A graduates guide to

Self-Employment

After graduating, you may find yourself considering becoming self-employed. In March 2021, there were approximately 4.3 million self-employed people in the UK.

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Self-employment

Everything you need to know…

Self-employment is the overarching term used to refer to someone who works for themselves instead of for an employer. Being self-employed means you will be your own boss, run your own business, and have greater flexibility with most aspects of your work. This can be an enticing option for many people, depending on the type of work you want to do and the amount of control you’d like over your work/life balance.

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MORE OPPORTUNITIES

Self-Employment in Lincolnshire

Did you know that a higher percentage of people are self-employed in Lincolnshire compared to the UK average?

10.5% of economically active people in Lincolnshire are self-employed, higher than the UK average of 9.9%. This means that you’ll have more opportunities to expand your network and collaborate with other self-employed people across the county if you stay in Lincolnshire.

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THE RIGHT DECISION FOR YOU?

Pros and Cons of Self-Employment

There are many differences between self-employment and being an employee for another company so it’s useful to consider the pros and cons of self-employment before deciding if it’s the right direction for you.

Pros of self-employment

  • You are your own boss – so you can dictate how to run your business.
  • You can be more flexible, you control the hours you work, so can take time off if you need to.
  • You can decide where you want to work and this can often be at home, so you’ll save money on commuting!
  • All the money you earn is for you and your business so rather than being on a fixed salary, you can really benefit from doing well.
  • If you manage your time effectively, you’ll likely have a better work/life balance.

Cons of self-employment

  • Self-employment can be demanding as you are responsible for all levels of your business.
  • If you are forced to take time off work, you won’t be given sick pay.
  • You won’t receive employee benefits, like holiday pay or pension contributions so you’ll have to manage this yourself.
  • You won’t necessarily have a guaranteed monthly income, and your pay will depend on how much work you do.
A graduates guide

How do I become self-employed?

It’s most common for individuals to make the step into self-employment after a few years in the industry, once they have had the opportunity to build up some experience and develop their networks.

Nonetheless, there’s nothing stopping you from jumping straight into the world of self-employment! The Growing Graduate Enterprise scheme is open to you within the first 3 years of completing your studies and allows you to benefit from £10,000 to support starting a business in Lincolnshire.

If you’re lacking the confidence to dive straight in, you could build your self-employment portfolio whilst still having the safety net of a full or part-time job.

The first of these considerations is defining your working situation. It is important to consider the 3 primary types of self-employment businesses, each of which operates in slightly unique ways. Think about which of these business types best applies to your situation.

  • Sole Trader- A sole trader is a type of business owned and managed by one individual. If you become a sole trader, you are responsible for all profits and losses the business makes.
  • Partnership – A Partnership functions similarly to a sole trader but the key difference here is that it involves 2 or more people combining their specialist expertise to manage the business together. So, if you and your friend want to start a business in a specialist area, you would fall under a partnership.
  • Limited Company – A limited company is a type of business that is registered at Companies House. Because of this, these businesses have their own legal obligations and rights which means that as a self-employed individual working for a limited company, you have more security than you would as a sole trader.

For more support on these differences, click here.

There are other considerations that need to be made, including start-up costs, business insurance, and the need to complete self-assessment tax returns. On top of this, when you are ready to register there are various legal considerations that need to be made in order to become self-employed, you can find out more about these requirements here.

If this all feels a little daunting, then you’re not alone and both the University of Lincoln and Bishop Grosseteste University offer support for students looking to start their own business and become self-employed. You can access them using the buttons below.

HELPFUL LINKS

Resources and Support

Once you’ve done this, you’ll be ready to launch your exciting self-employment career.

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