There’s nothing quite as sweet as the taste of freedom. And what’s more freeing than being your own boss?
Sure, getting paid the same amount every paycheck and the structure of routine work might feel like a safety net, but setting your own hours, working to the beat of your own drum, and – in many cases – making more money can be much more appealing.
That’s why you might be considering joining the many young Aussies who are throwing traditional employment to the wind. We’ve noticed this first-hand at Hnry, which has been offering digital accounting services for the self-employed, where sign-ups from Gen Z sole traders have skyrocketed by 127 per cent in the last year alone.
Whether you’re considering turning your hobby into a hustle, going out on your own as a freelance creative, or reassessing your work-life balance as a healthcare worker, sole trading can be the answer you’ve been looking for to strike a more independent, flexible and fruitful relationship with work.
So, how do you get started?
Trying anything new is undoubtedly scary and takes some planning. With 10 per cent of the working population being sole traders, a sector which grows by 50,000 each year, 1.5 million Aussies have already nailed it. You just need to know how. Here are five tips for getting started as an independent earner:
- Dip your toe in first
It might be tempting to jump in all guns blazing, but remember Rome wasn’t built in a day. Your first step should be to identify what you’re going to sell, and who you’re going to sell to. Before quitting your full-time role, validate that there’s a market for your product or service by selling it on the side. If the demand is there, then you can think about going full-time self-employed. - Work out your worth
Everything comes at a cost, so don’t be afraid of having the price conversation with potential clients. Research standard rates in your industry to get a ballpark figure, and factor in all of the hidden costs. An oversight for first-time sole traders is not accounting for sick leave, annual leave, superannuation and taxes into their prices. Start with your desired take-home, and add on from there. - Build your brand
Creating a brand takes time, so starting this early on is essential. Regular social media activity and launching a website are easy first steps that send trust signals to potential customers or clients. They don’t pay off immediately, but giving them regular attention will pay dividends in the long run. Your future self will thank you. - Get your house in order
Don’t fall into the trap of thinking you need a company/Pty Ltd structure to operate as a business in Australia. You actually don’t. Getting yourself an ABN to operate as a sole trader is often far easier, quicker (and less expensive) to set up and hit the ground running. - Don’t put off the boring stuff
Income tax, tax deductions, GST returns, expenses, invoices, student loan repayments… the very dull (and complex) list goes on. But it’ll only snowball if you leave it until the last minute. Set money aside for your tax bills early, and don’t throw away or lose those business expense receipts.
