Tips on Becoming Self-Employed

When talking about being self-employed it draws many different pictures to many people. For some being self-employed is being a consultant, a subcontractor, a freelance writer or artist, accounting, running a daycare, floral design, wedding planner, the list goes on and on. As different as all these jobs may be, the decision to become self employed and what goes along with being self-employed remains the same no matter what field your in.

With many people finding themselves out of work under a troubled economy now couldn’t be a better time to consider becoming self-employed. But there are a number of things you should think about before taking the leap.

• How’s the Industry? Is industry your considering entering established? Is it crowed with competitors? Maybe the career you’ve worked in up until now can give you a built in network or edge when building a client base, because you’ve already been in the industry.
• What are the logistics? Can you work from home or will you have to find an office? Working from home can save you a lot of money and provide some extra tax incentives. If you have a computer, printer, fax, phone, scanner and a handful of other home office essentials, working form home might be the way to go.
• What’s your back-up plan? If you have a spouse who has a job that offers health benefits make sure you use them. Otherwise check into unions for the type of work your doing and you may be able to find group plans that can help you get health insurance for your family at discounted rates. Also, whenever possible when starting a new line of work for yourself, having at least 6 months worth of expenses in the bank is always a smart idea. Though not many of us can do that these days…
• Pay the Taxman. Make sure you talk to your accountant or at the very least research it on your own online to see what you can and cant deduct for taxes and make sure you keep detailed records and copies of everything you do for your business. Remember, if your spouse is working you can set up to have YOUR taxes deducted from their paycheck. A smart move that can save you from having to owe at the end of the year.

Remember that being self-employed has many ups and downs but it can give you more freedom and satisfaction than any regular employment could ever give you. Good luck!