Assess your suitability to be self employed
While most people choose to go into self employment for a variety of reasons, the major reason should be that you have, or are capable of providing, a product or service that fills a need in the market place.
In assessing your suitability to be self employed you should consider both the advantages and disadvantages of this form of employment.
Commonly perceived advantages include:
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being your own boss (and of others, if you decide to employ people) and the key decision maker
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the ability to implement your own ideas
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the opportunity to be involved in all aspects of the business, and to work directly with all your customers/clients
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being employed in an occupation or specialisation of your choice
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developing the business into an asset which secures your financial future.
Common disadvantages are:
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the level of financial risk involved
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long working hours and limited opportunity to have time off until the business is well established
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the requirement to work on all aspects of the business, not just the parts that you enjoy. This might include having to fire or discipline your staff
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the likelihood that your income level will fluctuate until the business is well established and operating profitably
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working in isolation, or with little support from others, which in turn might lead to periods of self doubt and also anxiety when making important decisions about the business
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the need to become competent in a range of skills associated with running the business, for example in financial management, record keeping and administration, marketing and public relations, stock control etc.
Business.gov.au has more information about the issues to consider when starting a business.