Minimum wage for self-employed?

[silverfish 10]

I know there isn't such a thing, but what extras do people consider it costs to be self-employed? I'm thinking you have to take into account holidays, sick pay, pension - all things that employees often have provided by their employer but a self-employed person has to fork out for themselves.

[Hels 10]

As a self-employed person you would have to consider all the extra's such as Tax, national insurance etc and take this into account when you are submitting a proposal/quote for work.

 

Although many self-employed people do not have the option of quoting for work as they may be sales rep's etc.

 

It is something to be taken into account when embarking on self-employment. One should weigh up the pro's and con's. Being self-employed you may be able to choose the times and hours you work and you may be able to work harder in order to achieve more money - but there's quite a lot involved as you will have to keep your own books etc.

[JoeP 11]

I have to say that the main issue with self-employment is almost always cash flow.

 

It clobbered me 10 years ago, and has made me very conservative about business now.

 

You need to go in to the whole thing with the understanding or expectation that you may not get paid for 3 months. So, you do a week's worth of work, and you might not see the cheque for 12 weeks after that.

 

First port of call is therefore to build 3 months or so of expenditure in to a deposit account - e.g. 3 months of mortgage payments, electricity bills, council tax, etc. All the money you and your family will need to live on for 3 months.

 

Many small businesses fail whilst making a profit and with thousands of pounds worth of work in hand - but they run out of cash to pay the bills.

 

There is a school of thought that if you stay working for yourself, you're just working for a bad boss.... The idea is to get in to a business where you can build income without it being totally dependent upon you working.

 

Joe

[Andy 10]

Originally posted by JoeP

I have to say that the main issue with self-employment is almost always cash flow.

 

It clobbered me 10 years ago, and has made me very conservative about business now.

 

You need to go in to the whole thing with the understanding or expectation that you may not get paid for 3 months. So, you do a week's worth of work, and you might not see the cheque for 12 weeks after that.

 

First port of call is therefore to build 3 months or so of expenditure in to a deposit account - e.g. 3 months of mortgage payments, electricity bills, council tax, etc. All the money you and your family will need to live on for 3 months.

 

Very, very good advice from Joe. In my job in the bank, I've seen situations time and time again where the business is in difficulty, not because there's no work, but because they aren't being paid for work they've done. Sometimes people are not chasing their outstanding invoices. Big companies are the worse for late paying.

 

Having a "reserve" as Joe suggests is a really good idea. Also, it helps to sit down and go through your expendeture realistically to make sure you've included everything in your plans. We all spend more than we think we do.

[silver_lady 10]

If you are thinking of starting up your own business, try contacting Sheffield Enterprise Agency (SENTA) at the bottom of the Moor, The old Chamber of commerce building. They can advise you about business start ups, creating a business plan, and funding advice, this may depend on where you live in Sheffield, but definately worth a phone call. Good Luck!

[eddyrainbow 10]

And how does it work with being employed and self-employed at the same time. Is something like this possible?

[speenie 10]

Yeah, you would still pay tax & NI as an employee, but also keep records as a self-emp person, which would be submitted at end of financial year. Then if you've paid too much tax etc they'll let you know.

 

In answer to the original post, become s/employed if you 100% passionate about what you do, and why you do it, and be prepared to work harder than ever. Lots of folks believe the old "well you can choose when to take holiday's/day's off" outlook. So wrong!! It's down to YOU- to find work, YOU to do the work, YOU to invoice, YOU to chase outstanding money, YOU to keep cash-flowing, YOU to deal with complaints and ultimately YOU fully responsible. However, if it all goes to plan, then you (like me!) can be very proud of your career achievements - albeit your mates have had more holiday's then you!!!

[bawdyed 10]

Hi Everyone

We are KLEENEZE distributors,we are self employed,we have no overheads like rent or rates,gas or electricity for the business as we work from home.

We also do not have to wait for people to pay us.

You can take time of when you want,If you build your business right.Because your group, if you choose to build one does not stop working when you do.

I know a lot of you frown on this kind of business,network marketing( MLM )it's not pyramid selling. It has produced more millionaires than any other type of business in the world.

Everyone starts from square one and takes it from there, no one starts at the top they work their way there.

KLEENEZE is a founder member of the DSA (DIRECT SELLING ASSOCIATION) that regulates all these businesses.