So you want to be self-employed!

Planning to start a business is very exciting; it seems like all your dreams will come true. The champagne will be flowing, and you will love your life!

The common advice

There are plenty of people that will say you need to write a business plan, but what even is a business plan?

Generally, it outlines your business and includes things like financials and traditionally a S.W.O.T analysis of your idea. This simple analysis can be a little too dull and not work to give you a realistic view of what you are trying to do.

S = Strengths

W = Weaknesses

O = Opportunities

T = Threats

Strengths — what are the strengths of your business idea?

Weaknesses — Does your idea have any weaknesses?

Opportunities — What opportunities will there be for your business?

Threats — Are there any threats to your business idea?

The plan

For me, a business plan can be many things, and it can be written by hand, on a whiteboard, in a book or on a computer; the medium does not matter. Just make yourself a plan to keep working on and add to overtime.

I, however, like to look a little deeper when it comes to a business plan. Looking at things like this…

• Vision
• Mission
• Objectives
• Strategies
• Action plan

I will explain these steps…

Your business idea

If you have never been in business before then, please keep reading. Or, if you are in business and feel you need to do a little reset, this article is also for you.

If you have tried starting a business and failed, it may be time to start again and get a few more things correct.

If you have failed before, that is ok. You need to keep going and learn from your mistakes.

Fail better each time until you succeed

Myself — I have been self-employed for more than 25 years. It has not always been a smooth ride, and I have learned a lot. And I have run other people's businesses for them.

Now I’m feeling old…

This article intends to give you some of the tools you will need to get started on your business today. To critically view your idea and look at the costs and benefits.

Be realistic but also know that while risks are involved, you sometimes have to leap and give things a go. Remember that there may never be a perfect time to start.

Being self-employed has given me the flexibility to create a work-life balance that I genuinely appreciate. It is something you can have too.

Being self-employed means that you get to make the choices.

You get to say yes or no to work and how your business grows and changes over the years. Ultimately this is why you are choosing to be self-employed in the first place, to have choices!

Remember that it is hard work; just as anything worthwhile and rewarding, you need to put effort into achieving the results you desire.

Self Employment

Being self-employed can mean working long hours, no paid holidays, no leave to think about your business and no time to switch off and forget.

You are working or thinking about your business for 24 hours and seven days each week. Plus, there is no paid sick leave; you potentially will still have to work when you are unwell.

Sounds like fun — I hear you say… Yes, I completely agree!

It would be best to remember that being an employee is VERY different from working for yourself. There is no one else to empty the bins, pay the bills, find the work, deal with demanding clients, stay on top of the accounts and much more.

Going into business can be challenging if you are coming from a corporate environment to a small business, you will be in for a significant change. In my experience, many of these people struggle with the change. If this is you, keep in mind that you are in for a learning curve and potentially a very steep one!

You may have felt that you were always thinking about working within your job, but this is nothing compared to self-employment.

It would help if you did plenty of research and planning before starting; however, this may still not prepare you enough.

Working for yourself can be extremely rewarding, but it can also be very draining and stressful. There are many ways that you can be stressed, you can be stressed because there is no work, but you can also be stressed if there is too much work.

If you think about how you will cope with these things before getting started, it should be more manageable once you run your business.

The start

Perhaps you have always worked for other people, and you have decided that you need to leap into being self-employed. You may feel used and abused in your current position, see opportunities elsewhere, or need a change.

The dream of being self-employed has the potential to enhance your lifestyle long-term.

Maybe you are dreaming of the 4 hour work week! The early years will not ever be a 4-hour workweek — sorry! This has to be your end goal if this is your goal.

Whatever your reason for being self-employed, the start can be the most critical part. Start by making sure that you put plans in place and have enough money behind your new business.

Generally speaking, starting a business will cost a lot more than you expect, so it is essential to have a contingency in place. This contingency may be to keep your current job or keep working part-time to ensure you have an income. Or it may be other savings that you have access to if you need them while growing your business.

One of the most common reasons for business failure is running out of money.

Success

What is your definition of success? For everyone, this is different!

Is it financial, or is it emotional?

Or is it the hours you work so that you can be there for your family!

Choices

• Will you be in business by yourself or with others?
• Will you run it from your home or will you need a premises?
• Do you have an accountant and a lawyer?
• How long can you go without an income?
• How much money will you need?
• How long will it take to earn your first $100 or your first $10,000?
• Do you have a contingency plan if it takes longer than expected?
• Can you start this business while you are still employed?
• Will this be a permanent side hustle?

A 5 step business plan

Vision — What are you building? Where do you want your business to go in the future? This vision should illustrate what you are building and the long term view for your business.

Once you are running your business, your vision for the company may change, and that’s ok.

Example: To be a nationally recognised premier deliverer of business based affordable education.

Mission — Why does this business exist? Who do we provide product or service for, what is that product or service, and why do they need it. What are the benefits of your product or service?

Example: To simplify the process of delivering education to business owners, needed for the delivery of continuous learning for various industries.

Objectives — What will you measure? Basic financial projections for the next 1 to 2 years. Make these achievable targets and work out the strategies and actions to achieve them.

Example: $50,000 year one by sales of 2 courses each week

$100,000 year two by sales of 4 courses each week

These sales will be achieved with extensive advertising across Google and Social media at the cost of $$$

Strategies — What will make this successful over time? How will the business continue to grow and evolve? Social Media, SEO, endorsements, articles published, blogging, national recognition and collaboration. The inclusion of an exit strategy for the sale of the business in XYZ years.

Example: Facebook, Twitter, SEO professional, Google, business blogs, etc. Aim to retain the business and add to the product base from other professionals.

Action Plans — What is the work that is to be done? How much will it cost, what steps do you need to take, and in what order?

Here you can be more specific and create a timeline of actions.

Example: Business structure, product development, marketing plans, cost structure, future staff requirements, launch plans…

Are you ready

These days there is endless advice on almost everything. It is essential to do your research and take from that research in a way that will help you and your business.

Be cautious not to take and follow advice blindly; it is your business, after all.

While your friends and family will generally respond positively, some will try to derail you, and they will be the negative nellies and the naysayers. If you have done your research and feel ready to take a well-thought-out leap, go for it!

Don’t let the negative nellies stop you or hold you back!

In reality, you may never be ready, and there may never be a right time; sometimes, you just have to leap and learn how to swim.

I wish you every success, and I would love to hear about your plans in the comments; I am happy to help with advice.

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Thanks, Kelly