20 Steps to Self-Employment

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Self-Employment
20 Steps
to

• www.chinahourly.com

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• How to Work for Yourself
• By www.chinahourly.comIf you've been laid off
  into the dismal job market, working for yourself
  may be the best path out of the unemployment
  line. But the idea of self-employment can also be
  daunting if you're used to a corporate job. Where
  will you find health care? Can you deduct home
  office expenses on your taxes? How much should
  you charge for your work? We break it down here
  with 20 steps to get you from unemployed to
  self-employed, with links to in-depth articles on
  each step.

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• Step 1 Vet Your Idea
• By www.chinahourly.comYou may be able to do the
  same thing you did in your old job on a freelance
  basisWeb designers or accountants, for example,
  can shift from working for a single employer to
  serving many clients. But some professionals will
  need to find new ways to market their job skills
  in the open market. Make sure you offer something
  clients need.

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• Step 2 Get Motivated
• By www.chinahourly.comFor those who have
  recently suffered the trauma of losing a job, the
  biggest challenge of self-employment can be
  getting motivated to work without the structure
  of a regular workplace. Build routines into your
  day to keep yourself on track, meet others for
  coffee to stave off isolation, and start thinking
  of yourself as a business owner, not an employee.

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• Step 3 Prepare a Business Plan
• By www.chinahourly.comEven if you dont need a
  formal business plan with benchmarks for growth,
  you do need to know how much cash you have to
  bring in to cover expenses. Write this down and
  be realistic about what you need to earn to make
  self-employment sustainable.

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• Step 4 Create a Workspace
• By www.chinahourly.com Whether its a corner of
  your studio apartment, a basement office, or a
  local coffee shop, find a place where you can
  work effectively. Consider attending co-working
  events to meet other independent workers.

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• Step 5 Choose a Legal Structure
• By www.chinahourly.comMany freelancers work as
  sole proprietors, a default that saves you from
  having to form a separate entity. But those who
  need to limit their personal liability may want
  to form limited liability companies or
  S-corporations.

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• Step 6 Pick a Name
• By www.chinahourly.comNot every freelance
  business needs a name distinct from its owner.
  But choosing a name can help you define your
  business and let others know that you're serious
  about it.

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• Step 7 Get Health Insurance
• By www.chinahourly.comThe insurance system
  isn't friendly to independent workers, but there
  are options to get covered. If you cant get
  insurance through a spouses plan, consider
  freelancers insurance, COBRA, or seeing if local
  business groups offer plans for sole proprietors.
  Even if you buy a high-deductible "catastrophic"
  health plan, you can avoid having a gap in
  coverage that could haunt you if insurers later
  deny coverage for a pre-existing condition.

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• Step 8 Set Prices
• By www.chinahourly.comDetermine what value your
  services will bring to clients, and set your
  rates accordingly.

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• Step 9 Get Online
• By www.chinahourly.comMost freelancers will
  want some kind of Web presence, even if its just
  a professional profile on LinkedIn. Make sure
  people looking for you can reach you.

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• Step 10 Get Business Cards
• By www.chinahourly.comYes, you need them, and
  not the leftover ones from your old job. Invest
  in professionally printed business cards that
  show you're serious about your business, or get a
  creative design if it suits your business.

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• Step 11 Build Your Network
• By www.chinahourly.comWithout the resources of
  a company behind you, your freelance success will
  hinge on the strength of your network. The
  connections that will help you thrive as a
  freelancer may be different than those you needed
  corporate life. Meeting with contacts informally
  will also keep you sane and break the monotony of
  working alone.

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• Step 12 Choose a Credit Card and Bank
• By www.chinahourly.comSeparate your business
  finances from your personal finances with
  dedicated credit-card and bank accounts that you
  use for work alone. This will help you keep track
  of business expenses you want to write off.

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• Step 13 Secure Financing
• By www.chinahourly.comMany freelancers will be
  able to bootstrap without outside funding. But if
  you need to invest in equipment or other
  necessary expenses, you can look for loans or
  credit lines from banks, microlenders,
  peer-to-peer loan sites, or loans from friends
  and family.

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• Step 14 Sell Your Service
• By www.chinahourly.comWhether or not you were
  in sales before, you are now. Expect to spend as
  much time selling your services as you do
  actually practicing them, especially early on.

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• Step 15 Get Paid
• By www.chinahourly.comMake invoices, bill your
  clients promptly, and be diligent about
  collecting payments. Be prepared to follow up on
  invoices to get paid, and factor the time you
  spend tracking down payments into your pricing.

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• Step 16 Track Your Finances
• By www.chinahourly.comConsult an accountant and
  set up an system to track your revenue and
  expenses. You can find free or cheap software
  online.

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• Step 17 Pay Taxes
• By www.chinahourly.comPrepare to make estimated
  tax payments to the IRS four times a year, and
  set the money aside in a separate account.
  Remember that you have to pay the employer's
  contribution to Social Security as well. Talk to
  an accountant about what , like the deduction for
  a home office.

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• Step 18 Build Your Brand
• By www.chinahourly.comUnderstand what
  distinguishes your work, and create a brand that
  communicates that to others. As a freelancer,
  everything you do reflects on your personal brand.

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• Step 19 Use Outsourcing Sites
• By www.chinahourly.comList your services on
  freelance marketplaces like Elance, Guru.com, and
  GetAFreelancer.com so clients looking for an
  extra set of hands can find you.

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• Step 20 Look Ahead
• By www.chinahourly.com Whether you want to
  parlay freelance work into a full-time job,
  expand your venture and hire employees, or just
  sustain your self-employed lifestyle, know where
  your business is going and make a plan to get it
  there.

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