3 Things to Consider Before Going Self-Employed
AD | 3 things to consider before going self-employed [Last Updated- August 2022]
Going self-employed can feel scary, understandably because it’s a big step.
We pour hours into research and it can often feel daunting not knowing where to begin or what being self-employed really entails.
So, today I am sharing 3 things to consider before going self-employed.
Now more than ever the rate in which people are going self-employed is rising and that’s no surprise when you take into account the world is changing.
So, people are looking for new ways to become more financially stable. It was a big factor for me when I decided to take the leap of starting my own business.
With a family and bills to pay, the natural next step for me was to go into self-employment.
I knew I was going to eventually, but the pandemic set in stone that decision and it was one of the best I’ve made.
So, to help those who may be thinking of going self-employed themselves, here are three things to consider before you take that leap.
3 Things to Consider Before Going Self-Employed
1: Income Protection
Income protection insurance is a way to provide an income for yourself if you are unable to work due to sickness or injury.
It’s a smart investment to make sure that you are covered if anything were to happen that means you can’t work for a little while. Income protection will cover your essential outgoings meaning you will still be able to pay bills and provide food for you and your family.
As someone who has a disability and gets sick quite often, this type of cover is essential for me to have peace of mind in case anything does happen that means I can’t work.
That’s where LifeSavers comes in. They are one of the UK’s biggest life insurance brokers and they are super passionate about making sure that all their customers enjoy the peace of mind that life insurance products, including income protection, can bring to them and their families.
A Passionate company
They are also passionate about finding cover for as many people as possible, even those with pre-existing conditions that would have previously had them excluded from being able to buy affordable these types of cover.
LifeSavers have helped over 640,000 families get protected cover since 1998. They have 4.9/5* on Trustpilot and offer free support so you know you are in good hands.
So, make sure that you do your research into income protection and get yourself covered when you’re going self-employed, you’ll thank yourself for it in the long run.
2: Work/Life boundaries
Before going self-employed you have to take into account the work/life boundaries. Because the sooner you have it under control, the better it’s going to be when it comes to your work and not allowing it to seep into every aspect of your life.
Having a healthy work/life balance means that you won’t be putting yourself in situations that could jeopardise your work ethic or your family life.
A healthy work/life balance is important
As someone who is self-employed and has a family, I can confirm that when you allow your work to take over your personal life and relationships suffer, which really isn’t ideal.
When you become too work focused you run the risk of your life feeling like it’s being taken over and that you have no down time which we all need in order to function at our best.
So, make sure that you set those boundaries before you go self-employed because the sooner you put them in place, the better.
3: The Right Reasons
One of the most important things to consider is “am I doing it for the right reasons?”. The thought of going self-employed may sound appealing and whilst I personally really enjoy it, there’s a lot of risk involved.
So, if you aren’t doing it for the right reasons, then it probably isn’t going to work out.
You have to ask yourself some tough questions and it isn’t a decision you can make overnight. So, get yourself a piece of paper, notebook, word document, which ever you prefer and start writing a pro’s and con’s list.
Be honest and open with yourself.
Although you feel like you want to take this step, doing your due diligence beforehand will help you a lot and set you up for more success when it comes to starting your self-employment journey.
Write out questions that you have, take to the internet and look for people’s stories. Fact check and triple check sources, check your local government websites, get in-touch with other self-employed people and ask them some questions.
Do what you can to set in stone in your head that this is the right decision for you and if it’s not, that’s ok too.
To get you started with questions, here’s some you could ask yourself to start off with:
- Can I afford to go self-employed?
- How passionate am I about the business?
- Will going self-employed fit with my lifestyle?
- On a scale of 1 to 10, how much do I want this?
And there you have it, 3 things to consider before going self-employed.
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Thanks for sharing, these tips on going self-employed 🙂
Another wonderful post, Jordanne.
Btw, love how the blog is looking.
This is super helpful, I’m still working part time alongside running my blog as I don’t dare take the leap to being full-time self employed. When I eventually do take that leap I’ll make sure to do it for the right reasons!
This is a great article. The work/life balance piece is especially challenging for some people. I had a hard time with it years back when I was running my own business, but my family and I figured out ways to separate the two sides of life, and we were all happier as a result. Going out on your own is super rewarding, but it certainly comes with its challenges.
Thank you, Anthony. Having everyday life and business separate really is so important!
Hi Jordanne,
All 3 of those points certainly warrant consideration before going self-employed.
I’d like to offer another couple of points to consider, if I may:
1. Tax. Yep, there are two certainties in life – death and taxes. Don’t be tempted to spend all of your income as soon as you receive it – the taxman will want his share and it will be less painful if you put money aside to cover this.
2. Pensions. The prospect of retiring and drawing a pension may seem a long way off but the sooner that you start to provide for your retirement the easier it will be. There used to be an adage (not sure if it still applies – any IFAs reading?) that said that for a comfortable retirement you should put into your pension, in percentage terms, the equivalent of half your age when you start the pension. So, if you start at 20 years old you put 10% of your earnings into your pension … but if you don’t start until you are 50 years old then you would need to contribute 25% of your earnings! Start early people, start early.
Thank you so much for your input Richie, I definitely appreciate it and agree! I’ve now started paying into a pension and I the best choice I could have made.
Hi Jordanne,
I completely agree with having strong work/life boundaries. This is especially hard when you are self-employed and work from home. It can be really hard to separate the two. Do you work on your business or do laundry, dishes, make meals….and when everything is under one roof it’s easy to get pulled in too many directions. Also dealing with the people who think that because you work at home you apparently have all this free time on your hands. Working from home does not me you don’t do anything all day! It isn’t always easy that’s for sure.
SharlaAnn
I definitely agree, separating them can be so hard to do, especially when there are 101 tasks mounting up but kids around who just want to play and then a house that needs cleaned, washing that needs done and food shopping needed! It’s hard to balance but finding it is so worth it, even if it is only for a few days lol
The accounting and insurance side to being a business owner are BIG things to consider before taking the plunge. I’ve just started myself and it’s a very steep learning curve. Thanks for sharing this post, Jordanne.
Oh definitely! Something you really have to take seriously and be on top of
Taxes are so important. When I first went self employed I had no idea how much I would have to pay in taxes. It’s good to have some savings.
Very much agree! Taxes are hugely important, especially in business
I walked away from a 32-year career in 2015 to go self-employed. Financially, it worked out. What I didn’t consider – and you cover it beautifully here – was the work-life balance aspect. I ended up almost literally chained to my laptop for up to 16 hours a day. It was a bone of contention in our house. I liked working for myself but the physical and mental drawbacks were huge. I stopped completely for 18 months, while I received treatment for breast cancer (which I blame on lack of exercise!), and took another six months out to build myself back up. Now I’ve opted for a hybrid approach – part-time employed and part-time self-employed. This ensures I get out of the house, have some sort of guaranteed income every month and also a bit of social interaction. The only thing I continued during my absence from the workplace was my blog -which disappeared in a virtual puff of smoke when my small (one-man band) hosting provider died. Now starting from scratch!