Being self-employed can be an immensely rewarding experience. Whether you are doing it for the money, the experience or the opportunity to share a passion, you want to make sure that you are approaching it in the right way.
There are more ways than ever to be self-employed, with many Brits freelancing, contracting or side-hustling. In fact, while overall self-employment has yet to return to pre-pandemic levels, research from Deloitte into UK working habits found that 42% of Generation Z had a side hustle in 2023, compared with just over a quarter of Millennials.
That’s why we’ve spoken to some self-employed experts to find out their top tips for anyone who is setting out by themselves.
1. Understand your circumstances
Before leaping headlong into a massive life-changing decision, it’s important to consider whether it works for you. Felicity Blades, the founder of creative events company Drink & Draw, says she “didn’t have loads of money to sink into something” when she started her business so her low-cost initial business model made sense.
She ran pop-up events that she could lead herself, rather than overextending her reach with major events that might require her to hire staff she could not afford. She also recommends understanding how committing to a new business or freelancing role could impact your personal finances.
As such, it’s crucial to consider your own circumstances and how much your life might change before deciding if you want to start a new business, find a side hustle or say goodbye to full-time employment.
2. Be flexible
Lynnette Hecker is the owner of online vintage clothing retailer Lovely’s Vintage Emporium, but has also worked as a fashion journalist and dog-walker. She says business owners must not be afraid to “shake things up”.
She says she spent years simply trying to sell vintage clothing exclusively through her website, but has since diversified by visiting vintage fairs and using Instagram Live to sell directly to her growing social media followers.
Lynnette explains: “I think it’s a bit like trying to make a bad relationship work. Once you’ve realised it’s not going to work, there’s no point trying to alter that person. You need a different person. Yeah, I think the same in business. You need a different model. You can’t keep adjusting that same model – you’ve just got to switch it up and start again.”
3. Learn how to cope with uncertainty
Starting your own business or working as a freelancer can mean abandoning the comfortable certainty of a salaried income and regular work schedule. Busy periods might send your head spinning, before you end up with weeks or months with little or even no work.
It’s best to be prepared for this uncertainty and think about how to make it work for you.
Freelance lighting cameraman Mario Genovese says: “You always have to think of the months ahead and what this next season is going to bring. But in terms of visibility, you don’t get much visibility. I mean, you’re lucky if people call you to book you in six months’ time or you get a contract locked in for the next year.”
He warns that panicking about getting work is something that people are not trained for and it can impact mental health. His solution is to embrace the quiet times when they come, as busy periods can mean working flat-out across seven-day weeks.
In addition to this advice about uncertainty, Mario adds that “saying no to a job is almost as important as saying yes.” He reflects that generating income is important, but spending time with family and taking breaks are also essential.
4. Cultivate relationships
Mario says that, as a sole trader, “it’s all about the relationship [you have with a client].” He explains that you need to make them understand that you are not easily replaceable and that building trust is a fantastic way to do this.
He concedes that this requires a bit of give and take, noting that he might sometimes agree to work longer hours than initially agreed in order to develop a solid working relationship with a director or producer.
It’s not just clients you need to develop relationships with either.
Lynnette notes that one of the difficulties with starting out on your own can simply be missing the “cameraderie” of being part of a team. To combat this, she recommends joining a business networking group or simply reaching out to fellow professionals in your industry.
She explains: “I do chat with other vintage dealers online. They tend to vary. You get the ones who are so competitive they don’t want to have anything to do with you. They don’t give anything away and they’re not interested. You soon learn who they are, so you just don’t bother.
“Then you have the other ones who become sort of your online friends, and you swap ideas and chat, and then you often buy and sell off each other.”
5. Master your taxes … or find someone to master them for you
Dealing with tax matters can be a major unknown for somebody switching to self employed work for the first time, with Felicity calling dealing with HMRC “daunting” due to the confusing nature of the tax system.
However, a proactive approach can see self-employed workers conquer their tax demons and claim significant rebates by learning the ins and outs of the self assessment and claiming tax relief on their business expenses.
Lynnette says: “The important thing is learning what expenses you can claim, because they are different for different businesses.”
You don’t have to do it all yourself, though. Hecker adds that forking out for an accountant can be “worth every penny” because of their ability to keep you informed of which expenses you can claim on. Getting an accountant to do your tax return for you will generally cost around £150 to £300.
It’s important to note that an accountant cannot do everything by themself. Lynnette recommends doing as much as you can yourself in order to keep costs down, noting that she maintains a spreadsheet on which she logs “every single thing I buy and every single thing I sell”.
Image source: Getty Images
About the Author
Dive even deeper
Tipping in the UK: How Small Businesses – and Workers – can Benefit From the New Rules
by Amy Knight
4 Reasons Why November’s Interest Rate Cut is Good News for Small Business Growth
by George Harrison