Episode 155: Learn helpful tips for becoming self-employed while reducing risk. We’re talking about the seven financial keys to success and how to identify what’s holding you back so that you can work around them to achieve your entrepreneurial goals.
On this episode, we’re joined by small business expert and money coach Matt Baker, Senior VP, Strategic Planning at FreshBooks. Matt believes that entrepreneurs can be more financially successful by asking themselves some crucial questions before diving into their entrepreneurial journey.
Reasons for Becoming Self-Employed
The overarching reason for becoming self-employed and starting your own business is to regain control over their lives. Whether it’s setting your own schedule or seeking greater income, fewer than 10% of people surveyed after starting a business have any desire to go back to traditional employment.
Identify Your Barriers
One of the first steps toward becoming self-employed is identifying your barriers. The overarching concern often pertains to money, whether it’s to start the business or to stay alive until they become profitable.
Another issue that comes to light is training needs. The interest might be there, but the need for skills development is a real concern for many would-be entrepreneurs.
There’s also a sense of security regarding employment. Your employer often deals with health benefits, taxes, and other things that you’ll have to think about.
Financial Tips to Shift to Self-Employment
25% of the entrepreneurs who are focusing on the seven key financial tasks outperform those who don’t. These financial tasks include:
Setting a budget with forecasting and comparing results.
Setting the right amount of money aside for tax and low periods.
Proactively reducing debt.
Paying yourself a salary.
Keeping business and personal money separate.
Having the right structure for your business (LLC, incorporation, etc.)