What are the Pros and Cons of Being Self-Employed?
For many employees, the idea of becoming self-employed is very attractive. No longer having a boss or manager to answer to and, of course, being able to choose your own hours, is extremely tempting.
However, careful thought should be given before proceeding down the self-employed route. Starting a business is not easy and requires a huge amount of discipline, as well as clear and achievable aims and objectives. Earning potential when self-employed is practically limitless; however, success only comes with some really hard work.
Deciding to go for a change of career is a gigantic step and one that cannot be taken lightly. Getting things wrong can be a waste of time and money, not to mention hugely dissatisfying. On the other hand, getting it right can mean success on all levels. Before embarking on a self-employed project, the positive and negative aspects should be considered:
Advantages
Freedom – Choice to do what you love and with whom. Being self-employed will allow you to go in whatever direction you fancy (within reason) and working with people you don’t get on with can become a thing of the past. You may still meet individuals as part of your job who you might find annoying, but it becomes your choice as to whether you tolerate them or not.
Decision making – You can make your own decisions, for your own reasons and these will not be questioned. Not only that, you will be free to change your mind should you want to.
Job security – As your own boss, you can no longer be fired! Control over your career rests with you.
Time off – If you need time off, there is no longer anyone to tell you if and when you can take it. It’s all down to you. You will no longer have to miss those special occasions, unless you want to.
Confidence – Being your own boss is great for your confidence. Your potential is limitless.
Location – You can choose to work anywhere. From home, to a day office Manchester or on the beach in Cornwall. Whatever works best for you and your business!
Being self-employed allows you to achieve beyond what your qualifications and past experience might allow under an employed status.
Work life balance – Your work/life balance may become more manageable and as such, you will be a happier, more fulfilled person.
Disadvantages
Unfortunately, as with most things, there will always be some downsides.
Working hours – May be long and income might be sporadic, especially at first.
Holiday pay – This is non-existent when you are self-employed. In fact, the opportunity cost of a holiday is much higher. This puts many self-employed people off taking time away from the business.
Insurance – As a self-employed individual you will be responsible for your own health insurance etc.
Success – It is difficult to succeed in today’s competitive markets. Will your business model work? Only time will tell. Until you have been able to build a solid reputation it is going to be hard work. Maintaining this reputation over time will also take some considerable effort.