You're thinking of starting your own business. What are some common mistakes to avoid in self-employment?

Starting your own business is exciting, but watch out for these common pitfalls! First off, don't underestimate the importance of market research – make sure there's a demand for your product or service before diving in. Avoid overspending on flashy stuff too soon; keep those expenses lean and mean. Oh, and don't forget about legal stuff like contracts and permits – better safe than sorry! Lastly, don't go it alone – surround yourself with a solid support system of mentors, advisors, and fellow entrepreneurs to bounce ideas off and keep you sane. You've got this!

Starting a business is hard work and takes real commitment! Seek advice from professionals. Continue your education about your business (product or service). Expand your network. Set realistic goals. Prioritize your time management. Take deep breaths when you feel overwhelmed. Good luck!

Plan, yes. But don't plan forever. Have a flexible plan. Be ready to deal with unexpected things. Often we lean more with mistakes than with what went right. I love to learn with the mistakes from others. It's much better than with your own! So check what others did and went wrong. Try to learn from there mistakes.

Work backwards. To be successful in your business, determine what revenue you need to generate. Then ask yourself how many clients do I need to generate that revenue and what is the cost of acquistion per client.

Start with the end in mind - have a long term goal to focus on and use that to be your guiding light. Avoid Short-termism, quick wins can easily become long term losses.

As a CPA, the #1 mistake I see is people not setting aside money for income tax and self-employment tax. People need to set aside 1/3 of the revenue coming in for taxes, and they need to make quarterly estimated tax payments throughout the year to both IRS and their states that have income tax. Another common mistake is not registering for a business license BEFORE starting a business. In Atlanta, the late filing penalty is $500, no abatement. That is a chunk for a fledgling business.

As a business banker I have seen several business owners grow too fast and not know how to handle it. Some make bad hiring choices, some take on unnecessary debt, and others just get overwhelmed. Having a good financial team around them to communicate and plan with makes a huge difference.

Another common pitfall for self-employed individuals is neglecting their finances. As an executive coach, I stress the critical importance of meticulous financial management. Your business's financial health is paramount, requiring careful tracking of income and expenses, setting aside funds for taxes, building emergency savings, investing in growth, and ensuring fair compensation for yourself. To sidestep this oversight, consider employing reliable accounting software, hiring a skilled accountant or bookkeeper, or pursuing financial literacy training. Additionally, maintain separate personal and business accounts, establish a budget, and regularly review financial statements to maintain fiscal discipline and sustain long-term success.

Quando iniciei minha empresa e com pouca experiência em comércio caímos em alguns erros com compras exageradas acreditando que o giro seria capaz de cobrir todos os custos. Aprendemos e estudamos através de cursos presenciais e online, na maioria gratuitos e reformulamos toda a forma de compra e gastos na empresa. Hoje temos como maior preocupação o controle financeiro, com as receitas, custos e despesas e assim estamos conseguindo nos reorganizar e colocar tudo em ordem. Usarmos ERP adequado para o tipo de negócio, planilhas de controle, metodologia de publicidade e continuamos em busca de novos tipos de controle afim de minimizar qualquer outro de tipo de falha. Tem valido muito a pena.

That all sounds nice in theory but when starting a business, the reality is that you need to work long hours, long days, weeks, months and years. There is no easy way to build a company from scratch. So, boundaries are good but so is working smart. Is the activity tied to revenue generation? If so, you have to do it. If it's not, then you can deprioritize it. Compromise on the things that are less important to your survival as a business. So that if you have to take time away from family and friends, at least make sure it's to work on the things that absolutely matter. For instance, don't miss your kid's soccer game because you are reviewing font colors on your logo...

One of the challenges you may encounter when you're self-employed is the tendency to mix your personal and work life. The freedom that comes with being your own boss can also bring along a heavy workload and stress. You might find yourself working extra hours, handling more clients, or trying to meet every demand, which can result in burnout or frustration. To prevent this, it's crucial to set distinct boundaries for yourself and your clients. Create a consistent work schedule, set up a dedicated workspace, and establish a clear communication strategy. Remember, it's okay to say no, delegate, or outsource tasks that are outside of your primary skills.

Some of the biggest challenges to a small business owner or a self-employed professional center around a major Catch-22. At some point you need to be working IN the business to get tasks done. You also need to be working ON the business to ensure you have a pipeline, systems, etc. The key is setting dedicated time to working ON the business, which might include delegating or outsourcing things that are not your expertise, and be willing to trust that there may be someone else who can do it better & more efficiently. The challenge is trying to fit that into a 40-hour week. The simple truth is you might not. The definition of an entrepreneur is someone who will work 90 hours a week for themselves to avoid working 40 for someone else.

One common mistake to avoid is neglecting to set clear boundaries between personal and business finances. It's crucial to maintain separate accounts and track expenses meticulously to ensure accurate tax filings and financial analysis.

Starting your own business is exciting, but it's hard work. People need to understand that you can say no. No to friends and relatives asking for a discount, no to clients/customers that you can't handle. People need to keep personal and business accounts separate. Hire somebody to help you set up your books. Yes, there is a cost involved, but you'll be better off in the long run. As a new business, you need to spend time running your business, but you also need to spend time marketing your business. It can be demanding.

92% of insurance agents don't make it past their first year in the industry. If we take shift our attention to independent self-employed agents, I'm 100% sure that number is considerably higher. They all have 1 thing in common. They didn't market themselves. LEADS ARE NOT THE ANSWER. Agents are so consumed with buying leads being the answer that they miss the mark completely. The answer is networking, and becoming self-sustaining where leads are not necessary. There is a 60% higher chance in closing a sale if it comes from a referral. SOLUTION: Generate referral partnerships. Find captive/semi-captive agents that can't write what you can, and find products they can't write. Use LinkedIn, call local agencies, etc. That's the answer.

This is the greatest challenge that new entrepreneurs face, especially if they've spent most of their career being an individual contributor and relying on fellow colleagues for feedback and advocacy. This requires a mindset shift but also an identity shift. YOU have to be your greatest supporter and campaigner, and your success is almost entirely dependent on the faith and confidence you have in yourself, despite the days, weeks, or months where you may not have any real "progress."

Start first with your unique value proposition. Then make sure every conversation you have, whether at a grocery store, on a social channel, at a conference, or through an email, directly speaks to this value proposition. What problem do you solve, and how are you unique qualified to solve that problem? Dedicate as much time as you can every week on business development. Don't buy ads and do expensive marketing though until you really know what problem you are solving and why people should work with you. Make sure your web properties call that out so that when you run an ad, it will have a better chance of converting.

Learn how to market your business AUTHENTICALLY. It’s not about promotion. Serve don’t sell. Relationships are key. Build more of them every day. Learn to market your business value, not yourself. You are NOT the business (even if you’re a soloprenuer) If you don’t learn how to market the business, nothing else matters.

No creo que una pyme deba apoyarse en nombres sino en productos que sugieran como son sus directivos. Los directivos no son tan perfectos y a veces empañan los resultados de esos productos excelentes. Gente no tan excelente puede generar productos todos excelentes. Entonces el mercado supone que la empresa es tan exitosa como sus productos y por tanto también lo son sus directivos. Todo esto sumado a que la falta de experiencia también juega en contra de la imagen del negocio, donde lo mas importante es el producto o servicio excelente. Quizás luego de 20 años los directivos sean tan excelentes como los productos y puedan mostrarse sin empañar los resultados logrados. Esa es mi mirada.

Self-employed individuals often try to do everything themselves, which can lead to burnout and hinder growth. Delegating tasks, automating processes, and seeking professional advice when needed can free up time to focus on core business activities and strategic development.

Your education doesn't stop when you finish school. As a business owner, there's no such thing as staying still. With the constant advances in trends and technology, you need to devote regular time to your professional development. That doesn't just mean reading books and taking courses. It's also about reaching out to your customers and learning about how their needs are evolving. Get feedback, study your data, and aim to be a lifelong learner.

You will always have the opportunity to learn. Always take the opportunity to learn from people/experts in their field. I am 59 and 5 years off retirement but I am still learning. Take the opportunity to learn about things that both matter to the business and also that may not impact on the business. Having a wide breath of knowledge will only help the business.

I am absolutely a fan of this recommendation. There is so much to learn and the world of business is changing so fast. Take digital marketing, for instance. A few changes in the last couple of years have sent many marketing people for a tailspin. If the marketing experts themselves are scrambling, how are you gonna stay on top of things while also running the business? I believe having coaches, advisors, and mentors is very important. I coach business owners every day and I still have coaches and mentors of my own especially in my blind spots as well as the things I know I am just not naturally good at! Since these can be expensive, start with friends or people in your LinkedIn network. You'd be surprised how many people love to help!

Das kontinuierliche Lernen und Wachsen ist der Schlüssel zur nachhaltigen Selbstständigkeit. In einer dynamischen Geschäftswelt ist es unerlässlich, sich ständig weiterzubilden und an neuen Fähigkeiten zu arbeiten. Das Annehmen einer wachstumsorientierten Denkweise ermöglicht es, Herausforderungen und Feedback als wertvolle Lernchancen zu sehen. Die Investition in Mentoren und Weiterbildung zahlt sich langfristig aus. Nur so kann man den sich wandelnden Anforderungen des Marktes gerecht werden und erfolgreich bleiben.

Don't stress over imperfection. Get the website up and running, and tweak as you go. Start networking, but don't stress over missing a meeting. Go to the next one. Focus on "Pretty Good", not on "Perfect" (you'll drive yourself crazy). Set appointments with yourself to work on projects, so you don't get distracted. Most important of all... take time for yourself. It's tempting to start out working 24/7. Don't. you'll burn out. If you're not healthy, rested, and relaxed, you will have a hard time being successful and will compound your stress. Have an ice cream. Relax. Hit it again tomorrow.

It is always important to keep money by for Taxes. So, you need to know that as Self-employed practitioner, you should file your tax return by 31st January every year, following your year end and make payments of any tax liability, which will possibly include on account payments for the following tax year. For almost 30 years now, HM revenue having insisted that we all pay an equivalent amount of tax on account for the following tax year, in two instalments. So when you start out you may have to pay 1 1/2 times your tax and national insurance liability, in January And a further 50% in July. It is imperative that you save at least 30% of your fees towards taxation. There are also late penalties, surcharges and late interest to consider.

There’s a big difference between between self-employed and owning a business or even establishing a business to give the owner a job and something to do. They take different mindsets. Start with the end in mind; it’s easy to get into something but what is your exit going to be? Not everybody builds something, sells it to a large corporate and spends the rest of their days living a lifestyle of comfort and choices. Death and insolvency are both unpalatable but very real business interruptions that can occur before reaching that objective.

Digital marketing agencies are really effective at liberating you from your money. Two things to remember - firstly, most aren’t ‘marketing agencies’ at all. They are advertising agencies. Secondly, choose with care and don’t spend big until you can afford it…once you’ve committed you will be pouring money into this for quite some time before it starts to work. Only listen to people who have already been on your journey. The fanciest and most popular people on this platform are often selling a dream they have never lived. Keep your overheads small (make do without what you haven’t got) and your commitments short. RTFC - read the contract. Make a process, write it down, systemise it and then when you can automate. Employees come after.