Are you ready to take the plunge and take on the challenge of being your own boss?

The COVID-19 pandemic and the cost of living crisis have encouraged many to make their dreams come true at last. As of February 2022, the Bureau of Labor Statistics reported that almost 10 million Americans were registered as self-employed.

Going in blind is not the correct answer, though. Here’s what you need to do before becoming self-employed.

1. Do Your Research First

It’s surprising how many self-employed people fail to conduct a modicum of research before starting their businesses. Going in blind means, you are playing Russian Roulette with your future.

Perform market research to ascertain whether there is an actual demand for your idea. Reach out to your target audience and put your idea forward. Examine the competition and see if there’s space for another competitor. Once you have assessed the demand, it’s then crucial to research how you will boost sales. For instance, if you’re planning to sell supplements, look into how adding new ranges like private label gummies can help you capture the market.

The more research you do, the better your chances of forging a successful business.

2. Take Out Self-Employed Insurance

Self-employed insurance is a term to denote varying types of insurance aimed at self-employed people. In particular, you should take out insurance for self-employed individuals to cover your health insurance needs.

Your insurance costs are tax-deductible in many cases, so you can get some of the investment back come tax filing season.

Make sure you shop around for the best deals to get a cost-effective policy that gives you all the coverage you require should the worst happen. Unfortunately, the cheapest plans don’t necessarily provide you with the protection you would expect.

3. Get Your Side Hustle in Order

Most businesses begin as a side hustle, and for a good reason. Starting a side hustle while maintaining your day job allows you to flex test your idea to see if it works without investing significant sums of money.

Side hustles require just a few hours per day to manage and can fit around a part-time or full-time job. Opting for the side hustle approach is the safest option because if your idea fails to pan out, you can easily continue with your current job without putting your family and finances at risk. In many cases, successful side hustles naturally evolve into full-time businesses.

You can decide how much time and capital you invest in your side hustle.

4. Check Your Finances

Money is the lifeblood of your business. Unfortunately, many small businesses will not turn a profit for the first couple of years, and sometimes longer, so you need to ensure you can survive during the early growth stages of your brand.

Statistics vary, but one study estimated that first-year startup costs for a small business range from $30,000 to $40,000. Do you have access to this level of capital while also paying your household bills?

If your savings are insufficient to keep you alive, create a plan for sourcing outside investment. It could include using credit cards to pay some of your startup’s bills or approaching a traditional lender, such as a bank, for a business loan. There are specific small business loans florida that can be a useful resource for start-ups, and these can be discussed with the bank so you can ensure this will help you reach your goals.

If you plan on finding financing outside, you will need to consider your credit score. Poor credit scores will severely limit your ability to secure a loan at a competitive rate.

5. Develop a Plan B

Not every business will succeed. Up to 20% of small businesses will fail in the first year, with this number increasing drastically with every passing year. Not every company that failed was poorly managed. Some couldn’t keep up with the demands on their cash flow, or the idea was not suited to the market as it stands.

Nobody wants to consider failure, but it’s prudent to have a plan B should things not go your way. Some entrepreneurs go all in and put all their assets on the line, but this is a problem and means potentially losing everything.

Set parameters for when you will back out of your business and how you will protect your most important assets, such as your home, from harm.

6. Write a Business Plan

All entrepreneurs need a business plan. These documents are not purely for filling out loan applications. Instead, they denote everything from your business’s concept to how it will primarily market itself to your target audience. The company registration process can be complex therefore a formation agent can help individuals and businesses set up new companies. Registered office addresses, mail forwarding, and compliance assistance should all be taken into consideration when formulating your business plan.

Your business plan is what’s known as a living document. It will continue to change over time. Innovative entrepreneurs regularly refer back to their business plans as the market and their brands change.

The U.S. Small Business Administration has a free business plan template online you can use to get started.

7. Determine Your Risk Tolerance

There’s no getting around the fact that you will be expected to live with an unstable income for years to come. Entrepreneurs understand that business cannot always be good. You may have one great month and then three bad months.

Different types of businesses come with alternate levels of risk. Therefore, you must determine your risk tolerance and discuss it with your dependents.

If the risk is higher than your tolerance for that risk, it may be time to go back to the drawing board and consider starting a different type of business.

You can of course minimise this risk by making sure that you cover all of your bases as well as getting in touch with a cybersecurity monitoring service to make sure that you are keeping your business safe, especially if you are planning on doing most of it online. Small businesses can close due to breaches, no size is safe from hackers.

8. Take the Plunge

The final step before entering the world of self-employment is to take the plunge. Incorporate your business using the structure that makes the most sense for you. You will most likely settle on the Limited Liability Company (LLC) because there are fewer obligations and paperwork to cover than a C-Corporation.

Your business plan should detail the steps you’ll take over the first six months to a year. Then, take a running jump and launch your business. Regularly refer back to your business plan and make any necessary changes along the way.

Conclusion

Self-employment is exciting and scary simultaneously. Becoming your own boss means wearing multiple hats and learning on the job. Thousands of entrepreneurs fail every year, but succeeding means changing your life forever.

Stop thinking about starting a business and get to work. Follow the above steps to give yourself the highest chance of success. Are you ready to start your own business?

Running a car wash business entails a lot of planning. From resource planning to how you manage energy usage, running this business isn’t that easy. Oftentimes, car wash owners make huge mistakes that end up costing them. For instance, making mistakes with your car wash energy can lead to losses. To help you run your business smoothly, here are the top mistakes you shouldn’t make.

Business Equipment

A car wash requires equipment. However, you need the right equipment. As a car wash owner, you should shop around for energy-efficient equipment. Choose energy-rated equipment to save more energy in your car wash. Consider your budget. Also, get your equipment from the right brands.

Poor Pricing

Poor pricing can send customers away. Customers don’t want to be exploited. Thus, toxic pricing can mess up your business. Also, don’t underprice your services. You will end up not making any money. Stick with the average price on the market. Focus on quality services.

Marketing Mistakes

Designing a marketing plan is good. However, if you don’t follow it, achieving the intended results will be a dream. Thus, follow your marketing plan. Track the progress. Also, don’t overspend on your marketing. Moderately do things.

Too Much Investment

Start small. Don’t invest millions in your business. Anything can happen. Excessive investment can lead to over-expectations. Purchase quality items. Focus on delivering quality services. Pay close attention to customer care. These are the things that will take you far.

Unforeseen factors like weather, competition, and even the economy can frustrate you. Thus, starting small is the best way to go.

Poor Customer Service

The most important person in your business is the customer. A happy customer will always return. Thus, focus on delivering exceptional customer service. The way you handle customers is important. Use polite words. Respect is key. Understand customer needs.

Huge Labor Costs

Labor is one of the biggest expenses in a car wash business. If you aren’t careful, these costs can cripple your business. Thus, avoid hiring too many people. Hire a few, skilled people to do the job. Invest in automated machines if you want to make a profit.

Design a good plan. Stick to it. Train your staff. Focus on improving their efficiency. Make them accountable all the time.

Testimonial Marketing

Marketing is an important aspect of any business, including a car wash. Thus, not investing in marketing will restrict your business to a bare minimum. Thus, consider preparing testimonials. Have a website. Prepare good videos. Audios can do a good job. Promotional items will make your business stand out.

Poor Strategy

Any business requires a good strategy. A car wash business is no exception. Remember, you are going to invest a rel=”nofollow”lot of money into this business. Thus, you need a clear plan regarding where you are going. What do you want to achieve? What are your timelines for achieving those results? These are the questions you need when designing a strategy.

The Bottom-Line

Lack of strategy and excessive pricing are some of the biggest reasons why most car wash businesses close. Also, things like excessive investment and poor customer service can cost your car wash business. If you want to succeed in the car wash business, avoid making the above mistakes.