Becoming Self-Employed

Are you thinking of making the leap to self-employment? It’s a big call to leave a secure income, to make all the decisions and be the main motivator. There are also perks – you control the schedule, reap the profits from your hard work, plus no more annoying boss… Before you jump in feet-first it pays to think carefully about the pros and cons:

 

  • Do market research: Look into your potential competitors, what’s your point of difference? What demand is there? Is there room for your business in this market? We have a simple plan for you to use as a template.
  • Make a plan: This can be a formal proposal to receive funding or a one-page document for yourself, making a plan makes you think about all the angles and see what you need to do. Click here for our business plan template.
  • Plan your finances: Whether you need substantial money to get off the ground, or enough to cover expenses until you’re profitable you need to think about money. For instance, can you afford to live off a reduced (or potentially non-existent) income for the first 6-12 months? Is this something that would be better part-time? Maybe you could keep your day job and focus on your business as more of a side hustle until you’re ready?
  • Register your business name: Find something that you like and has longevity to it. In today’s age of social media this means checking social handles and websites available – these can be from all around the world so may influence what name you settle on.
  • Get appropriate licences/permits/qualifications: Make sure you have whatever industry registrations you need; it could be getting your kitchen inspected by the council so you can make cakes from home, or just the fact that all businesses need an ABN. Whatever it is make sure you’re doing the right thing, paperwork is part of the process so make sure you’ve dotted those i’s.
  • Figure out how you will do your books: Maybe you know bookwork will not be your strength and you will need to outsource, or maybe you’ll come in for a tutorial with us on Xero cloud-based accounting software at the office.
  • Think about lifestyle changes: How will this impact your lifestyle? Can you still go on holidays with a reduced income, will you need to restructure your mortgage, maybe you can’t keep up with sports clubs or other personal commitments when you’re spending all your time on your business, are you prepared to potentially spend less time with your kids?  
  • What are your tax obligations? Income Tax, GST, PAYG – we can help you with all of this!
  • Loss of benefits: If you’re no longer employed by someone else you might not have the luxury of annual leave or sick leave. You will need to factor this in.
  • Risk protection: There are many risk factors to consider, whether it’s financial risk, legal risk, operational and environmental risk or privacy and information risks. By thinking about these things early on you can put systems in place to protect yourself.

 

Running your own business can be rewarding, but it involves hard work, planning, commitment and a little bit of luck. Many Mackenzie + Co clients run their own businesses already, so we are very experienced in getting a business up and running and helping keep it on track. Book in with Dan or Ross today to discuss your business ideas.

Email: practice@mackenco.com.au

 

P.S. For inspiration on starting your own business check out these podcasts that interview successful entrepreneurs, How I Built This and The Dent, well worth a listen!

 

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