In these uncertain times, many of us are reconsidering our careers. For some, that means taking the plunge into self-employment. But what are the advantages of self-employment? Is it worth it?
When the pros outweigh the cons regarding self-employment, there were two great things about the early entrepreneurial opportunity. With the dawn of the twenty-first century, many more small business owners were successful in their own right, and entrepreneurs eventually brought an unprecedented number of entrepreneurial ideas to fruition.
Let’s take a look.
Pros of Self-Employment
There are many advantages to self-employment, including the following:
You’re the boss: When you’re self-employed, you get to call the shots. You don’t have to answer to a boss or take orders from anyone. You can set your hours, work from home, and take time off whenever possible.
Make your schedule: One of the great things about being your boss is that you can make your schedule. You can do that if you want to work four 10-hour days and then have three days off. Or if you want to work three days a week to spend more time with your family, you can do that too. It’s entirely up to you.
Be more productive: When you’re in control of your time, you can be more productive and get more done in less time; this is because you’re not wasting time commuting, attending pointless meetings, or taking long lunch breaks. You can also structure your day in a way that works for you. For example, if you know you’re not a morning person, you can start working at noon and work until 8 p.m.
Earn what you’re worth: When you’re self-employed, you get to keep all the profits instead of giving a large chunk of it to a boss or shareholders. And since you’re in control of your time, you can also charge more for your services since you’ll be able to get more done in less time.
Enjoy tax breaks: Self-employed people often enjoy significant tax breaks since they can deduct business expenses from their taxes; this includes the costs of office supplies, equipment, travel, and much more.
Have more fun: When you love what you do and are passionate about it, work doesn’t feel like work anymore—it feels like play. And when that happens, life is much more enjoyable.
Follow your passion and break free. Working from 9 to 5 to make ends meet can be quite depressing. Working for something and finding something you are passionate about is important. That way, you will not tire of it; the best part is it can earn you money. Passion will give you the will to go ahead and do what you have to do.
The Disadvantages of Self-Employment You Didn’t Consider
When you become your boss, you think you’ve hit the jackpot. No more 9 to 5! You can set your hours, take as many vacations as possible, and make your income. But they need to tell you that self-employment comes with a unique set of challenges that can be difficult to navigate. Here are four disadvantages of self-employment you should consider.
You’re responsible for your health insurance. Because it’s a piece of income-tax legislation, opponents have warned that the law will cost the nation an invaluable amount of revenue 2. If you have a slow month, it’s entirely on you to make the difference.
If you have a slow month, it’s entirely on you to make the difference.
There’s no such thing as paid vacation days or sick days. You have to show up for yourself all the time.
You have to be okay with working long hours, nights, and weekends. It is your business. You have to put in the hours.
While there are some disadvantages to self-employment, there are also many advantages. You have the potential to make more money, set your hours, and be your boss. If you’re considering taking the leap into self-employment, weigh the pros and cons carefully to see if it’s the right decision.
Things to Consider Before Going Self-Employed
Of course, there are some things to consider before taking the plunge into self-employment, such as:
It’s not for everyone: Not everyone is cut out for self-employment. It takes a certain type of person to work independently with no one telling them what to do or when to do it. Self-employment may be wrong if you need structure and direction to be productive.
There’s no security: One of the biggest downsides of self-employment is that there’s no income or job security guarantee. When you have a regular 9-to-5 job, you know that as long as you show up and do your job, your paycheck will be deposited into your bank account every two weeks, regardless of whether or not there’s enough work to go around. But when you’re self-employed, if there’s no work available, then there’s no income—period; This is why it’s so important to set aside savings before jumping into self-employment so that you can weather lean times without too much financial hardship.
Requires hustle and grit: When starting as a self-employed person, you will have slow periods where work is scarce, this is normal and nothing to worry about, but it does require some hustle on your part.
During those times, you must hustle hard to find new clients and keep the ones you already have. Once you get established and have a steady stream of clients, things will become easier, but in the beginning, expect to work hard for every penny.
With hard work and devotion, self-employment can be the financial ticket that you have been waiting for. The career path is often filled with challenges and emotional ups and downs. Still, a variety of people at different stages are making their careers by establishing their businesses.
Entrepreneurs should consider many advantages and disadvantages of self-employment before switching from traditional employment. However, for those who are cut out for it and willing to take on the challenge, self-employment can be the most rewarding career move imaginable. What do you think? Are you cut out for self-employment?