Considering Self-Employment? 4 Common Questions Answered

There are a lot of advantages to self-employment—you have a flexible schedule, you answer only to yourself, and you control how much work you do. However, if you aren’t prepared, these same things can become serious setbacks. Consider these four questions to make sure you are ready for success as your own boss.

What Do I Need to Start?

When you start a job for a company, they set you up with a schedule, computer, and tasks. But when you work for yourself, you have to come up with everything on your own. To switch over to self-employment you’ll need the following:

• A Plan: What are your career goals? How much time will you spend working? How much money do you need to make? Make sure you figure out your priorities. Make a plan not just for short term work but long term growth.

• Work Space: If you plan on hanging out on your couch while you work as a freelance writer or web designer, you may not get much done. Set aside a place where you can focus on work that’s distraction free. When you work for yourself it can be hard to separate your work life from home life, but you need to keep the boundaries clear so you can enjoy both.

• Supplies: If you are working as a freelance photographer, you’ll need a high-quality camera, a variety of lenses, editing software, and a website to display your work. If you are working as a self-employed trucker, you may want to look for used heavy duty trucks for sale and invest in your own set up. Research your industry and make sure you have the supplies you need to do the job right.

How Do I Stay Focused?

One of the hardest parts of working for yourself is staying focused. When you work for someone else, they hold you accountable. Since you won’t have that anymore, find ways to hold yourself accountable. Some ideas include the following:

• Wake up at the same time every day.

• Set specific working hours and stick to them.

• Find productive ways to spend your time when you don’t have regular work coming in. Research your industry or read a book to improve your skills.

• Give yourself deadlines, even if your clients don’t.

• Choose some ways to reward and motivate yourself when you complete tasks. Maybe you will treat yourself to an iced coffee or go out to lunch with a friend.

What Taxes Will I have to Pay?

Don’t forget taxes when you are considering self-employment. You’ll need to file income taxes on the money you make, but you’ll also likely need to pay a self-employment tax.

While the taxes can add up, you may be able to file deductions for your supplies. Did you buy a camera, computer, or truck to do your work? The cost can probably be deducted. You can also look into deducting part of your rent or internet bill if you work from home. Just be sure you are honest and thorough and get help from a professional accountant or tax-preparer if you have questions.

How Do I Find Work?

How you find work will depend on your chosen field, but start with a heavy dose of patience. There is lot of freelance work available, but it may take time to find. Start by looking at online job boards that cater to freelancers.

Make sure your portfolio and references are in order, and then share your plans with your network. Don’t spam all of your friends, but let your Facebook friends, Twitter followers, and LinkedIn contacts know that you are available for freelance work and make sure they know how to reach you with projects.

Working for yourself can be very rewarding if you do it right. Do your homework and make sure you know the answers to the above questions to make sure you are ready.