How you avoid getting into debt when you become self employed
Getting into debt is very likely especially when you are self-employed. Most people who are self-employed tend to start up small businesses. Most of the self-employed don’t have capital to start these businesses and they therefore go for loans. The problem arises when the business fails to have a good Return of Investment (ROI).
Also, taxes are another major factor especially to the self-employed. Taxes can easily drive people to debt.
To avoid this, one can estimate their income for the year. It is however difficult to do this especially for newly owned businesses. This is because most of these businesses are not very stable and therefore don’t bring in a stable income. However, it is advised that people who are self-employed should estimate their income for the year to avoid over-spending which may lead to loans and in turn, debts. People use previous year’s income for businesses that have run for long periods.
On the issue of taxes, People who are self-employed are advised to estimate and set-aside the amount of taxes that people who are self-employed are required to pay. For example, the taxes may add up to 30 or 40% of the total income the business may earn. A self-employed person may therefore be advised to put aside 40% of their total income to be on the safe side.
With a small business, there must be business expenses and deductibles. They include meals, entertainment, gifts and others. It is therefore advisable that small business owners estimate their deductions in a financial year. This will help greatly since the issue of over-spending will be avoided also in this case. This also helps business owners to make estimations to balance maximum profits with minimal expenses.
Self-employed are also advised to make estimated payments on deductions and most of all taxes. This helps the small business owner to determine if the business is at a profit or loss. This also greatly helps to minimize on taking up loans.
You can make money by selling your knitting online. Here’s how
Once a skill that was taught in every school across the land, but now rapidly disappearing, you could be forgiven for thinking that knitting is a dying art. Whilst cheap clothes can be readily bought on the high street, there is still a surprisingly high demand for hand knitted garments. These range from the essential baby knits of cardigans and hats, right through to fancy jumpers and scarves that have been seen on the fashion catwalks for the last few years. If you can knit, then you could turn your hobby into cash, simply and quickly.
There are an increasing number of specialist craft and handmade market place websites popping up, where knitted goods are in demand. Specialising in whatever you like to make and producing a wide range of items is the best way of selling your knitting. If you like knitting baby items, several different cardigans in a variety of colours and sizes would work well. Cardigans are always useful for baby layers, and most parents have a small selection to hand. Baby blankets and hats are another staple item that come in handy. Knitted toys are another popular item, particularly for those who are after something unusual.
Many knitters are turning to the increasingly popular vintage market to sell their knitting. A growing sector, knitted clothes in vintage styles are often sought after, as are knitted accessories such as brooches and homewares. That brightly coloured knitted tea cosy you used to hide from your friends could be worth more than you imagined! Look out for specialist vintage market place websites, or online emporiums after suppliers. You could approach e-shops about selling your knitting too.
Knitted goods, whether vintage or contemporary, are increasingly sought after as people want handcrafted items that are unique. There is also a lot of people who appreciate the skill required to produce a hand knitted item but who don’t have the ability or time to produce such items themselves.