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Going it alone in the big bad world of business is certainly an attractive prospect. It offers a chance to take control of your future while there’s also the possibility of earning more money. Besides, the success gained in this arena can feel twice as rewarding too.
While the positives are plentiful, some factors aren’t quite so enjoyable. Here are some of the dangers to look out for, along with what can be done to avoid minor issues snowballing into serious trouble.
Increased Financial Responsibility
Going it alone can result in increased revenue. However, it’ll only be possible when you take great care. There are a number of key decisions to make. Firstly, you need to consider the advantages of being a Limited company over a sole trader. For immediate financial reasons, as well as future business growth, this step could be key.
It’s also worth noting that you don’t get paid annual leave when working short-term contracts or multiple deals at once. As such, you must factor in those losses. Otherwise, you’ll be left in a worse financial situation than you imagined. Or you’ll need to sacrifice your social life to retain that revenue.
Being Judged More Frequently
When leaving traditional employment, you may feel that it’s an end to interviews and other anxious tasks where you’ll get judged. On the contrary, looking for contracts means you could be in these situations even more regularly. Preparing for them is essential. Meanwhile, a killer portfolio says a lot too.
Image is important, especially when operating in a professional zone such as consulting. Take care of your appearance while staying organized, and you won’t go far wrong. It can still be a daunting prospect, but it will get a lot easier with time. Put yourself into those situations, and you’ll soon see the difference first hand.
Competitors Will Try To Undercut You
If you thought the normal business world was tough, the freelance world might not be for you. Sadly, your situation of working to a slightly different set of guidelines can make you more vulnerable. Worse still, some sole traders and businesses in the industry may try to steal work from under your nose.
This can happen even consciously or subconsciously but is always a major problem. The only way to overcome this is to always provide value for money. Give clients and temporary employers more than they’re expecting, and they will keep coming back for more. This will go a long way to gaining stability.
You May Need To Make Investments
As with starting a standard business, going it alone can require an outlay. You may need equipment, commercial spaces, and marketing materials. Understanding the different types of funding and borrowing is vital for making smart decisions. Selling yourself short simply isn’t an option.
Still, taking those risks isn’t that fun. Thankfully, the reward for taking that leap of faith can be incredible. Get it right, and the positives of going it alone will outweigh the negatives by a considerable distance. Suddenly those not so enjoyable features feel far less significant.