It is a dream of many across the world to become their own boss. For many people the realistic job is working nine-to-five which unfortunately comes alongside the unknown of whether you are going to be made redundant or other inside factors such as strict bosses and micromanaging.
Many begin to develop their own business or side hustle with the overall goal of becoming their own boss. This Is usually done through going freelance.
Being your own boss means you have full control over everything with the business. The responsibilities obviously double as you will be in charge of various decisions including working hours, figuring out the pricing for your services and other internal decisions that help the business run.
You might already be thinking how complicated this process might be but worry not. This article will cover various things you need to transition from employment to being your own boss.
Understanding legal requirements and paying non-employees
There is more to being your own boss than managing the workload. It also includes pulling all the strings dictating your businesses paperwork. Therefore, setting up the company under the correct legal business entities and legal requirements is recommended.
Paying for projects may also be challenging, mainly if the company deals with non-employees like contractors and freelancers who require proper payment handling. Tools like QuickBooks 1099 kits simplify this process and ensure compliance with all tax laws.
Mastering time management
Under your usual nine-to-five you will have known the importance of time management. As your own boss time management is one of your greatest assets. Having full control of when you work means you will more than likely not stick to a traditional work schedule. So, it is crucial for you to manage your day-to-day activities and create a schedule so that you have a clear definition of which is work time and which is family time. There are various calendar tools that can help you correctly plan out a clear and precise schedule.
One thing to make clear is your responsibilities. If responsibilities aren’t determined, work can become invasive and can encroach on nearly every aspect of a person’s existence. Whether you choose to create your own business or choose to go freelance, create a defined structure that helps you prevent burnout whilst maintaining high efficiency.
Building a solid financial foundation
Being your own boss means the most daunting part of this journey is the financial management. Being the boss means you are fully responsible for all the revenue, expenses and taxes, that is until you hire someone for that role.
The first level of financial management is the distinction between personal cash and cash belonging to the enterprise. The best advice is to open a new business account to make bookkeeping more accessible during tax preparation. The last element to consider is saving for taxes. As you will discover, you will not have an employer making tax deductions for you, so you must save for them so that you do not get into trouble with the IRS and the federal government.
The benefits of being your own boss
There are more benefits to being your own boss than you may realize. They include:
- Working at your convenience
- Working from any location
- Making decisions as per your vision
- Developing various skills like problem-solving, budgeting, and marketing
Challenges to Expect
As good as being your boss can be, it also has unique problems. They include:
- Lack of company: Loneliness is common, especially if you come from a work-to-work climate where you collaborate with your colleagues. To counter this, find other business owners or seek out business networking organizations for support.
- Income fluctuation: Earnings can be high in one period and extremely low in another. Your startup valuation can be low in the initial two to three years. Revenue might start streaming in later years or months. It is advisable to save for the low-earning months and years.
- Decision fatigue: Being in charge of all your choices at work might be overwhelming. Decision fatigue can be overcome by setting specific goals and prioritizing some over others.
Conclusion
Developing a business or side hustle so that you become your own boss is exciting however it is important to remember how daunting and challenging achieving your goals will be. It requires organization, time management, and the desire to learn and improve those skills.
Startup founders should remember that paying employees is one of the most crucial aspects defining the efficiency of any startup’s practical financial management. Utilizing newly developed tools and systems will make all the processes easier and efficient. Besides that, they should also remember that building up a startup has its ups and downs. Regardless, you can develop a robust and persistent personality that will push you to build the business
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