It appears that more people in the UK are recognising the benefits that working for themselves can bring into their lives. Turner Little look at a new report show that four million Britons want to become self-employed.
Becoming self-employed
You can become your own boss by taking several steps. It is key to begin by choosing a business model – sole trader or limited company? As a sole trader, you will have few administrative responsibilities, but you will be personally liable for your firm’s bills and debts. It can be wise, therefore, to form a limited company, which Turner Little can help you with, as this gives you some financial protection.
It is also very important that you consider how you will find work, as your own boss, before becoming self-employed. This has never been easier, as you can use online resources such as LinkedIn to advertise your services, make your CV and portfolio available to potential clients and build up a list of contacts, which you can tap for new business. It is also a good idea to ensure you have sound financial infrastructure in place, before going self-employed, so you can manage cash flow effectively.
Working for themselves
This option is becoming appealing to more and more Britons, as the years pass. There has been a 22% spike in the UK’s self-employment rate since 2009, as the rise of digital technologies has made it easier for people to work by themselves. As of December 2016, 4.52m people are self-employed and new research has indicated that a similar number of Britons would like to follow in their footsteps.
This study, according to Start-Ups, found that four million Britons – 15% of the UK’s working population, would like to become self-employed at some point. Of those surveyed, 12% would like to become their own boss in the next six months and a quarter admitted that it could take five years for them to establish themselves as self-employed workers. Meanwhile 22% said that it had always been their goal to work for themselves.
Facing challenges
The aspiring entrepreneurs surveyed were also asked to give their primary reason for wanting to be self-employed. The most popular answer was the opportunity to increase earnings (37%). The second most popular reason, given by 35%, was the ability to improve work/life balance. Those who are already self-employed were asked to state what they most enjoyed about working for themselves. The most popular answers were being their own boss (93%) and controlling their own destinies (82%).
The research also shed light on the barriers which the UK’s aspiring business owners feel prevent them from going self-employed. Their answers included the inconsistent income, difficulty settling bills and irregular cash flow, at 32%, 25% and 24% respectively. In the poll, a similar question to those respondents who are already self-employed. Here too, inconsistent income was the most prevalent response, at 55%. This was followed by irregular work volumes (52%) and late client payments (44%).
Control cash flow
This research proves that self-employment is more popular than ever in the UK. It also shed light on the cash flow challenges that you can face as your own boss, so returning to the point above, it really is crucial to set up robust financial infrastructure for your new firm. This is another area where Turner Little can help you out. You can utilise our banking services, to open a UK business bank account, allowing you to manage your business’ money effectively and make your venture a success!
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.
