Definitions are funny things. Often people say, “I’m tired of working for a company. I’m going to work for myself.” What they miss is that, whether they are working for someone else’s corporation or for themselves, they are still working for a company. Unless the work that you’re doing is a hobby, you need the legal and financial protections that being a company provides.
When you’re working for yourself, you can’t do it all by yourself. You lack the skills and the time to become proficient in all the areas needed to properly run a business. But, with a little strategic help, you can achieve success and have a good work/life balance. Here are some people/businesses, that can provide what a business needs.
Lawyer – It doesn’t matter what kind of company you have, whether it’s large/small, simple/complex, there are decisions you will need to make to protect yourself, your company, and your work. Talk to a lawyer before you establish your entity, because there are several different ways to structure your company. The legal environment has become more complex. The situation has been made more difficult with each state enacting laws that make doing business in one state very different from working in others. Trusting on-line resources will not take into account the nuances of your type of business, and the differences in your city or state. A couple of hours with a small business attorney may well save you tens of thousands of dollars over time.
CPA – Every year on April 15th, you will need to file your tax return. You might decide you want to do your taxes yourself, but tax laws change almost on an annual basis, and even though you might be good with numbers, and may have the latest software, you will likely save money if you have a professional giving you tax advice, and filing your taxes annually, especially since you’re not just doing your personal taxes anymore. You have a business that needs to have its taxes filed annually. That may be a little or a lot more complex. The advice that a thoughtful CPA can give you will be well worth the time and money you spend.
Bookkeeper – Certainly, you need accurate accounting information for your CPA to do your taxes, and experience shows that clean financials will likely reduce your CPA’s bill. But it’s even more important to have accurate bookkeeping so you can understand whether you’re making money, and where you’re spending your money. Not only is it important that your bank accounts are reconciled properly every month, but there are journal entries that need to be made to give you the most accurate information on how your business is running, and how you can make it run better. Even though you’re a solo, understanding more about your business’ finances will make you a better businessperson, and result in your having a more successful business.
Business Insurance – You’re thinking that as a solopreneur or independent contractor you either don’t need business insurance, or you’re confused as to the types of policies or amount of coverage you need. There are a dozen different policies you can buy for your business. Some insurance companies offer package policies for small businesses that provide the basic policies you’ll need. And keep in mind that Professional Liability and Cyber coverage aren’t necessarily included in a package policy. In this day and age, you’re definitely going to want those coverages. This is important to protect, not just your company, but your clients as well.
Health Insurance – It doesn’t matter whether you are young or old, healthy or have an occasional ailment. You need health insurance. Especially in the current economic climate, when the cost of medical care without insurance is prohibitive. You need to have access to affordable medical care. But if you’re working as a Solopreneur, those costs can get high, and there’s a limitation to the options available to you. Most insurance companies now offer coverage for companies that may only have 1 employee. Just be aware that the costs are going to be higher than if you were part of a larger group. You can help reduce those costs by increasing your deductible, or eliminating some of the ancillary policies that are typical of what large companies offer, like vision, long term disability, or dental.
Managed Services for IT – Computers and the software/apps we use have become more and more complex over the years. As if that wasn’t problematic enough, your computer is at risk because of the hackers that are, not only trying to steal your information, but want to use you as a conduit to get into the computer systems of your customers. So, you need to make sure your computer has virus and ransomware protection that will scan your emails and all the files you have on your computer. Plus, in spite of what they promise, there are little bugs in nearly any basic program that will drive you crazy. You don’t want to wait till you have a problem with your laptop to start looking for someone to help you get back up and running. To many consultants, their laptop is a critical tool they need to serve their clients. You need someone that can help you make sure your computer gets back up and running quickly if something happens so you can get back to running your business. Heading to the Geek Squad at a critical time isn’t always the best alternative.
Full Service CRM – As you spend time building your company, it’s important to keep track of your prospects and past clients. As you grow, the number of things you need to keep track of increases exponentially. You need a CRM to help you track those prospects and clients, and guide you on who you need to talk to to keep them in the loop. There are many different systems out there that vary in complexity and cost, but to really grow your company, it’s going to be important to have a CRM to guide you.
You may have decided to work for yourself, but that doesn’t mean you need to work alone. Just as you can’t be knowledgeable in all aspects of what it takes to run a business, it is often more cost effective in the long run to have experts in a number of fields to help guide you in specialty areas. We’ve tried to identify some critical areas where support might be needed. Don’t shortchange yourself or hobble your future growth. Find the experts you need to guide you in making critical decisions. Your company will be better for it.