Self Employment – Do it or do it not?

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Offering a lot of leeway in choices such as nature of work, income and work hours, the idea of being your own boss is indeed fascinating and one that is trending. According to recent researches, entrepreneurial workers in both U.S and Britain are turning to self-employment in great numbers; half the working population in both these parts of the world could be their own boss within 5 years (Forbes).

The Growing Trend

Even though self-employment has long been a choice for people seeking a better or a new career path, the prospects have amplified much more during the recent years. Thanks to the latest technologies which make it easier than ever before to switch to self-employment and growing demand for flexible working from buyers of services and products. Besides, the growing number of online platforms that allow people to offer their services to a global audience is another factor that accounts for the growing inclination towards entrepreneurship. Flexibility and work/life balance are some other added advantages that lure people to seek self-employment.

Stunning Statistics

Here are some statistics about self-employment and new businesses which can give you a fair idea of the latest trends:

  • About 543,000 new businesses get started each month
  • Over 50% of all small businesses are home-based
  • 7 out of 10 new employer firms survive at least 2 years while a third at least 10 years 7

Benefits of Self-Employment

Being your own boss must be the life. You can set your own hours, give yourself a raise when you want and all while you are doing what you actually love. There are quite a number of advantages of being your own boss.

  • One of the greatest advantages of being an entrepreneur is the flexibility. You can decide how many hours you work, how much money you want to make and who you want to hire.
  • You can earn more. On average, those who are self-employed earn 45% more than those who are employed. In addition, they are also allowed to take certain business expenditures that employees are not, which allows them to keep more of what they earn.
  • You spend less. Think of all the money on gas you can save if only you can work from your home office. So being self-employed means spending less.
  • Variety of work. As a self-employed individual, your work is changing continuously. You learn, adapt, and update your skills constantly which in turn gives you a chance to be involved in a variety of tasks.
  • Reap your own rewards. As your business grows or you make more profits, you are the one who will enjoy the rewards.
  • Work-life balance. If you have a family being self-employed can provide you with additional benefits of allowing you to maintain a balance between your work and family life. You can spend more time kids with your dear ones, set out on holidays when you want without seeking anyone’s permission or just be there for your little ones or spouse when there is need.

Risks

While the number of people who are turning towards self-employment has swelled recently, not every member of this swollen self-employed crowd will make a success of their endeavor. Why? There are certain risks that involve and before you join the team you should have a fair idea of them so that you can make a well-informed choice.

  • In most cases, those who are self-employed have to work harder. It means that you have to put your physical, mental as well as emotional health at stake.
  • There are obviously financial risks involved for those who decide to have their own business. Set-up costs including equipment, marketing, legal fees and of course, taxes all need to be in the budget. In addition, where your employer may have covered costs such as health or dental insurance, you will have to cover these on your own at least during the initial phase.
  • Irregular income. When you are your own boss, you may earn more than what you may make as an employee but it also means you may have uncertain income. Sometimes you may earn more while if the business is slow, you may have to spend out of your own pocket.

 Do It Or Do It Not?

Before you step into the world of entrepreneurship, ask yourself these following questions:

  • Are you a self-starter?
  • Do you have leadership and organizations skills (or if you are willing to acquire these)?
  • Do you have financial backing?
  • Are you ready to take risks?
  • Are you patient?
  • Are you ready to work harder than you do as an employee?
  • Do you want more flexibility?

If yes, you are the right aspirant for self-employment.

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