5 things to know before starting up

So you want to run your own business, and have found the courage to quit your old job and set up on your own. You’re leaving behind all the securities that come with a full time job to meet a host of new challenges. Here are just some of the considerations you should look into before going it alone.

1) Become unsocial

You will need to spend time working on your business which means you may have to stop spending evenings socialising with your friends and use this time to catch up with work. It is important to have a break and you do not want to be working 24/7 but you may just need to limit the number of times per week you go out. Put less pressure on yourself and keep a few evenings a week free. If you win a piece of business or do some fantastic work for a client, go out and celebrate with your friends.

2) Love your PC

Or if you have a Mac, you will start to love that as well. When you have your own business, especially if it is online, you will be spending many hours on your computer.  Make sure you invest in a good quality PC or Mac which is reliable so as not to let you down. It will become your new best friend, helping to complete your work and organise your financial accounts.

3) Become good at maths

Work out how much cash you need every month to run your house and your other personal expenses before you quit the full time job. Then add 30 percent for emergencies. This will be the net profit you will need to take home each month. Once you have this figure, calculate the cost of running the business, additional office rental, computer costs and any other business expenses you will incur monthly. Add both these numbers together and that is how much you will need to bring in each month, net. Remember you will also have to pay tax on the gross amount.

4) Market your niche

Before setting up your business, make sure you are responding to a need in the market place. Are you filling a gap or are you just going to be another competitor in an already saturated environment? Make sure you have a USP and put this on your website and other marketing materials. There are many places that offer good quality printing services which can also help you with your website.

5) Do everything above board

Once you have set up your own company, you will need an ABN (Australian Business Number) to trade with and you will need to put this number on all invoices.

Once you have thought through and planned the 5 points above and are still to keen set up your business, you are ready to set up shop.  Just remember to not worry too much and to learn from any mistakes you make.

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