Self Employment

Many see working for themselves as the ultimate freedom. Doing what you want, when you want and how you want, whether this is alongside your studies, or as a graduate.

The reality may be a little different. This page helps you dig deeper and learn more about this fascinating way of working.

Benefits of working for yourself
They say life begins outside your comfort zone. Working for yourself stretches and develops those prepared to learn. The skills and resources cultivated on your journey will stay with you, while confidence and self-reliance are typically developed too.

Those who like to do things their way will enjoy added freedom and flexibility. Plus, there’s a chance to be creative and innovative, to see clear results for efforts and profit from your passions. What’s more, hard work and success can bring substantial financial rewards.

You should enhance your CV and develop valuable transferable skills for employment.

Challenges of self-employment
Building a business from scratch can be exhilarating. However, be prepared to work hard, sometimes for long hours. Remember, self-employment offers less security. If you are ill, for example, you won’t get paid and you may be pressured to continue to work. You’ll have to rely on your wits and personal resources, which supports personal development, but is stressful for some.

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Types of self-employment

Sole trader
Most self-employed workers are , running the business themselves. This is the simplest form of business structure. This includes working in the 鈥榞ig economy鈥� as freelancer.

Freelancer
Money is earned per-job or task. Jobs can vary in duration, depending on the business, from a few minutes to many years. Freelancing has experienced substantial growth as many companies find the flexibility of hiring independent freelancers attractive. This has created opportunities that can fit-in well alongside study. However, as most gigs offer fewer rights, such as sick pay and holiday pay, they have been criticised by some as exploitative.听 Platforms such as and match freelancers with businesses and pay them per job. This can enhance student and graduate skills and experience.

Partnership
A formal arrangement between at least two parties to collaborate and share profits. Partners might share liability or can form a .

Limited company
A is a legally distinct organisation from the people that own and manage it. This allows the owner(s) to separate their personal assets from their business assets. There are added reporting obligations and Companies House provides detailed information on .

Entrepreneur
This particular group of self-employed people are characterised by their mindset and traits which make them suited to success in self-employment.

Attitude to risk. They tend to be comfortable with risk, but focus on minimising risk, rather than being reckless gamblers, as they are sometimes portrayed.

Continuous improvement. A mindset of seeing setbacks as opportunities to learn rather than 鈥榤ini-failures鈥� makes entrepreneurs resourceful and tenacious while getting better at what they do.

Dedication. They often 鈥榯hink big鈥� and therefore put in long hours investing time, energy, and resources to reach their goals.

They are also associated with persuasive communication skills and an ability to innovate.

Starting out

Whether student or graduate, if you’re eligible to start a business in the UK, it is relatively easy to launch your business. There is little red-tape or cost to prevent some businesses from trading immediately.

Student businesses
UoR Students have started businesses including:

• drawing pet-portraits
• teaching a foreign language online
• filming live music for local bands
• selling second-hand clothing
• hand-made Christmas and birthday cards.

Many businesses begin with little more than a good idea and a passion to make it work. Drive and energy are important though, as you have to motivate yourself to develop the business and overcome problems.

International students
Unfortunately, those on a student visa (tier 4) cannot normally be self-employed in the UK. Stiff penalties exist for those violating the terms of their visas.

Graduates (or students close to graduation) can apply for the .

International students have full access to 黑瓜吃料网 resources and support.

Support and development schemes

• led by Henley Enterprise Lab (HELAB) and supported by Henley Centre for Entrepreneurship (HCfE), is an initiative that aims to help students and alumni who have a business idea or a start-up business progress to the next level by offering one-to-one advice from a business expert. Open to all students and Alumni at 黑瓜吃料网 and Henley Business School, appointments are bookable on MyJobsOnline.

• is a student run social enterprise that helps develop skills and confidence to start your own business.

• is a student led group (黑瓜吃料网 Students' Union) supporting entrepreneurship development through events, networking and guest speakers.

• The set up in 2018 by Henley Centre for Entrepreneurship (HCfE), is an initiative to provide current 黑瓜吃料网 or Henley Business School students with a workplace to develop their business ideas.

• offers free advice and support for those looking to start or develop a business in Berkshire.

• Berkshire Live provide case studies of local enterprises.

• offer pre-start-up and small business support.

Requirements

Crucially, your business needs to comply with UK law. Other requirements include:

Finances. You’ll need enough money to start and run your business until you are profitable. A bank account is essential to manage the finances for your business.
Equipment. Make a list of what you need, whether phone, computer, software, or more specialist equipment.
Premises. Although many businesses start from ‘the bedroom,’ or garden shed, you’ll need to consider the space needed to run your business.
Record keeping. A record of all your business income and costs is needed for tax returns and profit and loss calculations.

In addition, you should have a plan to develop your idea and, in many cases, insurance.

Funding and finance

How to fund your business is a key question for any budding entrepreneur. The most common is through personal savings or friends and family. There are many other options to听.听听The common options are explored below.

Loans

罢丑别听听allows up to 拢25,000 to be borrowed. Their regularly updated听听signposts to other funding sources and assistance.

尝辞肠补濒濒测,听听helps Berkshire based businesses already trading.

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Crowdfunding

Online peer-to-peer funding platforms have emerged that match those in need with those who are听prepared听to help. Sites like听,听听and听听are perhaps the best known, and have raised money for many worthy causes, including early-stage businesses. However, specialist crowdfunding platforms that match business with investors might be a better fit.听听focusses on start-ups,听听is aimed at small businesses, while听听concentrates on new technology. Startups has听.

As always, do research based on your needs. As for any funding application, you鈥檒l need to make a persuasive case to attract investors.

黑瓜吃料网 has its own section on the听.

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Intellectual property

If you have created a commercial concept, product, or artistic work such as a book, design, music, film, or play, you should consider protecting it legally through intellectual property rights. Some rights, such as copyright are given automatically, while others need to be applied for. You can also take听听to prevent your creations from being stolen. 罢丑别听听in the UK government is responsible for patents, designs, trademarks and copyright.

The Chartered Institute of Patent Attorneys (CIPA) offer听听to pre-start-up and early-stage businesses.

Insurance and complying with the law

Some insurance is compulsory, so research requirements for your sector before starting to trade.

Your business type and model determines your insurance needs. Common examples include:

professional indemnity which protects businesses that offer professional services from claims against negligence
public liability protects from claims made by the public
buildings and contents insurance protects against theft and property damage.

There are many specialist packages out there, such as market traders’ insurance and employers’ liability insurance. UK based offers specific information on .

You may think freelance workers don’t need insurance. This isn’t always true. So first, investigate or contractor.

Tax and registering your business

After starting trading, you’ll need to .

You’ll then receive a Unique Taxpayer Reference (UTR) used when . You will be responsible for taxes and contributions if your income is above the minimum threshold for the tax year.

Your entrepreneurial journey

Seeking ideas and opportunities

A good starting point is to identify a gap in the market or a problem you think needs solving.

Any specialist skills and qualities you have will be an asset, so consider how you might channel these into a business. Relevant knowledge and contacts in a particular field can similarly guide your idea development.

Being passionate may be a cliché but choosing something you enjoy will help keep you motivated. You’ll have your own reason for starting a business, so also consider how your idea can fit the lifestyle and values you imagine.

You can browse the Startups website for ideas. Companies House have a selection of including young entrepreneurs.

Developing ideas

Feedback and testing the validity of ideas is important early on, before investing too much valuable time, money, and resources. Market research to explore the desirability and demand for your idea should highlight any inherent problems and opportunities, while directing you to successful outcomes. Also consider the type of customer for your product. Tools such as Ask Your Target Market () can then set surveys up.

Observing trends will help identify growth markets. Look for trends that are:

economic
social
technological
caused by changes in laws or regulations.

Investigating the financial feasibility and the competition you will face will solidify your idea and perhaps lead to a business plan.

Business planning

While not often seen as the most exciting aspect of starting a business, anticipates many pitfalls new business owners face and often forewarns of costly mistakes. It clarifies ideas and sets goals, leads to better forecasts, and answers key questions including:

How much money is needed?
How will you overcome problems such as gaps in knowledge or experience?
How will you acquire and retain customers?
What price should your product cost?
What profits (losses) can you expect?

Banks and investors insist on a credible business plan for funding.

Advice and templates are available to structure and guide you, including who also offer , while websites such as offer .

Launch

It’s worth considering how you’ll create that important good first impression.

Publicity is imperative if you don’t have customers. Launch is an opportunity to create excitement and interest. Consider social media campaigns, an event or other promotions.

Growing your business

offer free advice and resources to grow a business.

Reaching customers and selling product will be a key priority. has many resources to glean insights and connect with customers.

Time is money, so establishing policies and procedures to manage operations quickly and smoothly should be a priority. This allows others to step in when you are not there.

Customer feedback allows you to improve and iron out problems. Knowing what customers like informs development of your brand and refinement of your offer. Building a reputation is important at this stage. Do this well and your customers will publicise for you.

You may wish to to support growth. Be sure to understand .

You may wish to plan for future with your finances, find out about pensions for the self-employed in this.

Explore further career options