Starting Your Own Business vs Employment | Sole Traders

 Should you leave full-time employment behind and start your own business? There are pros and cons to both options, and, in this article, we’re taking a look at what they are – and whether you’re ready to dive into self-employment.

As contractor accountants, we can help you in your sole trader, locum or limited company journey. So, let us handle your accounts and maximise your profit, no matter the type of venture you’re running – or if you’re still thinking about setting up your own business.

Should You Stay Employed?

Although there are numerous benefits of working for yourself as a sole trader but there are also numerous reasons to continue to work full-time. Check out these reasons and see whether any of these are in line with your current situation.

You’re Not Sure if Self-Employment is Right for You

A great way to try your hand at self-employment while you're not certain whether it's the right choice appropriate for you is to start an additional job, while you work your job. A sole trader's structure is most likely to be the best choice because it doesn't have any of the administrative or legal obligations as limited-company structures do. Furthermore, you can also shut down the business more easily if you're sole trader.

You may also decide to add later on, which could offer a myriad of benefits. For instance, improved tax efficiency, or an increase in your take-home pay you.

You Worry About Job Security

• Although being a sole trader or a limited business owner can be extremely rewarding in terms of greater wages, it's real that it's not possible to be certain of job security. Contractors and freelancers must look for new jobs constantly, and small-scale business owners have to deal with partners and suppliers for instance.

This means that there's nothing guaranteed when it comes down to having your own boss - However, full-time employment isn't without risk as we've witnessed prior to the outbreak. The job market isn't guaranteed so we feel that establishing your dream career should be your top the top spot.

For many, this is the process of setting the business. There are a variety of methods to reduce this security. If, for instance, you're self-employed, it's possible to deal with multiple clients simultaneously and help to keep your cash flow even the loss of one client.

You Wonder if You Can Stay Motivated

• If you're a freelancer, or contractor, it is essential to be disciplined and focused in all times as you're the only person responsible to your schedule as well as the completion of your tasks. But, the transition to self-employment can be difficult to handle, particularly because there is no supervisor to be accountable to and fill out a timesheet and a set number of hours of work per day, and much more.

If you are your own boss as a sole trader, it's essential to set realistic expectations regarding the hours you are able to work and how much time you are able to take off and also organize the work so that you can finish all of your project's work in a timely manner.

If you find it difficult to motivate yourself you should have an established schedule with the same number of breaks and hours in order to help you get used to an established routine. Motivation is essential for freelancers and contractors because you'll be the one to get your name known by contacting prospective suppliers, networking with colleagues, etc.

Why You Should Become Your Own Boss

We've heard it many times previously, but we'll repeat it the same thing: operating your own business can offer you a lot of benefits Therefore, why not take a closer consider what you can anticipate?

Perhaps these tips will help you decide but if you're not convinced We're here to assist you with any questions you might have regarding becoming sole trader and, therefore, contact us now to talk to Sherwin Currid team member

You Can Learn New Skills

While you should only become self-employed when you feel confident that you have a set of skills and expertise to offer, you don’t have to be the absolute expert at everything when you first start. Running a business allows you to keep working on your skillset and develop new skills you may never have worked on before.

If you value personal and professional development, this might be the best option for you!

You’re Not Keen on a 9 to 5

While there’s nothing wrong with having a set schedule every day, such as the typical office 9 to 5, it’s also important to remember that these types of hours are not for everyone. For example, if you’re someone who thrives early in the morning or can only work well by taking several breaks during the day, then a more ‘unconventional’ option is right for you.

Of course, many self-employed individuals prefer to keep the same schedule as they did when they were employed, as this can help them to stay disciplined – however, once you’re a freelancer or contractor, you can make your own hours and work the way that suits you best.

This can lead to increased productivity as well!

·      What About Both?

In the past, if you're not sure whether to quit your job and begin a business then why not consider both for at least an indefinite period of time?

There are advantages of having a full-time job as you run your own business as a sole trader and it's your responsibility to decide if it's worthwhile. As an example, you might be able to find you don't have enough time to work on your new venture , especially when you're also working for your employer. This could mean you be working on weekend and in the evening instead of spending time with your family and acquaintances.

Some people may not be content with the arrangement, but it could be temporary. Many self-employed entrepreneurs start this way but then decide to quit their job and concentrate entirely on their business.

In the end, you'll will have more time to your business when you quit your full-time job. You'll be able to conduct research on the market and your competitors, develop an effective marketing strategy in place, get started making contact with potential customers, start networking, and much more.

Another advantage of two jobs is that it means you won't need to be worried about becoming successful right off of the start. It may take time to see a business grow and, if you already have the security of working or a part-time job, working on a side project will not be as difficult as it would be should it be your only revenue source.

If you're planning to create your own creative venture, doing a second job could help you find the ability to pursue this avenue without having to quit your job. This is especially true in the event that you're not certain if your venture will be successful in the near future.

We're accountants for small businesses and also deal with startups and sole traders, we're aware that the decision to take a leap of faith isn't easy. should you decide to do both simultaneously it is only necessary to decide between either once you're ready.

Where Does Sherwin Curried Accountancy Come In

As early as you’d like! We can help with everything from helping you to decide which business structure is right for you  to setting up a limited company and preparing all your tax returns. We also provide ongoing expert advice designed to maximise your profits.

Sherwin Currid Accountancy team also know everything there is to know about your industry. We work with many different sectors.

What’s more, as sole trader accountants and limited company accountants, we’re on hand to answer all your pressing queries. world.

Talk to us via our website chat function or call us on 0800 135 7157 to learn more.