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Tag Archives: small business

Self-management for the self-employed

Those who are self-employed will understand that keeping on top of financial affairs is of the utmost importance. For those who are just starting out, this can seem a very daunting task, but there are ways of keeping the whole process manageable so that it does not completely take over. It is important that tasks like this are completed without the need to take time away from other essential aspects of running the business such as marketing and actually doing the work.

Getting – and staying – organized

It is very important when self-employed to keep proper accounts. Noting all incoming monies and expenditure is essential, otherwise it would be too easy to fall into the trap of having more going out than is coming in. If possible, a qualified accountant should manage this side of the business. While some small businesses may be concerned about the cost of hiring an accountant, most find that effective management of taxation can actually save them money in the long term.

The right accounting software should be used and all invoices and receipts input as soon as possible. This allows for checking of the system in real time and makes tax returns and other administrative functions far easier. It will also help to show when bills are due to be paid so that nobody ever needs to knock on the door to demand what is owed to them. One of the easiest ways to stay on top of this task is to dedicate a set amount of time each week to entering data. This should take no more than a couple of hours, but if it is left for any length of time it could begin to amount to several days’ worth of work.

Getting a helping hand

If the thought of dealing with taxation is too much to bear but being employed by another person is also too much, then there is middle ground that will suit. The use of an umbrella company is the ideal solution for those who want to work for themselves but at the same time need the security of knowing that they do not need to complete taxation paperwork themselves.

The freelancer or contractor registers with the umbrella company and becomes an “employee” of the company, which then deals with income tax and national insurance. The company will also deal with invoicing and collecting payments on the freelancer’s behalf. This means that the freelancer is able to spend that time dealing with building their business without the burden of too many administrative tasks. For that self-employed PAYE is still an option.

The important point is that freelancers are not put off going it alone by the thought of endless amounts of paperwork. Many people dream of becoming self-employed and, therefore, independent but, without the right approach to the administrative side of the business, the dream can unravel very quickly, so finding a solution that suits the needs of the business is essential.

How to kick-start your part-time business without going broke?

30 Jan

Have you ever thought of starting your own business? If so, were you successful in doing so? If not, what is holding you back? Have you ever thought about it? Though I might not be an expert on the subject, I have some experience in starting my own part-time gig, which I would like to share here with you. In this blog post, I will provide you with some advice on how to kick-start your part-time business that you have always thought about, but you didn’t know where to start.

Calculate before you jump-in: Let’s say, you are making $4000/month from your current full time job, and you are saving around $400/month or so. Now, let’s assume that you want to open up a new part-time business of photography, and you are unsure about it being successful or not. In this situation, instead of jumping into the business directly, and getting loans from other people to start your business, you can just calculate the worst case scenario. Assuming that your equipment, advertisements and operational costs being $4000, you can save this much money in 10 months. Let’s say, if you can make this much amount of money in 10 months through your photography contracts, it might not be a bad business after all. Other thing that you want to calculate before entering into the business is….how much will be your operating costs vs. how much money you are expecting to make. Though it might not give you a perfect answer, it will give you a definitive starting point of your finances.

Test your business model: Once you are convinced that you really want to start your part-time business, and once you have done all of the calculations, now it’s the time to test your business model. In order to test your business idea, you might want to meet with your prospective customers to test the assumptions of your business. For example: If you want to open up a new photography business, it would be a good idea to take 1-2 contracts for free. This will not only build up your portfolio, and provide you with some good references, but it will also test your business model. If customer feedback suggests any changes to your current strategy, then go back and modify the appropriate building blocks of your business. And repeat this process with other prospective customers, until you have some amount of confidence in implementing the same business model for money.

Jump in: Once you have tested your business model, now it’s the time to jump in and make some real money. In order to do this, you should capitalize your older customer base to expand your business. Word of mouth definitely helps you to get some business (at least in my experience). Obviously, having some external help from some advertising contractors wouldn’t hurt either. Once your business is up and running, you should continuously assess your business’ profit potential every month. You might have couple of months with some losses, but make sure that you can afford these losses through your current full-time job’s savings. If you are continuously losing money in your business, which can’t be recuperated through your primary job, then it might be the time to get out. On the contrary, if you are making enough profit from your business for more than 6 months, and if you can sustain yourself from that profit, then maybe it’s the time to convert your part time gig into a full blown business.

I hope, these tricks will help you kick-start your own part-time business within few months. Do you guys have any other ideas regarding this subject? If so, please share your ideas through comments below. My readers would be delighted to hear your take on this.

Thanks – Bhavin Gandhi

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Posted by Bhavin Gandhi on January 30, 2014 in 21st Century, Leadership, Management

Tags: business management, business model, Entrepreneurs, Leadership, part time business, return on investment, Self leadership, small business, Start your own business, start-ups

Make your Mom-and-Pop business globally accessible in this mobile era

29 Jul

Today’s buyers are finding new ways to shop and make purchases. With help of the Internet and various mobile devices, today’s consumers can shop wherever they want.They are surfing with small screens, using mobile apps, and taking charge of the e-commerce experience more than ever before. Thus, in this blog post I am going to provide you with few simple tips on how to make your business more accessible in this mobile era.

List your business online: In order to make your business searchable in this Google era, you need to list your business where mobile shoppers hang out. Even if you have a small website for your business, make sure you’re on the local directory of Google Places, Bing Business, and Yahoo Local Business. You should also make sure that your business is listed on the review site such as Yelp. List your products on venues like eBay Local Shopping. People love to look up reviews on their mobile devices, so make sure you’re there.

Make your site mobile accessible: In order to attract today’s mobile generation, you need to make sure that your website or online store is compatible with the mobile devices. If you are not one of those big companies, who can afford to have their own IT staff to make/update their mobile site, then you can get your own mobile site by signing up with a third party hosting services, such as Mobify. While selecting this third party service providers, make sure to check for its performance and ease of use. It should be easy for your shoppers to tap the the “Buy Now” button, and buy your product quickly.

Make your business social: If you are one of those Mom-and-Pop store, who can’t afford to have multiple employees working on your social media strategy, then its ok. You can still create a Facebook fan page for your business, and have a Twitter and a LinkedIn page for your business. Being a small business, you might not have dedicated time to publicize these social media profiles everywhere. Thus, you should take the advantage of your existing clientele by providing them incentives to like your Facebook page or follow your profile on Twitter. This approach will definitely make your business more searchable in the social media search on these new mobile devices.

Do you have any other ideas through which you can make your local business more searchable in this mobile era? I would love to hear your ideas (if any).

Thanks – Bhavin Gandhi