When starting entrepreneur-like activity, you often need to launch, learn, and remember quite a few things. For more than a decade now, our customer service has answered hundreds of questions, how to price your work profitably, how to invoice abroad, or how to market yourself successfully. Behind the questions, there is often a genuine concern; can I make this work by myself, what if an accident occurs, are my abilities enough to employ me. However, there are more occasions when we have been able to walk alongside and watch as countless entrepreneurs have successfully started their journeys, one invoice at a time.
Throughout the years, one thing has become crystal clear for us: the more you know about the responsibilities and options regarding self-employment, the faster and easier it will be for you to focus on the essential: working. All things should not be learned alone and the hard way, and that’s what we are here to ensure.
We have gathered a handy list for start-up light entrepreneurs that you can use to check which things you need to consider in the beginning. All points may not necessarily relate to your situation directly now but it’s often very relieving to be able to get some things out of your mind.
Pricing & written work agreement
Price your work from the beginning profitably and always make a written agreement on the work. You won’t regret this, but you will regret if you don’t take care of this.
Liability insurance and accident insurance
Even as a light entrepreneur, you will need a proper insurance and for example, when registering at Eezy, they will be taken care of automatically.
Invoicing your work, payment notices, and debt collection
Take notice of the most common payment terms, VAT-rates, and invoicing expenses from the client. Creating an invoice is simple, as long as the basics are covered. If your invoice isn’t paid on time, payment notifications and debt collection are two things you want to let a third party handle. With Eezy, they are all included in the service fee.
Invoice expenses from your client if possible, that way they can be compensated for you tax-free during salary payment. This gives you direct monetary benefit which could increase your motivation.
Your salary is always tax-deductible, and you should submit your tax card to your invoicing service before your first salary payment. Without a tax card, a 60% withholding tax will be withheld, and this will only please the tax office
When the client pays the invoice, your salary is calculated from that amount. Also, a service fee and statutory fees applicable to invoicing services will be deducted from the salary, and you won’t have to worry about them
Sometimes you may need money before your client has paid the invoice. Through Eezy, even this is possible for an additional cost. EezyExpress is the most convenient way to receive your salary on your account immediately.
Be aware of your unemployment benefit. According to unemployment benefit, work conducted as a light entrepreneur is classified as entrepreneurial activity that does not accrue to an employee’s employment condition in terms of unemployment insurance. Unemployment benefit is affected by whether the work conducted through an invoicing service is the main source of income or secondary. Secondary income as an entrepreneur will not prevent the payment of unemployment benefit, however, the income from the entrepreneurial activity is taken into account when considering the amount.
You should stay on top of your income because YEL insurance is mandatory for a light entrepreneur after their annual income exceeds 7 799,37 € (minimum in 2019). You can take care of YEL through Eezy as well.
Marketing your work
If you have trouble finding enough clients in the beginning, you should market your work and think what the most cost-efficient way would be to reach all your potential clients. Social media marketing is still quite efficient, and you don’t need to be an online-wizard to get started.
If your field of work tends to be tricky and often results in difficult situations, you may need some legal advice. Legal services can be quite expensive, but for example, through Eezy, you can receive general advice even free of charge and in-depth consultation at cheaper rates.
If your line of work demands a workspace, either permanently or occasionally, you may want to consider investing into your own premises or utilizing for example co-working spaces, or even libraries.
There are plenty of free or inexpensive trainings online about different topics that you may want to take advantage of to develop your own work. Different breakfast events are also a great way to network with potential clients as well as with new partners. In questions regarding light entrepreneurship, Eezy users will receive personal guidance and advice via phone, e-mail, or even by booking an appointment. Also, free of charge webinars are included in the service.
You think you got this and ready to go? Or still wondering about something?
We are organizing an open webinar called Kevytyrittäjän pikastartti Nov. 12th between 1-2pm where we will go through the list more in-depth and also provide great tips in getting started with your work. You are warmly welcome to join us, whether you’re a registered Eezy user or merely considering becoming a light entrepreneur. You can also watch it later on Extranet.