SELF EMPLOYMENT: The Serious Alternative for Job Seekers

By Bill Benitez

If you keep up with the news, it becomes painfully obvious that more high paying jobs are disappearing every day. What's worse, the job security that many of us counted on is an illusion. A young person can't count on picking the right job and staying till retirement with a good pension. For older jobseekers things are even more serious. Companies now seem to prefer young and less experienced employees that they can usually pay less. Considering this situation it is important to recognize that there is an alternative to holding a job with any company. People change jobs/careers much more often now. During these transition periods, people often consider self-employment. The prospect of being one's own boss, being in complete charge and free from a bureaucracy or an impersonal corporation are all very enticing.

After twenty plus years of being self employed, I know that it is the only path for me. If you find the idea attractive or even compelling, self employment may be right for you. To help you decide if you really want to take the plunge, take some time to learn these ten important basics that are critical to successful self employment.

ONE - Some People Are Not Cut Out For Self Employment. Take a long, honest look at yourself before you decide. To be successfully self-employed, you must be self-disciplined and self-motivated. You are the boss and, at least at the beginning, the only employee. This means setting your own hours, planning your work schedule, and meeting your deadlines. No one will be checking to make certain things get done. During the early years you will have to put in long hours to take care of all details. Many people need someone to tell them how, when, and where to work.

You also need the courage to face the uncertainty of an irregular income source. Health care coverage and retirement benefits will be your responsibility. Finally, you need perseverance because it will take time to develop your business. The rewards are great, but the question is, do you have what it takes? Only you can answer that question.

TWO - Choose the Right Kind of Business. If you are fortunate, you already know the kind of work you really love to do. What is your heart's desire? What do you see yourself doing? Your past employments, hobbies and pastimes are good indicators of your likes and abilities. It may be helpful to make a couple of lists. On one, list the things that you really like to do. On the other, list all the things that you do really well and in which you have experience. Study both lists, narrow it down and then choose.

THREE - Learn All You Can About Your Business. This may involve going to school full-time or just taking classes during the day or evenings. There may be correspondence courses available to help you get started. You may be able to properly educate yourself by reading books and magazine articles. Today there are also many educational and motivational tapes and videos that can be great learning aids. Plus, the online services and the internet is overflowing with valuable information. Seek out people who are doing what you want to do and get as much advice as you can. Watch what they do and try to find ways to do it better and more efficiently. With some effort you'll find a mentor who will help you. Remember that this is important. The more you know about your business, the more successful you will be.

FOUR - Prepare, Prepare, Prepare. Start by calculating how much capital you need to get started and get that together. This figure should include enough to cover your living expenses for at least six months and preferably a year. This is not always possible, but do the best you can. In the beginning, most of what the business generates will be put back into the business for marketing and growth. Start by working out of your home and make certain you get all city, county, or state licenses. Purchase only the supplies and equipment that you absolutely need to operate. Use all the equipment you already own to keep costs down.

FIVE - Keep it SIMPLE! Set up as modestly as possible. Be careful with your reserve funds. Begin simply and move up to as profits increase. Many people start a business with far more space, supplies and "splash" than they need. Pay as you go. Avoid opening accounts until your business is established.

SIX - Advertise Consistently. This can take a big chunk out of your reserves. But once again, you can take a simple route. Advertise in the small weekend or weekly papers, rather than a large daily paper. The rates are lower and the message is in the potential customers hands for a week instead of just a day. Pass out and post flyers in all available locations. Tell everyone you know and meet about your business and pass out business cards. Send out press releases about your business to local newspapers, radio stations, and TV stations. You never know when someone will find your business idea unique and give you some free publicity. This is the best kind of media advertising. Give every customer outstanding service because the best advertising will come from satisfied customers.

SEVEN - Honor Thy Customers/Clients. Remember that customers are the most important part of your business and always treat them with respect. They need your service or product, but you need them more. One of the greatest joys in having your own business is serving others. Handle complaints quickly, efficiently, and compassionately. Remember, it costs ten times as much to get a new customer as to keep one.

EIGHT - Avoid Hiring Employees, Especially During the Beginning. The simplest form of self-employment is a one-person business. If you need help, get family members to assist you. Otherwise, hire subcontractors and make certain you adhere to IRS rules. Having employees can be stressful and costly because of the extra costs of withholding tax, social security, worker's compensation, and even health care. Many very successful self employed people use subcontractors. Keep focused on your goal to be self-employed. If you choose to expand and hire employees, hire an accountant who can advise you about laws or rules concerning employees.

NINE - Charge Enough For Your Work. Many self employed individuals undercharge for their work. This happens through a lack of knowledge of actual costs or a desire to be very competitive. Undercharging can create serious problems for your business. It is foolish to be competitive if you are losing money. Calculate all your costs carefully. There are many costs to consider including rent for your business space and the equipment in that space. You must also consider the costs of operating your business vehicle. Insurance is always a costly item and must be included in your calculations. Finally, don't forget income taxes and a profit of at least 20%

TEN - Be a Good Householder. Keep good, up-to-date records from the very beginning (this may be a part of the business that a family member can handle). Many self employed people put off record keeping for months at a time. When tax time comes, they spend days putting things together. Develop some kind of regular bookkeeping system using your bank statements, a store bought accounting book, or preferably accounting software for your computer. Take care of your equipment with regular maintenance. Keep as much money going back into the business as possible. Pay your income taxes when they are due. You would be surprised how many self employed people have tax problems. Start doing business on a C.O.D. basis, but once you do open accounts, pay all your bills on time. Maintain a savings account for your reserve funds. Make deposits regularly even if they are small. This money will help during tight periods.

BONUS - Be Good To Yourself. Take care of your physical and emotional health. Being self-employed requires lots of stamina, emotional stability, and persistence. Eat well, exercise daily, get plenty of rest, and take time off for relaxation and play.

If you still feel that you have what it takes, now is the time to go for it as a self-employed person.

Bill Benitez has be self employment for over 20 years and wrote "The Self Employment Survival Manual" For complete information visit his website at http://abenitez-ebooksandmore.com or email him at billbenitez@gmail.com