Starting out in business
It’s a good idea right from the outset to decide wether it’s your intension to work self employed freelance or are targeting setting up a bigger business with employees.
Pros and cons with freelance business
Plus side to self-employed freelance businesses are
- It’s minimalist, simple accounts and tax
- speed and simplicity of decision making – although working along can cause you to have ‘inner debates which zap time and energy’ This is when it can be could be be part of a freelance network.
- Low start up costs
- Certain work from home business expenses are tax deductible, or part deductible against income
- Enables you to pivot and expand freely – no partners or shareholder consents needed!
- + a few more to add as I remind myself!
Potential downsides to freelancing
- It can limit your ability to expand or think big
- If you do not plan your freelance work to be bigger business like, it will always be difficult to scale, which means in effect you are always employing yourself, or even if you structure as a Limited company / LLC, you’re basically an employee of your own business.
- Freelancers have a tendency to look at their competitors and then try to compete or under-cut prices. In reality no one wins from having the lowest price. You’re customers get a minimal service, because you want to be cheap and you earn less for working more!
There’s a saying ‘If you can’t compete on quality don’t enter the race’
Freelancers – self employed who are thinking more business like from the outset, will have a much greater opportunity to scale their business, employ people to do the day day day tasks who are better at it than you! There’s then greater potential to build a bigger business, a brand which can operate without your own daily sacrifice of time for money.
Of-course, money or bigger business may not be your primary goal if you’re simply following a passion or perhaps it’s a part time hobby type business, which is a good live-work balance for many people. I’ve personally worked in these formats when my primary desire was to balance freedom with control of earnings and lifestyle, working as a freelance photographer and later as a format to travel, ride motorcycles around the World and organise overland expeditions. * If any of those lifestyle businesses are interesting you – I am available to help new start ups, or freelancers with some direct 1to1 mentoring, by phone or in person. Email me using the contact form and I can send you an initial free overview of how I can help.
The Route 1 Million venturers handbook – will include lots more insights and fast action advice.
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