and put onto any marketing material that you hand out to potential customers.
- Investing in the Right Insurance
As a business, it’s important to recognise that you’re required by law to have certain types of insurance. Of course, the insurance that you have will depend on the type of business you have, but nevertheless, it’s something that you shouldn’t ignore. This can include the likes of professional indemnity insurance, which protects you if a client is dissatisfied with your work.
- Register as Self-Employed
Although this is more of a must than a consideration, it’s still important to mention on this list. The moment that you become self-employed, it’s essential that you inform the HMRC of this. Through doing so, you’ll have to pay your own National Insurance (NICs) and income tax.