For many people, when leaving a job, either due to redundancy or retirement or by choice to be independent, by setting up their own business, it is important to differentiate between: a business and a self employed job.
A business could be defined as a company that provides a service or sells products, and has a staff who fulfil all the functions of the company including sales, admin, delivery, accounts, etc , leaving you to manage the business, to be ‘hands off’, so that if you are not available due to holidays or absence for another reason, the business keeps running … and at the end of the month or year, you take an income, and can take the profits. Also this business entity should have a value, so that in a number of years, you have the option to sell it. However, within this process, you may select and undertake the activities that are most beneficial to the business, such as involvement with marketing or dealing with selected clients or seeking new clients. A business may have only one employee, ( apart from the owner ) But the plan should be to engage more staff as the business grows.
A ‘Self employed Job’ is what it says. You are doing what you were doing when you worked for someone else, but you work for yourself. Instead of this being a good option , apart from the independence, the role gets more difficult and you are now responsible for marketing, finances, accounting and tax returns, stock of supplies, etc etc … and if you decide to take holidays, or time off for any other reason , the income stops ! People assume that, because the previous employer got regular business and employed you , that if you went independent, the same customers would follow you ….. This rarely happens, and the calls come in from people who have gone independent, :”how do I get more clients ?” And we have to advise that it takes time and money, to find new clients, establishing in the process your new business identity.
If you are planning to leave a job at some time in the future, it is possible to plan the new business alongside. But plan it as a business. New name, company formation, services to be delivered, a plan, pricing, marketing, insurances, ( does not need to include your name), funding, accounts, etc . If you are not sure about all these functions, engage someone to advise and assist or manage the whole business set up.
Define your new business, whatever your current circumstances., Instead of planning a Job, ( sometimes called “Just over Broke” ) Plan to get a really good lifestyle with financial freedom. This is the best option, you are taking control of your own, and your family’s future. If unsure about turning your current job into a business, or what business to set up and it might be different from your current job, just ask for advice, from people who have been there and done it !!
The Croydon Business Hub
Startup Assist UK