Penelope Ling is an award-winning solution-focused hypnotherapist specializing in phobias. She founded Penelope Ling Hypnotherapy and is the author of the book Driving me crazy – overcome the fear of driving. She regularly contributes to magazines like Happiful and guests on podcasts and BBC local radio.
I have become self-employed twice in my life. I aspired to be a web designer in the late 90s, but ultimately pursued therapy in the 2000s. It was easier the second time because I had learned so much. Especially around failure. Over the years, I have supervised many therapists and coached clients who were ripe to jump ship. And these 11 points were the most common areas where they failed. I hope with this article to get you thinking of the wider picture, not just about what you will do as self-employed.
Do your research first
It will amaze you how many people fail to research if their business fits into the local picture. If you’re countrywide and work online, you will need a different focus to someone setting themselves up to work locally. Are you suitable for the area’s demographic? Has anyone heard of your profession? I have shared clinic space with a whole range of therapists trying to focus on their agenda, but in the end the locals were too old, too young, or too conservative or too diverse to be attracted towards their brand of therapy. For example, when I first started out as a therapist, I worked from home in a small town and from a clinic in a larger town close to the motorway. I rarely saw people at home, but the evening sessions in the clinic by the motorway saw clients travelling miles to get to see me. Location was very important.
Financial instability
One of the biggest fears when going self-employed is the financial instability it can bring. Unlike traditional employment, where employers often provide a steady income, self-employment income can vary. This uncertainty can make it challenging to cover living expenses or make long-term financial plans. Without a safety net, such as savings or a secondary source of income, the financial risks may seem too high to take the plunge. Those I have seen make successes of their career are those whose partners have a steady income.
Cash flow
Before I became a therapist, I worked as a graphic designer. At one point I went self-employed, but it didn’t last very long. The reason being cash flow. When your job is building websites, some of these can take months to bring together and build, then waiting to be paid. It wasn’t easy when you had regular bills, so I went back to work full time and carried on with the part-time hustle. When I trained as a therapist, this meant that payment was after each session and therefore cash flow became much easier to manage. Now, when I supervise other therapists or coach employees who want to go solo, these are the points I raise with them to help get their business up and running smoothly.
Side hustle
After I passed my diploma to become a therapist, I worked part time and all the money I made went into marketing. When redundancy forced me to become full time self-employed, I had already established a sufficient client base to sustain the business on a monthly basis. With proper financial planning, budgeting, and a clear understanding of costs, it is possible to minimise the risks of financial instability whilst self-employed.
Lack of a clear business plan
Without a simple business plan, the idea of becoming self-employed can seem chaotic and unrealistic. A business plan outlines your goals, target market, services, and financial projections, giving structure to your venture. Without it, self-employed individuals may struggle to define their niche or set achievable milestones. A plan serves as a roadmap, helping to guide decisions and measure progress, which is crucial for long-term sustainability. It also helps in attracting investors or securing loans, as it shows a well-thought-out approach. However, many aspiring, self-employed individuals feel overwhelmed by the process of writing a detailed business plan. Developing a clear, adaptable business strategy is essential for minimising risks and increasing the chances of success when going self-employed. If in doubt, network, use business angels, ask other self-employed friends’ of their experiences. Seek a mentor and inquire about their business planning approach. Also consider the possibility of moving. I was 5 years into my self-employed business when a family death meant we had to move and I had to start my business all over again. Consider the problems you might face in the next 5 to 10 years?
Limited access to funding
Access to funding can be a significant barrier to becoming self-employed. Many new businesses require start-up capital for things like equipment, marketing, or renting office space, or therapists’ clinic rooms. Without personal savings or external investment, aspiring entrepreneurs might find it difficult to cover these costs. Banks and other lenders are often cautious about providing loans to self-employed individuals without a proven track record or a solid business plan. Be aware that once you are running your business and then you need to move house. For example, mortgage lenders are very cautious about giving out new mortgages, especially if you’ve only been running the business a short time.
Health benefits, pensions and insurance
For many, leaving behind employer-provided benefits is one of the most significant downsides of going self-employed. Self-employed individuals may need to purchase private health insurance, which can be expensive and come with fewer benefits. You miss out on other benefits like pension contributions, paid sick leave, or holiday pay. This added expense and responsibility can make self-employment seem less attractive. Often supervisees I have coached have given me figures where they will see a certain number of clients a week to pay the bills, but completely forget that they need to estimate 10 months of work and 2 months as sickness, holiday and quiet times. Putting money into a savings account for tax, pensions, sickness and holidays is a must.
Tax complexities and accounts packages
Taxation is one of the more intimidating aspects of going self-employed. Self-employed individuals must take care of their tax responsibilities or hire someone to do so, unlike salaried workers who have their taxes automatically paid. There is also the question of being a sole trader, a partner, or a limited company. Navigating this new tax landscape can be confusing, especially for those unfamiliar with bookkeeping or accounting practices. Investigate the correct accounting software. My setup, as a therapist, is very simple. Money in and expenses out. If you’re purchasing and selling goods and earn over a set amount, then VAT adds another level of problems to look out for. Many self-employed individuals also struggle with understanding allowable business expenses or preparing for potential audits. However, with proper tax planning and possibly working with an accountant, these complexities can be simplified.
Work-life balance concerns for self employment
Balancing work and personal life can become more difficult when self-employed. Without a fixed work schedule, it’s easy for work to spill over into evenings, weekends, and personal time. Know your boundaries. The pressure to succeed as a self-employed individual often leads to long hours and tempts one to always be “on,” whether it’s answering emails late at night or handling client requests on weekends. Over time, this can lead to burnout or strain relationships with family and friends. However, setting boundaries and managing time effectively can help maintain a healthy work-life balance. While being self-employed offers flexibility, it also requires discipline to avoid overworking and to make time for personal well-being. You also need to work out when you’re most likely to meet or connect with your clients. New therapists often struggle to find clients during school hours when they plan to work. Many people won’t give up their working and school hours to visit therapists. When I was at my busiest, I worked 2pm to 9pm. The afternoon were my elderly clients and the self-employed. Between 4pm and 6pm children and after 6pm employed adults. The success of my business right at the start was my availability and flexibility of hours. When lock-down happened and I went online, it proved the most helpful opportunity to work my chosen hours and expand my client potential worldwide.
Lack of business skills
Not everyone feels equipped with the business skills necessary to succeed as a self-employed individual. I call it hat wearing. Today I’m wearing my marketing hat, or tomorrow I will wear my accountancy hat. Many entrepreneurs are experts in their field but may lack experience in areas like software and technology, marketing, accounting, or managing employees. These skills are essential for running a successful business, and the absence of them can make self-employment seem daunting. For example, a freelancer may be great at their craft but struggle with pricing their services. New self-employed individuals can learn or outsource these skills, and there are many resources available to help fill in the gaps. Overcoming the fear of lacking business knowledge is crucial to thriving while self-employed. I was lucky in that I had worked in IT, advertising and marketing, so it was much quicker to get the business running smoothly. I now hold marketing days and have written a marketing course for therapists. You could also try in the UK the Federation of Small Businesses – they can be very helpful for support and training. Many nations possess their own version of this invaluable resource.
No existing customer base
Building a customer base from scratch can be a daunting challenge for self-employed individuals. Unlike established businesses, where clients and customers are already in place, new entrepreneurs must work hard to attract and keep customers. This often requires effective marketing, networking, and word-of-mouth referrals, which can take time to build. For those transitioning from a steady job with an existing clientele, starting over can seem overwhelming. The fear of not being able to generate enough business to sustain oneself financially can stop many from going self-employed. However, by focusing on marketing strategies, offering value, and nurturing relationships, building a strong customer base is possible for self-employed professionals. Connect with other professionals to do talks. Engage with local media for increased visibility. Ask your clients for testimonials or offer discounts for referrals. Get help marketing and find a good website builder and SEO provider.
Fear of isolation and loneliness
The fear of isolation can deter many from becoming self-employed, as working alone can feel lonely compared to the social atmosphere of a traditional workplace. For some, the camaraderie of colleagues, team collaboration, and daily social interactions are essential to job satisfaction. When working as a self-employed individual, one may often work independently, which can lead to feelings of loneliness or disconnection. This happened to me during my full-time transition. I missed the social interactions. Being a solution-focused therapist, I did three things.
Attend networking lunches and view other networkers as colleagues.
Enrol in art classes.
Find shareable office spaces where I could base myself to perform the marketing aspect of my business.
Fear of failure
The fear of failure can be a major mental barrier to becoming self-employed. Many worry about what will happen if their business doesn’t succeed, leading to financial loss or damaged reputation. Feeling this fear is natural because entrepreneurship involves uncertainties. Self-employed individuals often take on all the responsibility for success or failure, which can feel overwhelming. Doubts about skills, market demand, or competition may amplify the anxiety. So do your research. I have met many therapists over the years who are passionate about the therapy they provide. However, if demand is low because of no-one having heard about it, or, like hypnotherapy, getting the wrong idea about it, then you’ll have to work doubly hard to get your message across. But it’s important to remember that failure is part of the learning process and that many successful self-employed entrepreneurs have faced setbacks before finding success. Overcoming the fear of failure can unlock new opportunities and personal growth for those who decide to become self-employed, which is where hypnotherapy can come in. Being relaxed and focused means it’s easier to plan and make choices, instead of reacting to situations and always firefighting.
I have been in a very honoured position in recognising and helping individuals to transition from employment to self-employed. Helping them research, build their confidence, giving them a clear focus on how to pursue their dreams. If you’re unhappy with work and want to clear your head around all the negative thoughts, then solution-focused hypnotherapy is ideal. It helps to break down the process into doable sections, allowing a person to get a clear vision of how they want their future to be. Please reach out to me Penelope Ling at my website to find out how I can help you transition to self-employment.
Penelope Ling, Solution-focused Hypnotherapist
Penelope Ling BA is a solution-focused hypnotherapist and author. She became a specialist in phobias having many as a child and a fear of driving as an adult, which left her unable to drive for 13 years. Having conquered those fears during training, the decision to help others overcome their limitations was simple. She helps her clients overcome their fears, and phobias achieving a more fulfilling anxiety-free life.
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