Being your own boss involves more than finding clients and working long hours. Here's how to work for yourself, from legal requirements to growth.
Want to start a profitable self-employed job but don't know where to start? We've got you covered.
Here's everything you need to know about how to work for yourself and succeeding on the first try.
A self-employed individual is someone who independently works with clients, often as an independent contractor, agent, or freelancer, instead of working for an employer. Real estate agents, freelance graphic designers, and lawyers are common examples of self-employed individuals.
Entrepreneurs who run an online business can also say that they work for themselves.
The primary difference between self-employment and a day-to-day job at a company is that you'll have to do all the administrative work and social media management in addition to being the money maker.
But you'll also have all the freedom and control over your business, which often means significantly more money.
You'll have to motivate and push yourself to be productive and consistent, and you'll occasionally have to work with demanding clients if it means staying in business.
To better understand what it means to be self-employed, let's look at a few arguments for and against it.
If you've determined to start your self-employment journey, here's how you can go about it:
Before you start with self-employment, you should first assess your set of skills, education, and certification in your field.
For example, if you're already a real estate agent working for an agency and now want to become self-employed, you already have a good idea of what the job entails. But if you don't even have a real estate license, then your first step should be to get one.
Of course, this doesn't just apply to real estate—it applies to whatever industry you're in.
Regardless of your industry, you should first obtain one or two certificates from reputable institutions to establish your credibility and your business's legitimacy. This will be the foundation of your self-employed business.
Meeting the right professionals in your industry often happens organically and takes time, but you can speed it up in a few different ways; it's best done while you still have a full-time job.
Be active on business social media platforms like LinkedIn and Dribbble. Participate in online and in-person events and seminars. Sign up for an online course. Join forum and Discord discussions.
Whatever means you use to meet people, it'll set you up for long-term success when you go solo. You'll have access to both clients and professionals whose services you could later employ.
Don't skip this step under any circumstances, as you'll find it impossible to succeed without the support of your peers. Not only can they refer your services to potential clients through word of mouth, but they may also open doors to potential collaborations and projects.
One of the main reasons why businesses fail is an inadequate business strategy.
While it's true that entrepreneurs have to dive into the deep end and only then learn how to swim, you could benefit from a concrete plan before you jump.
The first step is to perform thorough market research in the industry. Look for potential gaps that you could fill, identify your main competitors, and figure out whether there's room for you.
Also, do some financial planning.
You may not need a million bucks to start a fast-food restaurant, but you could ask companies to sponsor you by providing you with equipment in exchange for equity or promotions. The essence is that you figure out what costs you'll have to cover and look for alternative funding sources besides hard money loans.
Do you think that you have the best business idea in the world?
You should first ask your friends, family, and peers in the industry for feedback. If they agree, then you're probably good to go. But if not, ask them what you could do to maximize your chances at success and refine your business plan.
They may be able to identify an oversight in your plan, such as a lack of long-term sustainability or a lack of a target audience in your area. Be open to their feedback because they'll think as a potential customer.
For instance, you wouldn't want to open a sushi restaurant 300 miles (482 km) away from the coast because getting fresh fish every day would be an expensive endeavor.
Don't worry too much about the seriousness of this step—even some solo freelancers register LLCs to boost the legitimacy of their business or if they co-run the service with someone.
And although starting an LLC is entirely optional, it can help you with branding and legal paperwork.
Consult with a legal professional to make sure you make the right decision on what type of business to register.
For tax requirements, check the IRS Self-Employed Individuals Tax Center for more information.
Depending on the type of work you do, you may need a license, permit, or some other type of legal document to operate in your field.
Here are a few common types of licenses you need to be self-employed:
Remember, it's best to check your local laws and ask professionals in your area for advice on what documents you'll need.
Forbes reports that the IRS suggests small business owners open separate bank accounts for their business.
It may even be a prerequisite if you want to apply for a loan, get investments, or are a real estate investor.
Separating your personal and business bank accounts has several advantages:
Now comes the exciting part of becoming a self-employed professional. It's time to create a brand that people will come to associate with the quality of your product or service.
If you're starting an online or casual in-person business, such as a coffee shop or clothing store, your brand means everything at the start. People will click on your Instagram ads or stop by your shop only if you manage to attract their attention. And now more than ever, it's essential that you do it through originality.
That said, create an attractive logo for your business (hire a self-employed graphic designer to support their business). Pick a color palette that you like and stick to it all throughout.
You should also seriously consider building a website for your business, regardless of the type of work you do. Lawyers, stores, consultants, creative professionals, and event planners can all benefit from a simple website that allows their customer base to contact them and place orders.
In addition to having a site, you should have a strong presence on relevant social media platforms.
If you're a real estate agent or lawyer and your business is primarily done in person, purchase traditional billboard and newspaper ads to reach a senior audience that may not use Instagram.
By now, you should have launched your business and started getting regulars, which means it's time for the next step: growing your business.
The best way to expand your business and ensure client retention is to offer something your competitors don't have. It could be a lower price, better customer service, a better product, or all of the aforementioned.
Let's break down a few different ways you can grow your business venture as a self-employed individual.
Remember Step 2? Well, here it is again. The key difference is that your goal now is to promote your existing business rather than casual networking.
Online and in-person events, such as workshops, seminars, and conferences, are an incredible opportunity to promote your services to anyone listening.
Even if a potential client isn't in the crowd, it doesn't mean that your presentation won't be heard. Some of your peers will remember you and reference your work, which all helps business in the long run.
Think about a new, creative way to help your clientele. Identify their needs and find a way to address their issues by offering a brand-new service that'll convert into more income for you.
Do your clients need someone who appraises a property value? Or maybe they need someone who can restore unique historical features in a home?
Whatever their problem is, your job is to listen to them and find a way to solve it.
And if you can't do it, consider looking for external help and be the middleman between your client and your partner or contractor. You can then take a decent paycheck of that share for yourself.
Remember, you're at the core part of your business, and it's only as good as your service is.
That's why it's vital you stay motivated and continue pursuing education and training to provide the best service possible. Not to mention that having a dozen certificates hanging in your office will instantly improve your credibility, gaining your client's trust.
Every self-employed individual needs to keep up if they want to stay in business, and with no boss to tell you what to do, it gets hard fast.
One way to stay in touch with ever-shifting business trends is to regularly read the news from reputable publications in your field. Or you can regularly check LinkedIn and pray you won't miss something important.
But the best way to keep up is to join communities, both online and in the real world.
Yes, you can work for yourself without starting a business as a freelancer or independent contractor, and you'll be legally considered self-employed for tax purposes.
Freelancers and contractors rely on contract-based work arrangements with clients and companies. Note that you'll still be responsible for all paperwork as a freelancer.
It's not inherently harder to work for yourself than someone else. It poses some unique challenges, such as having sufficient self-discipline to push yourself, proper time management, and doing additional non-work-related tasks, but it gets easier after you've had time to adjust.
You can run almost any type of business by yourself. Pick a business where you've already built a network and are skilled and interested in. Freelance and consulting services, creative work, and selling online are all perfect for independent work.
Some of the best jobs to work alone include real estate agent, lawyer, construction contractor, advisor, mechanic, and personal trainer.
Traditional freelance roles are also excellent—become a virtual assistant, social media manager, or web designer, or try your hand at digital marketing, freelance writing, and graphic design.
Being self-employed has its merits, and if you follow this guide to the tee, you'll succeed regardless of the type of work you plan to do. To maximize your chances at success, stay consistent and strive for self-improvement.
Before you even start working for yourself, you should minimize risk by surrounding yourself with a strong network of peers and potential clients.
Are you already self-employed or plan to be soon? Let us know in the comments below, and make sure to share this article with any friends interested in starting a business!
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