As a freelancer, a small business owner, or someone who is self-employed, you will wear multiple hats and take on different roles. More so at the start of your journey. You’re providing a service or selling a product but you’re also running your business. How can you do all that effectively?
WHAT TO EXPECT | If you’re considering self-employment, in this post I will uncover the 5 things I wish someone told me before starting my own business.
After leaving my 9 to 5 job, I turned down full-time job opportunities to embark on my self-employment journey. To date, I still turn down exciting roles. The thing is, after having a taste of self-employment, I would not hesitate to do it all over again – even with all the struggles and setbacks.
However, I wish I had a mentor when deciding on giving self-employment a go. I wish there was someone who I could rely on, someone who went through the things that awaited me and guided me through them. I made my way into the self-employed world on my own, knowing absolutely nothing about what it means to work solo and only learned through trial and error. So this is me sharing the 5 things I wish someone told me before becoming self-employed.
1. Plan for financial stability
Being self-employed = having a fluctuating income. Or at least until you manage to bag a couple of retainers. During the first year, you will be forking out money until you get started. So instead of diving into self-employment head first, make sure you have a financial safety net in place. Have a plan B, C, and D just in case.
If you’re providing a service, make sure you have an agreement in place, and don’t be afraid to ask for a deposit. There will be instances where you will have to chase clients to settle the bill for work that you’ve already done. Been there, I’m afraid.
You’ll also need to get ready to handle administrative tasks that might have been alien to you in your previous job. Invoicing, bookkeeping, managing, and financing your business. The best gift you can give yourself is that of orderliness and being organised. So make sure to:
- Track your expenses
- Save up
- Budget
- Create an emergency fund to cover surprise expenses
- Set aside money (in a separate account if need be) for taxes, SSC & Vat contributions
Which brings me to the next one.
2. Understand taxes
The biggest headache of them all. Taxes, Social Security Contributions, and VAT. I can feel my head throb by just mentioning them. But it’s important to understand and keep track of your incomings and goings. For a long time, I winged it on my own using accounting software (which I still use for some things) to track expenses, issue invoices, and all that jazz. More about this here.
I’m quite organised (as you need to be). I keep copies of every single document, invoice, and receipt, digitize them, and save them in their respective folders. When I was just starting out, I was trying to cut costs so I took care of everything myself. But honestly, hiring an accountant was one of the best decisions I’ve ever made. All those anxiety-filled hours I wasted trying to understand and fill in tax forms are now spent doing something productive. Looking back, I would have hired a trusted accountant right from the start.
GEMMA regularly holds free training sessions by industry professionals – so be on the lookout! They also have a handy guidebook on self-employment.
3. Build a strong support network
Connect with like-minded people from your industry. Bounce ideas. Don’t be afraid to collaborate with other freelancers and self-employed individuals because sometimes, working on your own can be quite isolating. I didn’t dive into the networking game in the first year because I was still trying to find my footing. But building connections on socials can be a great thing. Joining groups and communities can also do wonders (1.) to build a network and relationships and (2.) to connect with potential clients. Don’t be afraid to step outside of your comfort zone. It might not feel good at first – with all of the newness and uncertainties that come with taking the leap – but I promise, it will be worth your while in the long run.
4. Set boundaries
When you’re self-employed, the boundaries between work and your personal life tend to blur. There will be days when it gets overwhelming and not just during the first couple of months. Years in, I still get days where I find myself spritzing calming spray in an effort to keep stress at bay. It doesn’t always work, mind you. The trick is to not let it get to that point and escalate. I find it absolutely important to set boundaries and know your limit to prevent burnout and create a healthy life-work balance.
- Take frequent breaks
- Set working hours
- Change scenery
- Get out of the house & go for a walk
- Learn to priortise tasks
- Create a schedule to keep you on track
I have also learned to say ‘no’ when my current workload reaches its capacity. Or when a project is not the best fit for me. There’s no need to be afraid of declining work as long as you do it gracefully and respectfully. When or if the time comes, outsource, delegate, and grow your team. You don’t have to do everything at once or everything by yourself. But take it a step at a time.
So yes, your well-being comes first.
5. Self-Care is a priority
Funny thing when you’re your own boss, no one will think you’re ever busy. What people don’t realise when they see you at a coffee shop at 10 am on a weekday, is that you also work through weekends, and public holidays, wake up early or stay in late to meet deadlines and make ends meet.
During a real conversation I had with an acquaintance a few weeks ago, self-employment made it into the stream. The first thing this person said?
“Being your own boss. I envy your flexibility. You can just take the day off.”
Um, no. Not really. True, flexibility is a big pro which I love but we also work around the clock to make it work. It’s like any other job but with your business directly at stake. It can be demanding and it can be stressful. So it’s SUPER important to go and have that coffee by yourself or with a friend at 10am on a Tuesday. Make time for a walk, relax, spend quality time with your loved ones, and enjoy your hobbies. Whatever helps you unwind and take better care of yourself, do it. Schedule it like you do work. Because if you’re not at your best, if you’re not feeling your best, you can’t give your absolute best.
And there you have it. The first 5 things I would have told myself six years ago when I was just starting out!
↠ MORE ON THIS! I’m sharing my self-employed journey on Instagram and will be showing what I find most helpful over there. Feel free to follow for tips & updates!
Self-Employed? Let’s get you organised! Tools that will help you stay on top of your game right here.
Until next time
Amanda x
Amanda Lia 