Self-employed and running your own business can be extremely rewarding. Being the captain of your own ship and ultimately being in control to the other end of the scale of having the safety net of working for someone taken away can be a tough act to balance. It comes about from either a conscious decision or a drift into it. In this blog we will share some thoughts based on our own and our clients experience
BRIEF OVERVIEW & SOME COMMON TRAPS OF BEING SELF-EMPLOYED.
Becomming self-employed and running your own busniess is a major life change for most people – a change affecting work/life balance; attitude and demeanor; social life; earning power and ambition. A great number of individuals are thinking of working for themselves, either by accident or design, for most this proves to be a life changing event. There are a number of highs and lows to this life change, the positive aspects include flexibility over working hours; greater variety of work; increased job satisfaction & work challenges; autonomy and independence; improved work/life balance and increased earning power. The negative aspects of this life change include no guarantee of work or income; greater degree of isolation and less human contact; increase in financial risks and exposure; increase in stress; and heavier workloads
This life change can be quite lonely and experiences are akin to experiencing a roller coaster ride; for example busy work periods followed by quiet periods and feelings of optimism followed by ones of pessimism. Fortunately these days there are a greater number of support agencies and forums that provide a wealth of aid and assistance.
Starting with some common mistakes encountered might seem a negative way to begin but an awareness of the main pitfalls enables us to be aware of them and react accordingly – would you go on holiday without some element of pre-planning, and holidays are there for relaxation.
In my experience some of these common pitfalls include a mismatch between resources and expectations; difficulty in making the attitudinal and financial transition to “running the show”; poor market research; weak operational financial and strategic planning control & execution; poor credit control; product led and not customer led; high level of operational and financial risk; over dependence on a single customer/supplier; lack of commercial formalities, e.g. basic contracts; inadequate working capital.
The list is by no means exhaustive or a judgement on anyone who has experienced the above,
If you’re thinking of becoming your own boss please, and want help in turning your dream into reality then contact us at email@example.com or visit our website www.proactiveresolutions.com and find out how we can support your business.