CONCEPT OF SELF EMPLOYMENT
Self-employment is the act of generating one’s income directly from customers, clients or other means as opposed to being an employed.
Self-employed people generally find their own work rather than being provided with work by an employer, earning income from a trade or business that they operate.
Being self employed is challenging in a developing country like Nigeria where there is no regular supply of power, water, and other public utilities required for a conducive environment for starting your own personal business on a small scale or large scale.
This is why majority of people would prefer the security of working for an employer whether a sole proprietor, private company or public company.
The financial security or regular salary is a guaranty as long as the employer is active and the enterprise is lucrative.
The conveniences of regular income, fringe benefits, leave or vacation allowances and pension make many people to shy away from self-employment and in most cases they end up either fulfilled when they retire or unfulfilled.
The fear of poor or irregular salary or losing your job can make you consider being self-employed to fulfill your own dreams and be your own boss.
When you take up the challenge of being self-employed, you should consider the advantages and disadvantages too.
Because, working at the pros and cons will go a long way to help you to overcome the trials and go ahead to succeed.
Factors to consider before embarking on Self-employment
Once you have decided on the business venture you intend to embark on or invest in, you should take the following steps.
- Carryout Feasibility Study: You should carry out a feasibility study of the kind of business you want to embark upon. This is a small business plan with your venture capital. This will show the profitability of your business.
- Possession of Some Capital: You should have some fund or capital to start and run the
- Register a Business Name: You should go ahead and register a business name for your
- Study About Taxes: Do not fail to pay your tax no matter how small. At least, your income tax
is a must before you can pay the other required taxes.
- Start on a Small Scale: Start on a small scale with the capital you have. Do not go into
borrowing from banks at the beginning.
- Carry out Market Research: You should be able to identify or know the potential consumers of
- Ensure Better Packaging: Do your products and package them very well. You should try and package them differently from what is already existing. This will help you to penetrate the market.
- Recognized Your Talent: Recognize what you can do.
- Watch Out for What People Need: You should be able to watch out for what people need
before embarking on such business.
- Recognize Your Potential customers: You must recognize your potential or target customers
- e.g. schools, general public, children, etc.
- Expert Advise: Make consultation or seek expert advice on new business.
- Go for Training: Go for training on a new business you have no idea of.