Self-employment is growing in popularity among workers of all ages. In addition, working as an individual entrepreneur can provide new opportunities that may not be available in a corporate setting.
Despite its benefits, self-employment also presents some challenges. The two biggest challenges are stable income and general interest. If you’re interested in becoming an independent worker, knowing the right steps can help take the guesswork out of you and put you on the path to success. Below we have summarized some of the most important things to consider before starting your own business.
Create a Business Plan
One of the best things an individual entrepreneur can do is develop a business plan. This is a great way to make sure you have a clear idea of what your business should look like and what you’re working towards.
If you don’t currently have a business plan, use the business plan guide to get you started. Not only will you learn how to formulate your unique selling proposition, but you will also learn how to set your mission and set actionable goals. Together, these three elements can help you take your business to the next level.
Focus on Consistent Sources of Revenue
Once you have a business plan in place, it’s time to start thinking about income. The amount can vary widely depending on your business model and growth goals, but it should at least cover your business expenses and provide you with the income you need to maintain your lifestyle.
Whenever possible, we also recommend diversifying your sources of income. For example, if you have two clients who provide the bulk of your revenue, it’s important to have other potential clients lined up in case anything happens. If one of your existing clients falls through or decides to move in a different direction, this will help you replace your revenue quickly without having to pivot your business.
Benefits for solopreneurs
Finally, it’s time to consider the benefits. While individual entrepreneur benefits may not be as straightforward as employer-sponsored benefits, there are several promising options. These include affordable, separately purchased benefits designed for independent workers.
Depending on your needs, you can choose from several of these benefits, or choose the ones most relevant to you. When it comes to health insurance, the Professional Agencies and Affordable Care Act (ACA) can be a good place to start. Both offer a variety of options depending on your budget and situation.
Becoming a solo entrepreneur can be a great way to increase flexibility and gain more control over your career. While self-employment can present some challenges, it can also be richly rewarding. The key to making it work for you is to be proactive and plan ahead. With thoughtful business strategies and personalized benefits, you can take the guesswork out of the process and make your business dreams come true.