Considering starting your own business?

Many IDA members consider taking the leap and starting their own business. For some, it is about freedom and flexibility. For others, it is about testing an idea, working as a consultant, or building something from the ground up.

Regardless of your motivation, there are a number of important considerations worth making before putting a CVR number on your business card.

Whether you want to work as an independent consultant or build a product as an entrepreneur, you should create structure, maintain an overview, and ensure financial security for yourself.

From expertise to business

Many self-employed professionals and entrepreneurs have a strong professional profile. However, unlike when you were employed, you now have to run a business.

As an independent consultant, this means deciding how to acquire clients and being clear about what you can offer them as a consultant.

If you have a business idea, it is also important to carry out a thorough validation, to ensure that your product solves a real problem and that people are willing to buy it.

Learn more about how to get clients

Learn more about how to validate your business idea 

Contracts and agreements: Get the framework in place

When you run a business, your agreements with clients and business partners are essential. This applies whether you work as a consultant, subcontractor, or develop your own products.

A clear and well-prepared contract can prevent many conflicts. Among other things, it is important to clearly describe the assignment, fees, payment terms, intellectual property rights, and liability.

Liability is particularly important: you may face a compensation claim if something goes wrong, which is why you should always consider limitations of liability, both in the contract and in relation to insurance.

Make sure the contract is fully agreed before you start working for the client. If you are starting a business with others, a shareholders’ agreement is also a good idea.

Learn more about consultancy and collaboration agreements

How do you secure your financial situation?

Pricing is one of the most challenging disciplines for many independent consultants. When setting your fee, you should take into account that, as a self-employed professional, you are responsible for paying for holidays, sick leave, pension contributions, insurance, and periods without assignments.

As a general guideline, your fee could be set at 2.5 times the average hourly wage of a person with your educational background and level of experience.

If you are an entrepreneur with a longer timeline before your product reaches the market, you should make a plan for how to finance both your personal finances and your business finances until you begin generating revenue.

Learn more about how to find your fee level

Learn more about how to finance your business

Security if something goes wrong

As a self-employed professional or entrepreneur, you are more on your own if things do not go as planned. If you fall ill, lose a major client, or experience delays in developing your product, the financial impact can quickly become noticeable.

That is why it is important to familiarise yourself with the rules regarding sickness benefits and unemployment benefits through your unemployment insurance fund, preferably before the need arises.

The rules can be complex, and your options depend, among other things, on how your business is organised.

Insurance also plays an important role. For many self-employed professionals, professional indemnity insurance is essential because it can provide cover if a client files a claim.

In addition, it may be relevant to consider insurance policies that cover illness, accidents, or extended periods of absence.

Learn more about insurances for selfemployed

Get support from IDA for your business

At IDA, we offer services such as sparring, career counselling, referral agreements, and networks that can help you develop your business, as well as guidance and advice when entering into, for example, consultancy contracts.

A well-considered leap provides the best foundation

Starting out as a self-employed professional or entrepreneur can be both exciting and demanding. However, most challenges can be managed, or even avoided entirely, if you take the time to prepare and establish the basic framework from the outset.

This is especially important if you are currently employed and plan to start your business alongside your job or after a notice period. In these situations, you should be particularly attentive and seek advice from IDA before getting started.

The more aware you are of your rights, obligations, and risks, the better equipped you will be to focus on what drives many people: using your professional expertise on your own terms and creating something that is truly your own