You'll need the right personal qualities and business skills to make a success of self-employment. Try to assess your character and ask colleagues, friends and family to give you an honest view of your qualities.
Personal qualities needed for success
The main factors for success in starting a small business are:
- Determination and drive.
- Clear objectives.
- The ability to work hard.
- The readiness to listen and learn.
- Common sense and realism.
- A definite focus.
Business skills needed for success
If you're a mechanic, musician or beautician, your business may be based on your specific skills. Whatever your line of work, you'll need to have the right business skills too. Take a look at other businesses to see the variety of skills and knowledge you might need, such as:
- Time management
- Accountancy
- IT
- Marketing
- Sales (selling yourself and your idea to lenders, investors, potential partners and employees, and also selling your products and services to customers)
You may have all these skills already or want to take on an employee, consultant or freelancer to provide some of them for you. You could even learn some new skills yourself.
Tax and National Insurance know how
If you become self-employed you'll need to register with HM Revenue and Customs (HMRC), either online or by calling 0300 200 3500. They'll send you a guide to starting up in business that explains the records you'll need to keep, how to pay your National Insurance and how they'll calculate your tax.
You'll be sent a self-assessment tax return to fill in every year. So you'll need to be organised about keeping records and completing your return on time. Find out more information on how HMRC can help you.
Protecting your family life
Working for yourself can dramatically change your lifestyle. For example, regular working hours could be a thing of the past, so make sure you're ready.
- Talk with family and friends about how your life will change, and what it could mean for them.
- Make sure that anyone who depends on you understands that your income could fall in the short term and could be less predictable in the future.
- Be prepared for increased financial and emotional pressure on you and your family.