Want to Be Self-Employed? Here’s How to Get Started

The Pantagraph, Bloomington, Ill.

WWR Article Summary (tl;dr) Before taking the leap, there are a few things you should get in order before you transition to building your own business.

The Pantagraph, Bloomington, Ill.

Around 27 million people will begin making their living as full-time self-employed workers over the next two years, according to a study conducted by Freshbooks. Most are motivated by a desire to have more control over their professional destinies and to find new directions in their careers.

If you’re considering becoming one of the millions who join the ranks of the self-employed, it’s important to know what it takes to achieve success as an entrepreneur.

Fortunately, Freshbooks also interviewed workers to get their advice on what it takes to make the transition and successfully build your own business. They offered insight into key steps you may wish to take before becoming self-employed, including the following items to add to your to-do list.

1. Getting your financial life in order
When preparing to becoming self-employed, 58% of workers are either saving money or paying off debt. Doing both are essential. It takes time for a business to become profitable, and you may have little income coming in when you first get started. This can make it hard to make ends meet, especially if you’re in debt.

Getting rid of high interest consumer debt is key as you don’t want to be stuck paying a fortune in credit card interest because you can only make minimum payments. And you definitely don’t want to risk being late paying a bill if your income from self-employment falls short.

You also should make certain to have several months of living expenses saved up so you can still afford the essentials, such as housing, food, and transportation. While you likely can cut your costs when working for yourself — think eliminating a commute and fancy work wardrobe — having a financial cushion means you won’t have to worry as much if your business doesn’t produce for you during lean months.

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