What is A Solopreneur

When you first go self-employed, it’s an incredible feeling. Scary – but exciting. Making that leap from employed to self-employed is a big step. But when you manage to handle things well, you’re always glad that you did it.

Whether you’re someone who has been freelancing or working for themselves for years, or you’re still a newbie, you may think of taking another big leap.

But what does the move involve? And how do you know that you’re ready for it? Do you even need to make the move? Right now, there could be quite a few questions going round and round in your mind. And that’s okay. But you don’t have to worry so much about them, instead, you just need to work out what the process involves and pick up some tips to help in the process!

2. Know You’re Ready For It

So first of all, you’re going to want to make sure that you’re absolutely ready to do it. If you’re making under the higher income tax threshold and you’re happy operating on a self-employed basis, then you may be okay as you are right now. But, if things are rapidly starting to grow, and you notice that you’re earning more and more, it may be more efficient for you to make the leap sooner rather than later. The second point can help you to clear this up a little more.

2. Speak To Your Accountant

Other than wanting to look more professional and have a registered business name, one of the reasons that people go from a self-employed sole trader status to a company is because it’s more tax efficient. As a sole trader earning a high income, you may be paying a significant tax. Your accountant can advise you on whether this is the right move for you just yet.

4. Register The Company

If you decide that you’re ready, or when you do, the next step is registering the company. For this, you have a range of options. You could use a limited company formation agent, set it up yourself, or even work with your accountant. But, if you’re not sure you know what you’re doing, working with a professional may be the safest option.

4. Stay Organized

Another thing to make a note of, is that you’re going to want to make sure that you’re being organized. Being set up as a company, rather than a sole-trader, has a few more limitations. You have to be very stringent on what you’re recording, how you’re taking money out, and how you operate. So for that to be easier, you need to be very organized with your paperwork and finances.

5. Make A Plan

From here, you may also decide that you want to make a plan for your business. If you’re already growing or you have a rough idea of how you want to grow (and where you want to be), it can help you sit down and give it some serious thought. Ensure you’re thinking about all areas of the business and creating a business plan that gives you actionable points to work on.

6. Keep Moving

Next, you’re then going to want to make sure that you’re executing on that plan. You have to keep moving when you want to be a big business, or at least be bigger than you were as a sole trader. So this means that you’ll want to start hiring people, investing more money into your marketing, and generally looking to push your growth to get results.

7. Stay True To Yourself

And finally, just make sure that you’re still running things as you always have. Yes, you have to be more organized now. Yes, there are more restrictions financially. But everything else should essentially be the same.