Self-Employment - Myths and Realities
By Greg Lewis, AACC member
Self-employment is gaining more acceptance as a viable alternative to the more traditional choices available in seeking gainful employment. For some, employment in their current field of work may no longer be attractive, nor is facing the often daunting challenge of changing careers, particularly for those in their middle years. Against this background the prospect of being self-employed has a number of attractions, and particularly the idea of developing and managing an enterprise that reflects your values, ideas and dreams.
However, while the potential to achieve a ‘dream’ is a very strong motivator in becoming self-employed, there is a need to adopt a realistic approach by those considering self–employment. This could include buying a business, investing in a franchise or starting a business from your own resources. Responding to the following questions may be useful in deciding that self-employment is a practical means of earning a living.
- Thoroughly assess your attributes and the skills you prefer to use. What are you really good at doing?
- Are these skills in strong demand? Can you make a reasonable living by using them?
- Do you have previous commercial experience? You may be competing with other, more experienced individuals and companies.
- What types of services can you provide? Who would buy these services? How would you ‘market’ your services?
- What sort of operation would you need to provide your services, for example, a single share company? Or would you consider some form of affiliation with an established business?
- What resources do you need?
- What cost is involved in providing your services? This includes marketing, administration, insurances, buying or renting equipment, materials, and some start up costs such as company registration, etc?
- What do you charge for your services? You will need to cover a whole range of expenses, running costs and, of course, taxes, as well as achieving an income.
- What new skills do you need to operate your own business?
The above questions are examples of some of the issues you will need to consider. There is a considerable volume of material and support available to help with your research. As a starting point you should contact your local Business Enterprise Centre (www.beca.org.au), which provides a range of advice and support services, many of which are free or at a low cost. There may also be funds available from government agencies (both state and federal) in the form of grants to establish new enterprises. If you are still strongly motivated to become self-employed, you will need to consult with:
- a commercial accountant who can advise on company structure and arrange company registration, along with tax liability and financial management
- a solicitor if your business involves contractual, copyright or related legal issues
- a marketing consultant who specialises in your field of work (alternatively you may seek specific training in this area)
- if possible, talk to people you know (or could be referred to) who have been successfully self-employed.
NEIS (New Enterprise Incentive Scheme) could be an option for you if you are a registered job seeker and would like to start your own business. Visit www.workplace.gov.au/neis or ph. 13 62 68 for more information.