How to Become Self-Employed In 2024: A Guide

If you're tired of the traditional 9 to 5, becoming your own boss may be the perfect change you need to make in 2024. Being self-employed offers plenty of advantages, and one option to explore is starting your own cleaning franchise business. July 2023 saw around 4.24 million self-employed workers in the UK - a rise from the 3.2 million in December 2000, and this is a number that is likely to remain stable, if not grow, as people opt for a better work-life balance, and the chance to pursue a job they truly enjoy.

In addition, economic uncertainties, changing work culture, especially post-pandemic, technological advances and the flexibility it offers make becoming self-employed an attractive proposition. In this guide, we'll delve into self-employment, including the benefits, potential challenges, costs and opportunities for starting a cleaning franchise.

 

Key factors to consider when thinking about self-employment.

Becoming a self-employed business owner is a big step and can pose certain risks - and this is why self-employed businesses must carefully consider various factors to maximise their chances of success. Here are some of the key factors you need to consider when you register as self-employed:

Determine Start Up Costs

The first step is to determine the start-up costs for your business, including any equipment, insurance or licenses you may need. Always be conservative in your estimations; self-employed earnings can take a whole to build up, so always overestimate costs rather than find yourself short.

This is also the time to assess your financial stability and create a plan and set up a business bank account to help you manage potential fluctuations in your income.

Produce A Business Plan

The next step is to determine what you are going to do and develop a detailed business plan that outlines your aims, marketing strategies and financial projections. Remember to conduct thorough market research to understand demand, competition, and your potential target audience.

Consider the time commitment required for self-employment and ensure you can effectively manage your workload while maintaining a healthy work-life balance, and take time to consider your skills, expertise and experience concerning your chosen area of self-employment and whether you need to explore training options.

Determine Which Type of Business Is Best for You

Self-employed workers in the UK have a few choices when it comes to the structure of their business - you can opt to be a sole trader, meaning that you are the sole owner of your business, or you can form a limited company and register with Companies House. To decide which works best for you, consider the following:

1. Liabilities

As a sole trader, you are liable for any debts incurred by your business and have unlimited liability; as a limited company, however, shareholders have limited liability, as there is a division between personal and business assets - this means that any business debts incurred by the company will not be passed on to them.

2. Tax

As a sole trader, you will pay income tax on your profits at the same rate as other taxpayers; as a limited company, you will pay corporation tax on any profits made.

3. Administration

Setting up as a sole trader can be relatively simple and inexpensive compared to forming a limited company, which requires more paperwork and may involve professional advice.

4. Support

Being self-employed can be a lonely experience, but there are organisations that offer support and advice. As a sole trader, you can access the government's Start-up Loan Scheme, which provides financial support to help new businesses get off the ground. Limited companies may be able to access additional grants or funding opportunities, such as tax reliefs or Enterprise Investment Schemes.

Ultimately, your decision should be based on what works best for you and your business. If you do decide to become a sole trader or limited company, it is imperative that you register with HMRC and keep accurate records of all income and expenditures.

Understand Tax and NICs

As mentioned, you will need to register with HMRC whichever type of business you choose; it is also important to understand the tax obligations and national insurance contributions that come with running your own business. This can vary depending on your chosen structure, so be sure to do your research to ensure that you are prepared for your self-assessment tax return.

Business Insurance

You should also determine whether you will need business insurance for your new venture - many businesses will opt for public liability insurance to protect them against any issues that may arise, and some business owners will choose critical illness cover to cover against loss of income in the event that they become unwell.

 

Advantages and disadvantages of becoming self-employed.

Considering the pros and cons of self-employment is important in helping you make an informed decision. By weighing up the benefits and challenges, you can gain a realistic understanding of what it's like to be self-employed today.

Advantages of becoming self-employed.

Freedom and autonomy

When you are self-employed, you can make your own decisions, schedule, and choose the type of work you want to pursue, giving you more control over your daily working life.

Unlimited earning potential

While traditional employment typically has a fixed income, being self-employed allows you to directly benefit from your hard work and earn a higher income as your business grows.

Flexibility

Self-employment offers much greater flexibility across all aspects of your work, from working hours, and location to work-life balance.

Increased variety

Self-employment often involves working on diverse projects or with different clients. This enables you to experience a variety of work and utilise your creativity.

Personal fulfilment

Building your own business and seeing it grow and thrive is incredibly rewarding and can provide a great sense of personal fulfilment.

 

Disadvantages of becoming self-employed.

Financial uncertainty

Being self-employed can come with financial uncertainty, especially when your business is still very new. You will need to maintain your own taxes.

Increased responsibility and workload

When you are self-employed, you become responsible for all aspects of your business. This includes administration, marketing, customer acquisition and operations, which can result in a high workload and responsibilities.

Lack of employment benefits

You won't receive employee benefits typically associated with traditional employment. For instance, paid holidays, employer contribution pension schemes and sick leave.

Isolation

Being self-employed can feel isolating for some people, especially if you mostly work from home.

Limited resources

You may have limited access to resources otherwise available to those working in larger organisations - this includes no access to paid leave or other benefits.

 

Different types of self-employment options to consider.

When considering your options for self-employment, there is a wide range of possibilities to explore. Here are some popular types of self-employments to consider:

Starting a franchise business.

Invest in a franchise business, and you'll benefit from a proven business model, established brand recognition, training and ongoing support.

Freelance or consulting

Freelancers and consultants have specialised knowledge or expertise in a particular field. This could include graphic design, web development, copywriting, photography and business consultancy.

E-commerce and online business

You could set up an online store or sell products through platforms like Etsy, eBay or Amazon.

Professional services

If you have expertise in accounting, legal, healthcare or coaching, consider offering your professional services to clients in your chosen field.

Creativity

You could turn your passion for art, crafts, writing or photography into a business where you sell your creations or deliver workshops.

Service-based business

Start a business that offers in-demand services such as event planning, tutoring, personal training, home organising or pet sitting.

Online content creation

You could become a content creator on YouTube, TikTok or through blogging. You can monetise your content through sponsorships, brand partnerships or advertising.

Property development and management

You can build a property portfolio where you purchase, redevelop and sell properties for a profit. Alternatively, you could invest in rental properties and rent them out to tenants.

 

Benefits of a starting cleaning franchise

A cleaning franchise is an excellent option if you're considering becoming self-employed, and offers a safer, more secure option, compared to starting from scratch. Here are just a few reasons why a cleaning franchise is a great option for a self-employment business structure:

Established brand and reputation

Joining an established cleaning franchise means aligning yourself with a recognised brand that has already established its name and reputation in the market. This provides you with immediate credibility and trust among potential customers.

Proven business model

A huge advantage of a cleaning franchise is that the business model has already been tried and tested. The processes, systems and strategies have been refined over time, allowing you to benefit from that experience. This reduces the risk of starting a new business and increases your chances of success.

Training and support

Franchise companies like Jani-King typically provide training to ensure you have the skills and knowledge you need to run a successful cleaning franchise. They provide ongoing support, operational guidance, marketing support and access to a network of fellow franchisees.

Marketing

Marketing can be a challenge for any new business. Fortunately, with a cleaning franchise, you can utilise the marketing resources and strategies established by the franchisor. This can include access to various marketing materials, advertising and online presence.

Scalability and growth

Cleaning franchises often offer growth opportunities. As your cleaning business grows, you may be able to expand the geographical area you cover or extend your services to include specialised areas.

Business support and guidance

Being part of a cleaning franchise business gives you access to experienced professionals who can help you run your business. Franchisors are typically interested in your franchise's success and often provide ongoing business support, such as operational, financial and staff management advice.

 

What you need to know about becoming your own boss with a cleaning franchise.

Starting a profitable cleaning franchise and becoming your own boss is both exciting and rewarding. However, before becoming self-employed, there are some important factors to remember. Here's what you need to know:

Choosing the right franchise.

Look for cleaning franchises that have a proven track record, a strong brand reputation and offer comprehensive support. Choose a franchise that best aligns with your goals and values.

Initial investment

Ensure you understand the financial commitment of starting a cleaning franchise. This typically includes the initial franchise fee, equipment costs, marketing expenses and working capital.

Training and support

Choose a cleaning franchise offering comprehensive training to equip you with the necessary skills and knowledge. A good franchise will also offer ongoing support and operational guidance across all areas of the business.

Operational guidelines

Review the operational guidelines provided by the franchise. These include service standards, quality control measures, pricing structures and customer management protocols which you must follow.

Staffing and training

Consider whether you'll need to hire staff, and if so, develop effective recruitment processes and training so your employees can also deliver high-quality cleaning services.

Customer acquisition

Consider how you'll acquire new customers and keep them returning. This should include building relationships with potential customers, networking with local businesses, and utilising online platforms to showcase and promote your services.

Business expansion

To succeed in your cleaning franchise business, you must have a growth mindset. Consider the opportunities available for expansion and constantly assess market trends, adapt to industry changes and use customer feedback to refine your operations.

 

Get started with Jani King!

Now that you know how to become self-employed, it is time to find the perfect venture if you want to become your own boss, join Jani-King, one of the world's most successful cleaning franchises. With our proven business model, comprehensive support package and excellent track record, you'll be on the road to success. Contact us today and take the first step towards entrepreneurship.