| Attorney at Law | ||
703.821.5522 |
 |
e-mail: mlucas@cs.net |
|
|
|
|
|
|
|
|
|
|
| My
Very Important Papers
|
| Virginia
Courthouses
|
|
|
Never search for important documents again. My VIP Book is easy to maintain and update. |
|
| Ten Traps of the self-employed | ||
| 1. | No business plan – This is probably the biggest trap with the most far- reaching results. | |
| 2. | Unwilling to change | |
-The initial plan may have been good, but the market wants something slightly different. There are times to review the business plan and try new things. -There is a time to take risks for expansion or diversification. Sometimes those two birds in the bush will be more profitable than the one in your hand.
|
||
| 3. | Not establishing a name | |
Name recognition or branding is important. The quality of the “name” is even more important. You must establish yourself as honest, reliable, and dependable.
|
||
| 4. | Becoming too dependent on one source of business, particularly for consultants. | |
| – Once a business finds a good client it is often easy to slow on the marketing efforts. A business needs more than one client or resource base. Disputes and ownership changes can produce disastrous results when there is only ONE income source. | ||
| 5. | Under pricing yourself. | |
a. Check your competitors. b. Let the customer set the price. c. Use a formula to calculate the price: - Establish the annual income you wish. - Establish billable hours each year. ( 20%-50% less than you work.) - Add costs - Divide total of income plus costs by the number of billable hours.
|
||
| 6. | Having nothing at the end of the career that can be passed on – If you are constantly pouring all your resources back into your “growing” business, you may find yourself empty handed at retirement. A ten percent savings/self payment is a must for owners. | |
| 7. | Becoming a slave to the business – The owner never seems to go home, especially if your home is your place of business. The adage, “The work will fill the time allotted is true.” The self-employed must set some limits. | |
| 8. | Having no protection if you cannot work – The long hours of the self-employed can destroy health. Who takes over when the owner is ill? Every self-employed person must plan for absences. In our school systems the teacher is required to file an emergency lesson plan. If there is an unexpected emergency, the plan is used. | |
| 9. | Business liabilities reducing personal assets – You can easily deplete your savings to overcome one crisis after another. There must be limits to “sinking” money into your business. | |
| 10. | Suffering from isolation – Self-motivation is a must for self-employed. Some people need the interaction of others to maintain a healthy attitude. Networking groups, Chambers of Commerce, and Associations are excellent sources of information and socialization. | |
| Home | Attorney Background | Contents | Contact Us | |||||
| My VIP Book | Virginia Courthouses |