Avoiding mistakes will help to make the self employed become successful and these three are about the most common that are made in business, even business that have been going for a while but struggling, if looked at will show there is need to re examine their systems and take note of what follows.
It is not every ones perfect dream to be self employed, most people only dream about the wish. It takes a person with a strong will to set themselves up in self employment, but for those with the aptitude and thirst for success the rewards are there, but it is not easy, as the saying goes if it was easy everyone would be doing it.
Still it is not that difficult either if the budding entrepreneur follows some basic rules.
Do not forget to allow for down time in your business planning and budgets, by this I mean allow for time off, you will need it, putting aside a portion of your earnings into a separate bank account not only earns extra interest and your holiday pay, it can also be the lifesaver for the unexpected, which happens quite a lot in the unplanned business. You must allow for that week away spent with your family, after all this is one of the main reasons for becoming self employed, time off when you want it. And they have earned it too by supporting your venture.
It’s a major step going from working for someone, where a wage is banked to your account regularly, even when you are not in work. Sickness, holidays and public days off, in regular work you get paid for these, not in self employment sounds awful but it is a reality. All is not lost though, you have made the decision and you have done your home work and planned for this, its not unexpected, in fact its something to look forward to.
Not preparing future cash flow forecasts and budgets, although always changing they should be adjusted and studied every month. If this is the first year of operation it becomes even more important to try and stick with what was planned and if you do have variations between actual and budgeted know the reason and act on it. This is a major benefit in avoiding mistake 1 as well. It also helps in the following years planning.
Leaving it too late to ask for assistance: There are lots of people and organizations that want you to succeed from the Inland Revenue Service to your local bank. They all have an ulterior motive in fact, as you succeed so they gain too, so they will assist you to get better. These two organizations are also responsible for closing down and bankrupting more owners and businesses than all your creditors put together, so get them on your side, there is a wealth of information there and they are willing to share it with you for free.
Most businesses are not overnight get rich schemes, in fact it takes years of hard work to succeed and build a profitable business, but there are ways that you can short circuit the success route, this is not rocket science and in fact very obvious if you think about it, but these mistakes happen all the time, don’t go making them.
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