There are over five million people currently self-employed in the UK. The majority are either sole traders or owners of microbusinesses. If you are about to join the club, through choice or as a result of losing your job in the pandemic, you must put the right plans in place.
While there are many factors to consider, the following questions should enable you to make a calculated decision.
#1 Is It A Long-Term Prospect?
The harsh reality of managing a business is that there are no guarantees. Nevertheless, you should want to put the odds in your favour by choosing a career that will boast potential longevity. The value of stability has been underlined by the pandemic. Knowing how to become a tree surgeon, for example, carries an even greater appeal than before. Jobs like this, as well as careers in health or other stable industries, are highly advised right now.
If nothing else, it will give you the impetus to tackle the business world in a proactive and confident manner.
#2 Who Is The Customer?
If you are starting a one-person business or becoming a contractor, finding your audience is vital. Otherwise, you run the risk of becoming too generic. It could result in wasted time and money on uninterested demographics while also alienating the right ones. By knowing who the business is aimed at, you will be in a far stronger position to build a telling brand story and get the desired responses. In turn, this should boost efficiency and conversion rates.
Be sure to remember that there are clear contrasts between B2B and B2C, and you won’t go far wrong.
#3 What Expenses Can Be Reduced?
Managing a business will require a financial investment. Not least because there will be several operational costs to cover. Sadly, the more you spend, the more pressure there will be to generate high levels of revenue. Therefore, if it is possible to work from home and remove the financial strain of having an office, you should. Similarly, if any long-distance travel can be lost in favour of video, embrace it.
Spending less money without compromising the quality of your output will enhance your hopes of survival.
#4 Are Additional Revenue Streams Available?
Building a client base won’t be easy, which is why you need to make the most of any customers you do gain. This is especially important in the early phases of running the venture. Think about further products or services that could be used to upsell bigger packages. For example, a hairdresser could sell home hair care products. Depending on the industry, you could generate money from content that educates customers on the topic.
The latter option can open your brand to a wider audience. For selling extra products, timed promos and loyalty schemes are ideal.
#5 Am I Ready To Own A Business
Working for yourself offers many potential benefits. But it’s important to remember that they are only enjoyed under the right circumstances. One of the most important questions to ask, then, is whether you have the personality and discipline to run a company. Millions of people prefer the life of an employee. They can clock in, clock out, and establish a clear work-life balance. Moreover, a set salary makes it easier to manage personal finances.
Conversely, though, if you have the drive and desire to work for yourself, it can be the most rewarding job by far.