Thursday, 6 March 2014

How to be a successful self-employed

Hello Guy's and Gal's

I am showing you how to be a successful self-employed.

Offer a specialised service.

A specialised service is what the no another company doing.  Such as a product that doesn't exist in the marketing.  For example, A shop that selling all sort of the donut, such as blueberry flavour donut, raspberry dounut or banana favour donut.  You can dream up idea on any products and improvise it.

Doing something for the good cause.

I love doing anything for the good cause as I done the fund raising to support charity.  This photo is one of the my fund raising activity.



It will be good for your business reputation.

Don't underprice yourself.

Never ever under price yourself, if you do.  That's crazy because it can destroy your business!  I tell you from my experience by selling DVD / Blu-Ray which it is very difficult because I order DVD at the trade price of £11 and always sell includes the fee, administration, tax and little profit at least 25p.  The problems is the large company with a big spending power as they can buy 5,000 at £4 each and they can sell at £10 which it is cheaper than what I buy for the trade price.  The best things is to rule it out and do the research to find the best deal and able to match another competitor.

Always take the work.

If doing nothing and your business can easily go nose dived!  Just make sure everything keep running and keep it in check.  Even when you are on holiday and thankfully for the internet which you can keep your eyes on business easily.

Employ your spouse and save tax.

It is true that you can save your tax.  For example, if you earn £1000 a week and you get £286.09 deductions and if you and your spouse earn £500 a week each and you get £105.81 each, the total is £211.62.  Then you are £74.47 better off.

Claim household expenses

You can against tax by what you have spend on household products, telephone, stationery for your business to against tax.

Travelling expenses

Never forgot to write your travelling expense forms then you can claims it from the tax.  First 10,000 business miles in the tax year is 45p per miles, but, after 10,000 miles is 25p.

It is very helpful for your business.

Keep all receipts and Invoices.

Make sure you claim for everything for your business.  Such as Books, Ruler, Printer inks and everythings else that for business.

Register to pay VAT

You need to register for VAT if your annual turnover is £79,000 or more (from 1st April 2013).  You add 20% VAT to your invoice, and pay the total amount to Customs & Excise every 4 months.  But you also get to claim back the 20% VAT that you pay to another company.  If your company earn less than £79,000 means your bigger clients can reclaim the VAT, and it makes you look more professional.

 Pay less stamps

You're legally must to pay two kinds of National Insurance contributions.

Class 2 costs at the flat rate £2.70 a week.  However, if your earning are below £5,735 per year (2013-14) you might not need to pay.  These information can be found at HMRC Class 2.

Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 9% on annual profits between £7,755 and £41,450 (2013-14) and 2% on any profit over that amount.  Again, these information can be found at HRMC Class 4

Build freelance contracts before going self-employed.

Go freelance only when you got five regular customers.

Set aside one hour a day

Use this time for networking, marketing and social media promoting your business.  The most difficult part of freelancing is finding new work.  Schedule time every day to keep making new contacts.

Invoice immediately! 

And chase promptly when due.  Slow payments are the curse of most freelancer's lives.  Any slow payment (after 30 days and must includes this information on the invoice) then you can charge of between £40 (for a debt less than £1,000), £70 (for a debt between £1,000 and £10,000) and £100 (for more than £10,000). Or reference rate of 8% interest.  See for the further information at "A users guide to the recast late payment directive" pdf file.

Accept at least one regular contract

Chopping and changing between new jobs sounds more exciting.  But reality is, you need a constant and guaranteed source of income to cover any lean period or irregular periods.  For example, lawnmower business always very busy during the warm weather and very quiet during the winter.

Register your company name.

If you have spend time developing a good name for your business, contact the Intellectual Property Office about having it registered as a trademark.  Visit www.ipo.gov.uk for further information

Become a Limited Company

This will add a credibility and impact to your business's reputation.  People immediately assume dealing with a Limited Company is safer and more straight forward.  Check out at www.companieshouse.gov.uk

Hired a chartered accountant

This can help to save your times and money. 

I hope these advice will be very useful for you.

Shaun :)

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