The day you decide to take the plunge and work for yourself will be one of the most life-changing choices you ever make, whether starting a company large or small or as a freelance; from the very first moment of being self-employed, you and you alone will stand or fall by your decisions and actions. You will be responsible for steering your business through all its ups and downs, good times and bad times with no guarantee that everything will turn out right in the end.
When you are in charge the buck stops at one place. There is no management line to help with complications; no colleagues to share the blame for mistakes, there is only you to deal with any problems that crop up, only you to decide how those problems are dealt with, and only you to face the consequences of your decisions whether they turn out to be right or wrong. Whilst there are many pitfalls and worries in running your own business, there are by contrast also times of extreme satisfaction, personal achievements, financial rewards and periods when everything runs to perfection ? it's not all doom and gloom but it is most certainly very hard work.
There are important issues to be considered by anyone thinking of becoming self-employed and all of them should be given very serious thought. Assuming at this point that you know your chosen field of expertise enough to go it alone, sufficient time to plan the setting up of your business is vital. This part of the process may be a tedious and drawn-out exercise but it is necessary to try and ensure the smoothest possible start to your venture.
The most immediate priority is of course money. When you start working for yourself it is recommended that you have enough funds to support you (and your family if applicable) for at least three months, by which time you should hopefully be generating an income from your business. However, saving this amount of money would not be an easy task and so a great deal of forward planning and patience is an absolute must if you want to make it a viable alternative to a bank loan, especially if you have already borrowed money to start the business.
It is worth bearing in mind that a vast number of companies have a 'cheque run' on a designated day of every month to pay their suppliers. If you miss this day because you did not send your invoice soon enough you will not get paid until the next cheque run. Experience has taught me that companies will rarely if ever deviate from this rule. It is in your best interests to send invoices as soon as possible; too late and you may have to get by for a month with little or no income.
A must-have for any business is a good accountant. How you choose one is usually a matter of pot luck or a referral from someone you know, the latter usually being the best way to find one. Whilst accountants are not exactly inexpensive, they will save you money in the long term. It would be a huge mistake to think that you could do their job better or cheaper than they could ? unless of course you are an accountant yourself.
Many a person has tried to do without one to save money and have found themselves having all sorts of problems with the Inland Revenue because they have not filled in their return forms correctly or have made glaring errors in their accounts. It is worth noting however that there are also the odd few small businesses whose financial arrangements are so straightforward that they can get by without an accountant although this is generally not the norm.
Opening a business bank account can be a helpful factor in running your new enterprise. It would be a wise precaution to keep personal finances separate from your business ones and a business bank account will enable you to do that. There are no sinister motives here; it simply makes sense to track and maintain company transactions from a dedicated account rather than having to identify and separate them from a statement that contains your personal banking details as well.
A useful point to bear in mind is that a good working relationship with your bank manager is an asset to any business large or small. A new business will find help and advice from their bank manager invaluable. There must be give and take though; you do have to be honest with the bank. If you are experiencing financial difficulties in business, don't try to hide it ? inform the bank as soon as possible, they can then decide how best to go about solving the problem quickly.
With your chosen accountant acquired and your business bank account open, two key components of your enterprise are now in place. Other things to think about are premises, equipment, supplies or maybe staff. As the principal character in your new company only you will know what other requirements are needed to complete your set-up in order to commence trading, and no doubt have been giving a serious amount of thought to these particular matters.
Apart from the points already mentioned there are a myriad of other considerations involved in setting-up your business. All of them must be addressed at some point but obviously in order of importance. At times all this may seem like an insurmountable task, but the very fact that you made the decision to work for yourself means that you possess the determination and drive needed to see it through.
This article is the property of the author and may only be reproduced in its original form.
John Sheridan is a professional proofreader of hard copy items and website copy. He also writes web copy and occasionally accepts small copy-editing assignments. He can be contacted at: john@textcorrect.co.uk website: http://www.textcorrect.co.uk
How you finance the expansion of your business is important.... Read More
Every new business owner knows that a business plan is... Read More
The current state of the available technology at the disposal... Read More
More than $117 billion passed hands from Internet shoppers to... Read More
Part 1A few weeks ago I attended a seminar sponsored... Read More
How important is a vision statement to your company or... Read More
How often does your company make a quantum leap forward?... Read More
Storytelling and writing a business plan actually go hand in... Read More
If you are a manufacturer wanting to use your business... Read More
Are you frustrated by the lack of growth in your... Read More
The foundation of any business transaction is the promise of... Read More
Twice a year, Bill Gates goes to a remote island... Read More
In Ohio: besides the 3-Cs you should look at Akron,... Read More
Franchised companies often require what some believe to be excessive... Read More
Note to Rite Aid and CVS: It's not about the... Read More
I am surprised how few sales professionals, independent consultants, and... Read More
Here's a really simple way to make sure your plans... Read More
To stop a computer virus you must understand how it... Read More
Writing a Business Plan these days is tough, venture capitalists... Read More
Although North Americans were the dominant population on the Internet,... Read More
"Did you hear what your competitor is doing?" This question... Read More
Can you imagine going on a road trip without knowing... Read More
Writing a business plan is no easy task, sure you... Read More
When someone mentions business planning we have been conditioned to... Read More
Writing a business plan can be tricky when all the... Read More
If you own a pressure washing business one of the... Read More
Business planning is widely acknowledged as one of the keys... Read More
Growth through acquisition should not be considered an option reserved... Read More
Too much goal setting and strategic planning can leave you... Read More
Does the competition drive you crazy?Are they relentless about taking... Read More
When developing the competition section of your business plan, companies... Read More
The format of a Business Plan is something that has... Read More
Please take a moment before you read any further and... Read More
As a business owner, you've likely created a hurricane plan... Read More
A business plan precisely defines your business, identifies your goals,... Read More
Writing a business plan to help you direct and manage... Read More
Too much goal setting and strategic planning can leave you... Read More
One of the most powerful driving forces in human nature... Read More
Business seems to drop, slow or even stop during the... Read More
From time to time there seems to be a flurry... Read More
Fun From The StartFor those with the will to start... Read More
Human beings are rational agents. Rationality endorses one to take... Read More
Scenario OneDuring a recent presentation, a business owner was given... Read More
( * - the word 'product' can be substituted to... Read More
"Most great plans aren't. They are just nice, high-level ideas."That's... Read More
Succession planning, like any business acumen, is both an art... Read More
I've either been involved with or held a process-related role... Read More
How often does your company make a quantum leap forward?... Read More
Writing a business plan is no easy task, sure you... Read More
A recent conversation started with a typical question, "How's business?"... Read More
Remember reading "Alice in Wonderland?"She asks the Cheshire Cat, "which... Read More
With the help of balanced scorecard strategy map, it is... Read More
Want to become more strategic? Add these traits to your... Read More
This week I coached a wonderfully lovely woman I'll call... Read More
Business owners and entrepreneurs are, by nature, risk takers and... Read More
American Eagle Outfitters and Wet Seal Stores have issued statements... Read More
"Begin with the end in mind," says Stephen Covey in... Read More
Growth through acquisition should not be considered an option reserved... Read More
"Bozo" ? A clown with a forlorn look, always finding... Read More
The new check cashing instant clearing will take some time... Read More
There are no "rules of thumb" in the pursuit of... Read More
In 1989, Sony founded its Institute of Wisdom at the... Read More
Every decade we seem to come up with a buzz-word... Read More
If you own the mid-size business and actively work in... Read More
Please take a moment before you read any further and... Read More
When developing the competition section of your business plan, companies... Read More
Strategic Planning |