If you are tired of working for an employer and believe that you have the traits that it takes to become self employed and to run your own business, there are a few issues that you need to contemplate before you take a leap of faith and trade your nine to five job for a business of your own.
Whether you have the time to devote to your new business:
In the initial stages working for yourself can take up a lot more time than working for an employer. For this reason, it pays to carefully consider whether you have the time to devote to your new business. As in the early stages of launching a new business, you may be required to pull long hours and to handle multiple roles, until your business grows and starts to earn a steady profit.
Whether you can run your business out of your home:
One way to decrease your business’ operating costs in order to increase your business’ profits is to choose a business that you can run out of your home, such as business writing eBooks or a drop shipping based company, which manufactures, holds and ships your businesses’ products for you. Which means that you won’t have to hire a potentially expensive warehouse. If you do choose to work from home, ensure that you have a quiet office space to work in to ensure that you’re as productive as possible.
How you will handle your business’ taxes:
You also need to think about how you will handle your business’ tax obligations, in order to ensure that you don’t run into issues with the tax department. Which can get you into serious issues, not just as a business owner but as an individual. If your business will be relatively small, you may be able to handle many of your tax obligations using DIY tax software. That will keep records of all of your businesses expenses and payments which you may be required to present for auditing to the tax department. Alternatively if you aren’t comfortable handling your businesses taxes, you also have the option of hiring a local accountant in order to ensure that your business meets all of its tax obligations.
Before you start a new business, it’s important to think about income protection. If you are unable to run your business due to an accident or major illness, income protection will ensure that you receive a large chunk of the income that you would otherwise bring in as a business owner. Typically you will be granted around 50% to 70% of the income that you would have received. Although the exact percentage that you would earn would depend on the cover that you paid for before your accident or illness. Sadly, income protection is one of the least purchased types of insurance.
So if you want to start your own business and are ready to take the ultimate leap of faith, make sure to keep all of the information listed above in mind.