How to make the transition from self-employed to employee easier

woman working on her fashion designs

So you’ve been your own boss for so long already, and now you want to become an employee again?

After enjoying the freedom of setting your own schedule and being the one calling the shots, going back to the 9-to-5 and reporting to someone else can be quite a big change.

So allow me to share some tips to help you make the switch from controlling your destiny to being part of a team again as seamlessly as possible.

Reacquaint yourself with the differences between self-employment and employment
  • Less flexibility but more stability

When you are the boss of yourself, you can set your hours and take leave (almost) anytime you want. But as an employee, you now have fixed work hours and a limited number of days off. The upside is you will have a steady income and (better) job security. No need to worry too much about when the next paycheck is coming.

  • No more “multitasking”

As self-employed, you’ve probably handled everything from sales to accounts and business development. Now you can focus on specific job roles and responsibilities. This means there’s no need to run across departments in a day until your brain is fried. Let the relevant departments handle their parts.

  • Following orders

So you used to make all the decisions? Not now anymore with bosses and company policies to follow. So it’s time to make the switch from speaking to listening and meet project deadlines set by superiors. But at least you no longer need to carry all the weight and pressure on your shoulders.

Preparing for the transition
  • Do a self-assessment

Sit down and think about what skills you’ve picked up as an entrepreneur. Things like problem-solving, time management, and handling pressure are attractive to employers. Recognize your strengths and how they can benefit your new company. This will boost your confidence in interviews and help you negotiate a good salary.

a woman having an interview

Image Credits: sng.ac.jp

  • Emphasize relevant experience

When job-hunting, focus on how your entrepreneurial experience will make you a better employee. For example, highlight how you independently built a business from scratch, innovated new products or services, won customers, managed finances, and hustled to overcome obstacles. These stories demonstrate a growth mindset, resilience, and leadership potential—qualities any boss would value.

  • Be open to change

The hardest part may be getting used to fixed work hours, less flexibility, and having a boss (again). But go in with an open mind. View your new role as an exciting opportunity to better yourself, without the stress of being solely responsible for a business.

Adjusting to the new role
  • Follow the schedule

Gone are the days when you could start work at 12 pm if you wanted. Most companies expect you to be at your desk during fixed hours, whatever the agreement is. Make sure you’re on time and take your breaks when scheduled. If you need to come in late or leave early, inform HR in advance.

  • Work with your team

Whether it’s your cubicle neighbor or a whole department, get used to collaborating. Communicate openly, share ideas, and help each other out. Having a good rapport with coworkers will make the daily grind more enjoyable.

  • Complete assignments by deadlines

As an employee, you will be given tasks, projects, or sales targets to finish by certain dates. Don’t drag it out—your colleagues and managers are depending on you. Try your best to meet all deadlines and let someone know ASAP if there are any issues.

After so long calling the shots for yourself, you now have to listen to someone else. But if you go in with the right mindset, open to learning new things and adapting to different working styles, you should be fine. Remember, be flexible, and focus on the work and not the politics. Your experience from so many years working alone will serve you well. This job may turn out to be better than you expect if you give it a proper chance. Take a deep breath and dive right in. The water will feel warm in no time.

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Benefits of Being Your Own Boss

Hearing complaints of having to be someone else’s servant or helping someone else become richer are just some of the common laments of Singaporean employees.

Many have aspired to transition from an employee to an employer. In a 2016 report, 3 in 4 Singaporean millennials wanted to become their own boss. Becoming your own boss comes with risks and hard work, but the potential for rewards is huge.

Running your own business offers many benefits such as these:

#1: YOU GAIN ABILITY TO FOLLOW YOUR PASSIONS

Following their passions acts as a catalyst for many budding entrepreneurs. For example, my friend left his advertising job to pursue his love for serving gourmet burgers.

Reaching for your dreams may fulfil you in a manner that working for someone else may not. As an entrepreneur, you oversee creating the business from scratch. Furthermore, this business can be passed down to your children.

#2: YOU CONTROL YOUR OWN SCHEDULE

Across the globe, employees have spent the last few years in isolation. Employees and employers observed the advantages and disadvantages of working from home. It is an eye-opening experience to feel how flexible working from home can be.

As an entrepreneur, you schedule your own hours. Your schedule is not dictated by your supervisor or other people. You still must get work done, but nobody is looking over your shoulder to ensure that you complete the daily tasks.

#3: YOU GET FREEDOM TO START FROM SCRATCH

This is your own business, and you make the rules. Use your creative juices to set the standards and procedures for your organization. Perhaps, you want to offer a product or a service that fits your vision.

Whether you want to leverage modern technology or provide your employees with wellness breaks, you have the freedom to decide.

#4: YOU WILL BECOME AN EXPERT IN DIFFERENT THINGS

Entrepreneurs often wear different hats. At first, you will need to pick up a lot of new skills such as human resource management and social media marketing. Soon, you will become an expert in your own field.

Image Credits: pixabay.com

As your business grows, you will continue to learn new knowledge and skills. Who knows? You may even start another business!

Sources: 1 & 2

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Make your time count: Three tips for managing freelance finances

The on-demand economy is booming, driven by ride-sharing, peer-to-peer rental, project-based job platforms and the ease of e-commerce. There are unprecedented income opportunities for freelancers but this work comes with a host of new challenges – many of which are all too familiar for me and my family – like co-mingled and confusing business expenses, quarterly and year-end tax headaches, and a general lack of visibility into your ‘real income’.

My brother and uncle are entrepreneurs, and I’ve seen how they have setup their businesses starting at day one. Having the ability to track earnings, expenses, and taxes automatically are keys to success and always top of mind. Getting better insights into their financials, including net income and tax obligations throughout the year is also increasingly important.

For those who are considering hitting out on their own this year, or the increasingly popular ‘side hustle’, here are my three tips to maximize your financial success.

1)    Don’t mix business and personal. I know firsthand the temptation of co-mingling your personal and business finances, whether it’s using your personal credit card for your freelance expenses or keeping your finances together in one bank account, but there are important legal, tax and financial reasons for keeping your finances separate. Self-employed workers often struggle to keep track of their finances without the luxury of an employer helping them manage tax or CPF contributions, and many have no visibility into their real earnings and income. Separating your finances will help you keep a closer pulse on the health of your business and prevent any unpleasant surprises when you find out how much you owe come tax time. 

2)   Ditch the shoebox. Our research shows that a large number of self-employed and freelancers are keeping track of their finances on paper and a fair proportion of on-demand economy professionals say that difficulty managing finances has the biggest potential to put them out of business. This is deeply concerning to me and points to a major financial literacy gap among this demographic. Part of feeling confident about your freelance business and its future is understanding the more in-depth financial aspects. Using cloud financial management software to track expenses, mileage and invoices all in one place can help you find more tax deductions and save thousands in taxes.

3)    Don’t be afraid to ask for help. Just because you’re self-employed, doesn’t mean that you’re on your own. Working with an accounting professional can help you create the building blocks for your financial future and make sure you’re not missing out on deductions. Building a close relationship with someone you trust early on can foster a value-added relationship, where they aren’t just doing your bookkeeping but giving you strategic insights on how you can set yourself up for long-term success. Whether you’re working towards quitting your day job to freelance fulltime, expanding your client base, or achieving profitability, if you’re direct about your goals and open to guidance, a strategic advisor can be a critical resource to help you realize them.

As someone from a family of entrepreneurs and someone who has spent the greater part of my career working to advance entrepreneurship, I’m thrilled to see a growing number of people taking control of their own future and leveraging the technology available to them to shape their careers and support their families. If you’re one of the many Singaporeans who will enter this economy in 2017, be bold; be diligent; be well-organized. You’ve got this.

Shirin Anne Wan Bio

Intuit - Shirin 01

Shirin Anne Wan is the Head of Customer Care for QuickBooks Asia Pacific, with more than 15 years of experience in customer service, customer care, operations and service excellence. Based in Singapore, Shirin has served in her role with Intuit as member of the APAC leadership team since 2013. Previously, she worked for Citi in customer experience management.

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Should I be an employee, a self-employed or an employer?

Many people aspire to be an employer as it entails freedom, independence and wealth. However, the path to entrepreneurship is hardly a bed of roses. In fact, a successful entrepreneur has to possess great fortitude and foresight in order to overcome all the uninvited obstacles coming his/her way. On the contrary, while employees generally do not enjoy as much flexibility as the company owners, they actually face significantly lower (downside) income risks. In addition, employees are often relieved of the heavy emotional and psychological burden that is tied to the complexity of overall business management.

Therefore, whether you are an employee, a self-employed or an employer, there are always pros and cons for any track you choose. At the end of the day, it boils down to what truly defines you and the resources you wield. The approach to searching for your personal identity (and supposed employment status) has thus been highly condensed into the diagram shown below.  

Click to enlarge:

employerDisclaimer: This is just for easy reference.

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5 Benefits of Freelancing

Sometimes, stepping out of the cubicle to be a self-determining entrepreneur or a freelance worker gives you the opportunity to find yourself. It may also bring more money in the bank. Nonetheless, it will give you freedom and other self-benefiting outcomes.

Here are the 5 Benefits of Freelancing…

1. DOING WHAT YOU LOVE

As Confucius once said, “if you enjoy what you do, you’ll never work another day in your life”. It is a sad truth that many people drag themselves to work to do something they are not fond of just to get enough money to survive.

If you give yourself an opportunity to freelance or by being your own boss, you will be able to do the things you love and get paid for it.

2. FREEDOM TO CHOOSE YOUR OWN WORK ENVIRONMENT

Image Credits: Lisa Risager via Flickr

Image Credits: Lisa Risager via Flickr

Since you are your own boss, you will be able to choose the most comfortable working condition for you. Redecorate your home office—the sky is the limit. With this power of autonomy, you will notice that little things you do can make a huge difference.

3. FREEDOM OF CREATIVITY

Often, people get into freelance to fulfill their dreams of creative freedom. As a freelancer you will be able to choose what direction you will take without a rude boss over-looking your shoulders.

You are the master of your own future. Mold the present by choosing which projects to engage in.

4. SET YOUR OWN WORK HOURS

Being able to have a flexible timetable gives you the opportunity to do more of what you love. There may be days where you want to work more and there may be days where you feel sick. Have an expected number of hours of work to ensure that time is managed and work is done even if there is no fix structure.

Setting your own hours can mean that you get to drive your children to school, you can go out for private errands during lunch, and you won’t miss out on your children’s school presentations. Yes! You will be able to spend more quality time with your family.

5. PLAN YOUR VACATIONS AHEAD

Many people struggle to have their vacations synced. But, when you freelance, you can plan your vacations ahead and fit your schedule with your family. By planning your vacations ahead, you not only pay for a cheaper air fare but you also won’t miss a work deadline.

Image Credits: Kamal Zharif Kamaludin via Flickr

Image Credits: Kamal Zharif Kamaludin via Flickr

Simply, by being purposeful freelancer, you will be able to wake up motivated and ready to start the day’s work.

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