It’s a bold move, but at the same time starting a business can reap the sort of lifestyle that some people only dream of. It’s something that pulls you away from the 9-5 rat race and makes you in complete control of your destiny.
Unfortunately, there’s a reason not everyone does this – it’s an almightily tough task. A lot of businesses fail during their first year or so, and this is enough to put a lot of people off.
One of the main reasons why so many failures appear from the outset is because of a lot of nasty surprises. As such, while we don’t hold all of the answers, today’s post is all about listing some of the unexpected things you need to consider as you bid to become your own boss.
You are now in charge of everything
This first point really shouldn’t be surprising. After all, this is the reason you have become your own boss.
As it turns out, a lot of people completely forget this though and are almost taken aback when they realize that they have to cover everything from marketing to logistics.
Quite often, someone may have designed a fantastic product, but falls short as they just don’t need to cope with all of the other demands that a business throws at you. Bearing this in mind, consider your options for business storage, marketing, accountancy and every other little thing you can think of. You are in charge of everything.
On the subject of accountancy
We’ve just touched upon accountancy, but this is really important point for a lot of new businesses. Even if you are just opting for the sole-trader approach, you are still responsible for your taxes.
Sure, we’ve always paid taxes, but up until now someone else has been responsible for doing all of the math behind them. Suffice to say, this resource has now disappeared, and it’s up to you to get your tax affairs in order or be left with a huge bill at the end of the year.
Always account for seasonality
In business, no two months are the same. Even if your business isn’t hugely affected by seasonality and it operates fairly consistently through the year, there will always be dips at certain times of the year.
For example, let’s take Christmas. You might not be involved in retail, but the days around Christmas will undoubtedly be quieter for you. Offices close down, the streets are empty, and people tend to be at home.
Make sure you budget for these seasonal bouts, regardless of how minor they are, so you can make adjustments to your forecasts.
Staff costs are always more than the salary
This final point might raise a few eyebrows, but it can wreak havoc with your plans if you haven’t thought about it. Your business plan might rely on outside support, but don’t forget that this doesn’t just come at the cost of a salary. There are all sorts of other employee commitments, ranging from tax to pensions, that need to be brought into your accounting.
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