Good Reasons behind Being Self Employed

New business

Not any kind of manager or boss is acceptable, but some can tolerate such people while others would never give any more minutes of their lives in the place they are working in. Everything comes with its pros and cons, but people’s ability to keep their attention on the pros is what drives them straight to being successful. Being self employed also does have its good and bad, but what might be worse than a manager who can never pass a day without saying how lazy you are at doing your job? There is actually nothing worse.

What does self employed mean?

Stories always need some kind of introductions for the people to understand what are they about to start reading, and the same thing goes when one decide to put himself/herself in the business world, they should know what exactly being self employed would mean. The person who is self employed will not be at the mercy of someone who is always crashing his/her dreams, but he/she would be a person who is working for himself/herself instead of working for an employer. Being self employed will mean that the income which you receive comes from a business or trade that you operate directly and not getting a salary from an employer.

The tricky part is knowing that a self employed person differs from being a business owner. A business owner might be someone who only owns the business without being enrolled in the daily work operation of the company, while on the other side, the self employed is a person who is the sole trader or the main operator behind the business which he/she owns.

How to be self employed?

Sometimes we fall in the dilemma of getting paid less than what we think we deserve. Or else feel irritated when all the work is piled up on our desks, and we are supposed to be finishing every single task while our bosses are actually doing nothing, but yet they are still getting more money than us. These problems are the bullets which hit us and made us realize that we need to be self employed right now. But how could we start achieving such a dream?

In order to learn how to take the first steps in the self employment world, we need to put several things in mind, these things should always include:

  • Thinking about a business idea that you know you can do

Being self employed needs someone who is devoted to start doing something he/she always had passion for. The idea which you are going to track should be something you know you are able to deliver to the people in it’s perfect form, something you love to do and will never fall bored while doing it. Remember it’s your own business and your own idea.

When someone is starting a new business, he/she should start evaluating their own selves. They should start putting down all the possibilities they can handle, should know how much money do they have in order to serve them in the choice they made. One important thing is knowing whether you want to sell a product or a service, because it usually differs in such cases.

  • Knowing more about your chosen business

After settling down on the kind of product which you are going to sell, or the service that you are going to provide, search that field. Try analyzing the business; know who will be your competitors, or whether the business will serve in the area which you are going to settle in, will you have the intended type of customers who you already had in mind? And if not who might be your customers after all?

  • Thinking about having a partner

Some people prefer having a business which is theirs from A to Z; they own every little detail inside. Having a partner will release some of the load that is falling on the budget; it will come as some kind of budget-lifter, but if you are totally capable of handling the business alone then you can go on without a partner at all.

  • Writing down a good business plan

Business plans are important to outline the money that you will put and receive out of this business, and in the case of borrowing money from family, friends or relatives then it will keep you on track of how much money you took from each single person.

The business plan carries along some other ingredients that should be added, like knowing about the places where you can get the items or products which you are going to use with lower prices. As well as renting a place for the business if your first plan was not to start it right from the comfort of your own home. And choosing the place is not one easy task, but it needs searching for a good location, decorating it and making a grand opening to get the people attracted to the place, and all these plans need financing.

  • Preparing yourself for any unexpected results

Starting a new thing like opening a new business might carry along some unexpected losses, and a person should be open to the idea of trial and error. Although following upon business plans make the process easier, but being flexible towards that plan is sometimes needed as well. Learn from the mistakes you have done, know what have worked its way through the business and what have not, advertise and market yourself more so people can know that you are right there on the map.

Self employment ideas:

Some people have worked their ways into depending mainly on their talents and opened their own business which they are totally responsible for every single thing that goes inside or outside of it. Mostly, all these businesses started from being at home at the beginning, and then they started thinking about moving to a shop when they find themselves succeeding in the business. Some of the ideas had gone outstretched before we even notice, from these ideas are:

  • Home bakeries: having the talent to make some beautiful cakes and decorating them in a breathtaking way, have paved the way for many people to start following their passions and start making a business from home which mainly depends on social media and a delivering process that they can come to an agreement with.
  • Event planners: some people know where they could print good paper materials, and get items to decorate different kinds of events, so they decide on becoming event planners. This kind of business is also regulated through the internet world; people just make sure that they are updating all the pictures from the events they have already worked on so people can know about the quality of their work.
  • Cleaning services: getting the things out of dust and making everything look perfect is just the way people think they are satisfied. People can offer their cleaning services to people while they are at their homes, they will just have to know which products are the best to be used and what are the types of things they are going to clean. You can even know more about starting your own cleaning business.
  • Jewelry maker: whatever happened in this world, women will never give up on their shopping instincts and their love for buying jewelry. Statement jewelries have been always asked for and wanted and some people have their magic hands that can work through making such pieces. All one have to do is to know from where they could buy the beads with prices that they will benefit from.
  • Fine arts: the taste for art is rare, but it is easy to find someone who is selling unique items or someone who happens to be an artist and can draw whatever you wish, these people might be those who always had passions for collecting rare pieces whatever these pieces might be.

Businesses might vary according to the interests of the person, someone might even start being self employed by offering services that come as a kind of part time of full time freelancing, from these examples are writers, graphic designers, translators and online tutors.

What is self employment tax?

One of things which is included in the package of coming up with your own business and becoming self employed, is the self employment taxes. Self employment tax is a tax consisting of Social Security and Medicare taxes primarily for people who work mainly for themselves. Social security and Medicare taxes of most wages earners are figured by their employers.

The self employment tax rate for self employment income earned in calendar year 2011 was 13.3% (10.4% for Social Security and 2.9% for Medicare). Other than using the calendar year, one can depend on using the tax rate and maximum earnings limit in the effect at the beginning of the tax years, even if the tax rate or maximum earnings is changing during the tax years.

The person who should be always paying for the Self employment tax (SE Tax) is the one who is earning $400 or more, or the person who has church employee income of $108.28 or more.

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