So you have a great business idea and you want to take the plunge and become self-employed, so how do you do it? Here are some things you need to take into consideration when you want to become self-employed.
Have A Great Business Idea
Firstly you need to have a great business idea and you need to do your research. Is there an opportunity or gap in the market for this product or business idea? Think about your target market and who your potential customer is and then ask potential customers their views. Don’t be afraid to adapt your idea to make it work as you may not get it right in the first place.
Cost Everything Out
Once you have your idea or product then you need to cost everything out. If it’s a new product you need to look at the cost to produce it, distribute it and market it. Get more than one costing on how much it will be to produce by different companies to compare.
If it’s a shop, cafe or restaurant, you need to think of where you are going to source your stock from, and where it will be, and you need to look for premises. The cost of premises will need to be budgeted for and will need to include utilities like telephone, heating, lighting, and water rates, the cost of staff and how much you are paying yourself.
All businesses need a marketing budget so allow up to 10% for adverts in magazines, newspapers, leaflet distribution, working with social media influencers and even television adverts.
Having an online presence is very important in this day and age so think if you are going to have a simple holding page about your business online which gives basic contact information and what you are about, or an online shop, and budget accordingly.
Set Up A Business Plan
Everything needs to be written out in a business plan. As well as giving a clear idea of where you are going with the business, it can help you see running costs as well as potential income, and in the future, it can manage your progress. Writing a business plan is a good idea as well, as it can help access funding if you need it.
Think About Funding
Once you know how much your business idea will cost you need to think about how you will fund it. Do you have enough money to set your business up? Check your savings accounts and see if you need to set up a regular savings plan to open your business in the future. Can you access grants for small businesses in your area? There may be a number of grants available to help you with your business so do your research carefully.
Another way to access funds is with self-employed loans, either from a bank or loan company. A self-employed loan can gain quick access to the money you need, whether you need it at the beginning of the business or for capital investment at busy times of the year.
Do It
So once your idea is costed out, you have secured finance and you have bought the product and marketed your business, then go ahead and do it! There is no time like the present to make money. Keep records of all incomings and outgoings and its a good idea to employ an accountant to help you in the early days to ensure your tax records are correct.
I hope this article has been useful and I wish you all the best with your new business.
