Self-employed entrepreneur: when, how and what

Starting your own business is not easy and are you an entrepreneur or is it still a hobby? How do you proceed with making a plan, what should you pay attention to? All these questions are discussed in this article about becoming a self-employed person.

When are you an entrepreneur?

For some people it is difficult to distinguish whether they are involved in something as a hobby or whether they are entrepreneurs. The difference is partly in the hours. If you put at least 1250 hours into the company, you are considered a company. It is also important that you must be able to generate sufficient income from it to keep it running. However, all starters will first have to invest some money, which can be to prepare a building, but also the little things such as promotion. If you are going to become an entrepreneur, remember that you are liable for the debts yourself and if you have to live on them, you will have a profit target.

Consumers

You will probably find most consumers in the nearby area. It is therefore important when starting a business to look at the consumers in your area. For example, you can ask the municipality how many inhabitants the place where you want to settle has. The size of the households does not necessarily have to play a role. If you want to locate in a wealthy neighborhood, this does not mean that they will have more money for your product. Also think about what kind of target group you have, are you going to start a clothing store for children or a painting company? You have different target groups for this.

Competitors

Look around the neighborhood to see how many of the same businesses are already in the area and how far away from them you are going to locate. Try to offer something different than the competition so that you attract consumers. You can’t ask the other company for numbers, but you may be able to see how busy they are and how big they are to see approximately what their turnover will be. If you are smaller than that company, definitely try to bring something innovative to the area.

Marketing

A number of words that all start with the letter ‘p’ apply to this:

  • location of the company – you can establish a company at this location according to the municipality’s zoning plan
  • product
  • presentation – what does the company look like from the outside
  • staff
  • price
  • promotion

All these things contribute to becoming a good company.

Bookkeeping

Good bookkeeping is mandatory for any company. If your company is large, you can hire an accountant and/or bookkeeper who will keep track of it constantly. If you become a small business, you can set up simple administration via computer with the help of an accountant. If you keep track of it properly, you only have to send it to the accountant once a year to have it checked. If you have good administration, you immediately have a good overview of whether you are making a profit or a loss and what it is all about. You have to file your tax return every 3 months, this can also be done via computer.

Failing entrepreneurs

Many companies stop again after 3 years, this may be for the following reasons:

  • insufficient preparation
  • wrong housing
  • unclear agreements
  • financial problems
  • poor administration
  • problems with staff
  • disappointing turnover
  • problems with the tax authorities
  • intrusion on social life – if you have a home business people sometimes come to the door at inconvenient times

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