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Running your own business is great – it gives a freedom that many jobs can’t provide – especially if you have young children but there is also plenty you should consider before starting up your own small business.
Having their own business is the dream for many – whether it’s something small and crafty or something bigger like wedding planning there are loads of advantages to working for yourself. However, it’s also something that needs series thought. While picking and choosing your own is amazing, having an income that massively fluctuates month to month can be challenging. And don’t even get me started on the need to chase invoices and companies refusing to pay late fees. It’s not all bad though – here are my top 5 things to think about when setting up your own small business.
Finding the cash to start up a new business can be tricky – there may be equipment that you need to buy, money for website building and advertising or even advance rent on a shop or premises you need. This is of course on top of money you’d need to have set aside to cover your normal bills etc while your business builds as it’s unlikely you’d be turning a huge profit in the first few months. Your usual bank may be a great starting point for a loan or you try a company that specializes in small business loans such as Boost Capital.
2 Social Media
Social media is one of the biggest tools that any small business has at their disposal for advertising and marketing and the best part is it’s completely free. Starting out with a competition to win one of your products or services for free is a great way to create a buzz around a new business and help spread the word about what you doing. Take some time to set up social media channels before you officially launch and be sure to keep them updated regularly.
3. Being Self Employed
Being Self Employed comes with both major advantages and major pitfalls so proper research into whether this really is the right path for you is essential. On top of that there is of course the annual dreaded tax return to fill in too – be sure too keep detailed records (I use Quickbooks) and file your return as early as you possibly can (says she who did it less than a week before the deadline the last two years – note to self, must try harder!)
Being self employed can affect benefits we often take for granted, such as Maternity and Paternity pay, so if you plan on starting family in the near future make sure you do plenty of research first.
4. Small Business Plan
Having a good business plan is essential to things running smoothly ensuring your small business sets off on the right foot. It will help you see the business idea as a whole and should determine whether or not your business is going to be profitable.
5. Pricing & Hidden Costs
When starting up a new small business it can be easy to overlook certain costs that may actually be essential to your business and how you price the items or service that you are selling.
- If you are a small craft business then don’t forget to factor in the cost of selling and paypal fees for sites like eBay and Etsy and the cost of packing and posting products.
- General costs such as insurance and maintenance of essential equipment should also be considered.
- If you plan to sell at craft fairs these often charge for a pitch -make sure it’ll be busy enough to cover your fees.
- Also don’t forget to factor in the cost of your time and then tax etc on top.