11 Steps on How to Work for Yourself

By: Douglas Wade, Attorney

The decision to start your own business should not be taken lightly. However, with the help of the right information, individuals can transform their careers in the manner that they see fit and enjoy both the hard work and freedom that comes with it. In this article, our Los Angeles business attorney Douglas Wade discusses how to become self employed legally.

When entrepreneurs seek work for themselves, they might be filled with new ideas but unsure exactly where to start. Here, we present some of the essential steps in the process of how to work for yourself, so interested individuals can begin their journey filled with the correct knowledge.

1. What is Self Employed?

The meaning of self employed simply means a person works for himself or herself. The self employed person does not have a boss, manger, or supervisor. Being self employed also include being a freelancer. One of the most challenging aspects of becoming self-employed is also fairly simple: an individual must commit to a completely new type of career. Decisions abound for entrepreneurs running their own businesses, but this is the first decision they will need to make and stick to.

Choosing to commit to self-employment may be simple in theory, but it can prove challenging. When workers are used to being guided and instructed by their managers, supervisors, and bosses, not having anyone in charge, but yourself can be confusing and difficult to get used to. The point here is that when people choose to become self-employed, they immediately assume responsibility for their careers. There is no one to answer to but themselves. This can be freeing and empowering but also possibly intimidating.

However, the key to this first step is the word “commitment.” Decide to leave your current position, and decide to pursue self-employment, and do so completely and without self-doubt. It takes belief in oneself and courage to leap into a new career, and this is not only a new career but a new style of working, one full of responsibility and inspiration. You are the only one who can make this decision, and it is entirely up to you. But if you are reading this, then you are halfway there already.

2. Determine Your Self Employed Business?

Every entrepreneur is guided by a vision of what they are passionate about. The second key to becoming self-employed is a carve out a sense of focus for your new career. There must have been a strong desire to pursue a new, independent career and leave the comfort of your existing office and profession. What was it? While we are encouraged to have varied interests and be free thinkers, your new venture cannot be about “everything.” You’ll need to find your niche, your category, and your passion.

One way to find this specific focus is to ask yourself some interesting questions and do some brainstorming. You might ask yourself:

Will you be self employed from home?
How can you utilize the knowledge and experience you have accumulated in a new career?
What services do you want to offer, or new products have you found that can be offered?
How can you zero in on a very specific business category?
Where do you see demand for your products or services, and how can you enhance that demand?
Can you see yourself working in this sector or industry for a length of time and remaining happy and challenged?
Do you see lucrative business opportunities in this area that connect to the things you are passionate about?

When you have some answers and ideas, begin to focus on your idea even more. The goal here is not, to begin with, five “good” ideas but one very distinct “great” idea. If you can find a specific aspect of the market to work with, you will be that much more ready for a successful start. Instead of branching out too much, find your specific field and research the best way to join it. This way, you can begin to figure out your target market as well as begin thinking about marketing and advertising.

3. Find the Correct Market

Now that you have identified your passion and begun to think about how it translates to a new and inspiring career, it is time to think about your prospective customers. Self-employed individuals spend a lot of time considering the audience that will ideally use their products and/or services. Many believe that their market will figure itself out because their services or products have broad appeal. Sometimes, entrepreneurs decide that if their business is creating something new and exciting, they do not have to worry about the nature of their target market.

However, this is a mistake. Focused small businesses that offer a singular, coveted service to a specific market usually perform better. Any insight entrepreneurs can gather about their target market is valuable for a company, whether large or small, but for those who are self-employed, understanding their target market can be the difference between early success and early failure.

Successful business people who have built their own careers know that success does not come from waiting around or offering a service or product that is overproduced already or has an overly general purpose. Instead, your goal should be to provide a distinct solution to a specific category of people. Now: ask yourself, who are these people? One should be aware of not only their general demographic but other characteristics. If you write down that your target market is ”18-year-old young men,” that is something but go much deeper. What are their priorities, and what or who do they care about? Are these college students or workers? Are they educated? What are their concerns, and how does your service or product appeal to them in a way that nothing else does?

The more specific you can be with your projections, the more aptly you can serve your prospective consumer base.

4. Create a List of Objectives to Check Off

One aspect of being self-employed that is often underrepresented is the amount of time that entrepreneurs must commit to pursuing their goals. There is simply less responsibility when you are a part of a business entity that does not belong to you. When you run your own business, everything begins and ends with you. Even if you reach the point of having a set of employees you rely on, the authority, accolades, and blame are all destined for you.

Therefore, since you are about to commit significant effort to this venture, you will need a way to measure your success. You will need a way to mark your progress and know if the projected goals are being met or if you need to recalibrate some of the decisions you have made. When many entrepreneurs learn that their first idea or campaign is not working, they use the knowledge they have gained to pivot to a new idea. Some find success this way.

The basic steps to success when self-employed are:

Identify a product or service that is in demand
Be able to explain why the product or service is indispensable
Market this idea to customers
Register profits that offset your expenses

While this is a rudimentary list, one can see that meeting all of these requirements will take a lot of hard work and planning. So, set a list of specific goals and keep them handy. When you meet a goal, celebrate. When you cannot, work hard to figure out if the goal was unrealistic or if you can make the necessary changes to meet the goal in the future.

Here are a few questions that might help you draw up your list of objectives.

How does your product compete with others, and where do you see it fitting into the market?
How will your business productivity and enhance sales?
Do you have a goal for first-year sales?
What is your ideal scenario for the first year of the business: think in terms of sales, marketing, hiring, and other areas.

When you commit to becoming self-employed, questions like this will find you. It’s best to get out in front of them and take these challenges head-on. Besides, there is no feeling like meeting a goal and crossing it off your list!

5. Start Self Employed Business

When you’re ready to start your self employed business, our California business lawyers have put together articles that will help start your California business:

6. Organize the Office—and Everything Else

Setting up their new small business is almost as important as running the business for eager entrepreneurs. A variety of questions will require prompt decisions. For example, have you figured out the best way to structure your business? For example, you could keep it fairly simple with a sole proprietorship or explore limited liability options with an LLC. Each option available to you is contingent on personal preference and the size, nature, and objectives of your business venture.

You will also need to make sure your business meets all state requirements and register it officially before opening up shop. Different categories of business require unique permits and licenses, as well as documentation. Checking in with the secretary of state is a good idea, studying similar businesses that have already launched, speaking with colleagues, and doing some online research.

While we do not want anyone to become overwhelmed, it is good to be aware that many administrative tasks come with setting up a company. Even if an entrepreneur is starting out small, with a sole proprietorship run out of their home office and no employees, there are still many decisions to make. If you do have a team, spread these tasks out. If it is only you so far in this self-employment journey, use lists and spreadsheets, take notes and have faith in yourself. You have made it this far!

7. Save Time with Effective Systems

The daily tasks that come with being self-employed are numerous and never-ending. This can be exciting yet also demanding. A normal morning at work might produce questions for you about pricing your services and/or products, billing customers, recording profits and losses for the quarter, and more. The key to all of these different tasks is that they involve being acutely aware of exactly how your new company is performing.

These days, there are systems that can help obtain and record these types of statistics. Being constantly aware of the correct data can elevate your business performance. The question for entrepreneurs is this: what system or systems will help your business succeed and achieve? What types of services will streamline tasks and coordinate data? For example, a system for online payments can make billing easier, while a CRM system can help you stay informed regarding your customers and the choices they make. Emailing services are also popular in terms of creating marketing campaigns. There is a wide range of functional, well-reviewed business systems out there that use top-notch software and are affordable, so make a careful list of what will help your specific business and go from there.

8. Choose the Optimum Work Environment

As our concept of office work changes with the times, the options for where we put in our daily work change as well. Many of us have decided to work from home for part of all of the time these days and have support from our offices and supervisors.

However, when becoming self-employed, individuals find that they have many options for when, how, and where they will put in their valuable hours. While some entrepreneurs still find they get the most work done in an office space, others work from home, at coffee shops and cafes, or even rent an office or a desk part-time at a co-working company. Finally, some individuals set up or even build a home office and find that they can focus there.

It is crucial for individuals to be honest with themselves (and, if applicable, their co-workers and families) regarding the best place to accomplish things. Many of us have experienced the fact that working from home can be equally comfortable and challenging. It is comfortable because we avoid traffic and usually have more time, but sometimes our work suffers based on a poor work/life balance when the details of our non-office lives invade our workdays. This sort of honest analysis will provide you with the best solution. You might start out by trying a few different workplaces and then look at your productivity. Where did you accomplish the most, and where did you feel the most focused?

When you become self-employed, finding the right physical space to work in is paramount to success and requires a solid sense of honesty and ambition.

9. Build Your Reputation and Establish a Business Presence

As someone who is boldly pursuing a career of self-employment, we do not have to tell you that every successful entrepreneur is aware of the importance of business connections. Starting your own new career and business is based in part on your ability to spread the word, connect with others, and establish a strong, positive reputation for your company. Why? Because this is how you will find customers who want to pay for your services.

Customers may be the lifeblood of all excellent businesses, but new companies also need the support of colleagues, advertisers, marketers, and the entire business community. One never knows: the individual you meet at a networking event may become a value investor in your business. All business journeys are dependent on the people who help you make things happen, and favors and helping hands go both ways. When you help out a colleague or rising entrepreneur, you are not only helping to establish your reputation; you may receive a return on your investment when you least expect it.

Therefore, the point here is to create as many meaningful connections as you can with customers. Yet, you can also go beyond this. Connect and network with the community at large, your industry colleagues, potential mentors, other small business owners, and of course, others who are newly self-employed. Trading tips and insights are an excellent way to gain knowledge and establish some people in your corner.

Networking also greatly increases your business’s visibility. This way, your new venture will be fresh in everyone’s minds. So why not bring some company swag printed with your logo to the next networking event? Simple gifts such as a pen or a t-shirt can inspire early brand loyalty.

10. Get the Word Out

Marketing is one of the most important aspects of starting your own business. Consistency is important here, too. Some businesses market themselves well for their company’s launch but find their customers have dried up after the initial wave. Investing time and resources into a quality marketing and advertising plan is a smart choice, with the goal being to find customers and keep them coming back for repeat sales.

Now that you are self-employed, you should know that visibility is key. You absolutely must be able to spread the word about your new company, and there are a variety of mediums to choose from. While the methods that you decide on will vary based on location, what you are selling, and your goals, the overall purpose is to publicize. Some businesses rely on radio or television, others place ads on social media sites, and others combine different outlets in their comprehensive marketing plans.

If you do not have the budget yet to contact a professional advertising or marketing firm, we suggest making a list of your goals, beginning with the best ways to get in touch with your target market. Be aware that advertising and marketing are processes that take time, and your first ideas may not be the best. Try out a few ideas and take note of what works and what does not. Your marketing list may include:

Event marketing
Email marketing
Direct mail
SEO writing and content
Radio, television, and the web (including social media)

The knowledge of your specific market and target demographic will enable you to choose and refine a successful marketing plan. It’s a good idea to start simple and work your way up instead of overspending on an advertising campaign that you find doesn’t quite reach the right people. Make sure to stay flexible in your approach.

11. Time is Everything, So Use It Wisely

Choosing self-employment is not easy, but it is increasingly recognized as a wise decision. Yes, individuals who decide to strike out on their own become instantly busy and usually stay that way. Yet, a unique and powerful sense of satisfaction comes from working for oneself. There is also a lot of responsibility inherent in establishing and growing a new self-sufficient company.

Our last key concept here is that of time and using time intelligently. While it might sometimes seem that there simply aren’t enough hours in the day, there are ways to give yourself—and your business—more time to develop and grow.

Here are a few tips:

Prioritize what matters on a daily, weekly, and monthly scale
Establish timely goals and do not be afraid to admit when you have not reached a goal, and change projections
Avoid busywork by assigning it to others or automating your process as much as you can
Be careful of the dangers of multitasking
Be aware that if you are a sole proprietor, you cannot take care of everything at once
If you have employees, delegate firmly and effectively
Remember to take little breaks to meditate, go outside, or simply stand up and stretch

We hope this brief guide to becoming self-employed has been helpful and informational. Use these suggestions to begin the exciting journey to establishing your own profitable, enjoyable business. Good luck, and we hope you enjoy being your own boss in the successful years to come.

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