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PrivateBusiness

Starting a business

Entrepreneurship enables flexibility and self-realisation

If a 9 to 5 is not rewarding and flexible enough, you might want to consider harnessing your knowledge and skills as an entrepreneur.

  • At first, you can do so while still keeping a day job.
  • You can also turn your hobby into a business.

Starting a business

There are many ways to become an entrepreneur; you can offer various products and services (selling handicraft or preserves, offering cleaning or repair works, providing a childcare service, etc.) or operate as a freelancer in intellectual or creative fields (photography, design, paining-drawing-writing). You can also find additional work through modern sharing service solutions, such as Airbnb, Uber and Autolevi.

Here are the most important aspects to consider before quitting your day job and becoming an entrepreneur.

It all starts with an amazing idea; however, it is reasonable to start an independent business with your own resources: your skills, experience and contacts are valuable. As a specialist in your field, consider selling your skills as an entrepreneur. This will allow you to choose clients, working hours and your pay. It is easy to create a private limited company in Estonia; it can be done quickly and conveniently online. If your future field of activity does not require capital expenditures, you can start your company without share capital. However, ensuring a sufficient turnover might take some time and you need to keep yourself on top of your finances even as you start. Collect a few months’ worth of financial buffer to cover living expenses and costs of starting a business. If you have decided to start a business, compile a precise business plan. For this, analyse the market and competition, describe the offered service and your benefits, map potential customers and channels to reach them, forecast expected sources of income and expenses and set a desirable goal. This will frame your activities and provide a specific aim to work towards. Being your own boss means dealing with accounting; learning the basics of reporting and tax obligations might seem quite the challenge at first. As a wage earner, your social and income tax are paid by your employer; however, as an entrepreneur, these are your responsibility. When offering services, cooperation should be based on agreements specifying the rights and obligations of both parties. This provides peace of mind that you will receive what you have ordered or, if not, ensure certain rights based on the contract. Make sure the contract specifies the content of the work ordered and service provided, time needed for its implementation, form and place of delivery as well as pay. Starting a business is time consuming and often done in the expense of your time off. Make sure not to overwhelm yourself or you will not have energy to keep going. To prevent burnout, take time to work as well as rest and spend time with your friends and family.

More on how to start a business and earn extra money

Learn from the experience of others

A small entrepreneur: How to save time on side works and focus on expanding your business?

Get practical and valuable tips on saving from the financial wisdom Facebook group #Kogumispäevik and Instagram account @Kogumispäevik.

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