Mistakes Often Made When Working For Yourself
While some people love the structure and predictability of a traditional nine to five job, many others can think of nothing worse. If you’re with the latter, then you may be attracted to the idea of working for yourself. With flexible work hours, an unlimited earning potential, and the chance to do business in your pajamas, self-employment certainly has a lot of appeal. However, this freedom is not without its challenges. Here are six mistakes you need to avoid as a freelancer.
Assuming It Is Easy
Although it may seem like a never-ending vacation at first, self-employment is far from easy or relaxing. In fact, most find they have to work even longer and harder than they did working for someone else. As well as working the projects that pay, you also need to handle a number of other tasks, from business planning to marketing, all of which take times, money, and energy.
Failure To Meet Deadlines
You may have the power to choose your own working hours, but, just like traditional employees, freelancers have deadlines they’re obliged to meet. If you waste hours of your day and leave yourself unable to finish important work, you could land yourself in trouble with a client. Because of this, it’s crucial that you learn to manage your time well and eliminate persistent distractions.
Lack Of Tax Understanding
With PAYE, self-assessments, and IR35 to content with, the tax system can be complicated and confusing for the self-employed. If you’re struggling to understand your obligations and managing your accounts, you can learn more here about accounting packages available. Mistakes with tax payments can be catastrophic, so it’s crucial that you seek help if you need it.
Working Without A Contract
For contractors and freelancers operating mostly online, it can be easy to ignore or forget about important legal aspects of business, like contracts. However, it’s vital that you don’t. Having a contract between you and your client defines expectations on both sides. It also gives you both something to refer back to in the unfortunate circumstance that something goes wrong.
Neglecting To Buy Insurance
Despite what many people believe, home insurance policies very rarely cover tools and equipment used solely for business. This means that, if the equipment were to be damaged or stolen, you’d have to pay for it out of your own pocket. On such a tight budget, this can be tricky. To avoid this risk, ensure that you have the right protection for your company.
Not Marketing Your Business
Working for an employer means having work handed to you to complete. When you work for yourself, however, you often need to go out and find employment. For this to be possible, potential clients need to know who you are, which means marketing yourself and your business. This can feel awkward at first, but you’ll soon get the hang of it.
Being self-employed can certainly be a challenge, but, by avoiding the mistakes listed above, you can accomplish more with much less stress.