Sick of bureaucracy and micromanagement? A lot of us dream of one day throwing in our nine to five day jobs and venturing out. Becoming our own boss and starting a business working from home is an exciting prospect. Life is seldom that easy and it takes a lot work and persistence in order to reach that goal.
Employment or self employment? That is the real question isn’t it? There are many pros and cons surrounding these two career paths. Lets take a look at them.
1. Grunt Work
Being a freelance businessman/woman means being a jack-of-all-trades. By this I mean that you can be the CEO but you will also need to do the most menial jobs too. You may not like doing the crappy jobs but as a sole trader they will need to be done.
Conversely, if you are so against it you can always hire someone else to do that stuff.
2. Get Up & Go
The fact that you’re reading this article right now is a positive sign that you have the desire to start a business. You will definitely need drive and motivation to succeed. Being able to know when to stop dilly-dallying and get on with the work at hand is great trait to have.
3. The Taxman
If you become a sole trader, one of the very first things you will need to do is let the HMRC know (or whichever organisation is applicable to your country) so that they can register you.
Self employed people are responsible for sorting out their own tax so this means keeping accurate records to the best of your abilities. eToro – See, Follow and Copy the Best Traders!!
4. Job Security
Job security isn’t something that really exists in the real world when you work for someone else. No job is truly secure because anything that can go wrong, will do eventually.
Self employment is maybe the wisest choice in a tough economic environment. Job security will be pretty much guaranteed if you are going it alone. This is because It’s impossible to get fired unless you decide to close down your business.
In turn, this is a good option for people who have been made redundant in the conventional employment route.
5. Income Stability
The downside is that you will not be guaranteed to earn a consistently regular income. In a day job you will mostly get paid at the end of each month or week. There is no guarantee of earning anything when you work for yourself, that responsibility lies with you, and you alone.
You probably won’t be able to accurately measure how much you earn each month at first. It will likely be very sporadic so you will need to exercise patience and remain calm.
It’s a good call to have some cash savings stored up that will act as a safety net if you ever stumble. You will have to power through long periods not knowing when or where your next payment is coming from.
Insurance and office supplies are costs that you may need to factor in. Insurance isn’t absolutely compulsory for certain self-employed people but it can sometimes be a benefit if things go wrong.
Another expense is the capital that you may want to invest into your own business. This might be coming out of you savings or you could potentially think about applying for a loan. Sometimes you need to spend money to make money.
You need to be good at fighting procrastination so that you can get on with what you really should be doing. Don’t start the day playing video games because before you know it you have wasted the whole day. Having a to-do list or some kind of plan should stop you from procrastinating the day away.
If you want to make real progress then you won’t just have to work at your business, you will have to live it.
For instance, standard employees will finish their working day, breathe a sigh of relief, go home and will be able to enjoy the rest of their free time as they please. This probably won’t be the case for the majority of the serious self-employed. They will need to fill this spare time with hard grind if they want to succeed.
9. Standard Of Living
You won’t have that much money coming in during the early days of your business so it is likely that you will need to lower your standard of living. Having less disposable income will mean that you will need to learn to be more frugal. This could range from cutting back on treats to shopping at cheaper supermarkets.
You will have a great deal of independence while you are self-employed as you won’t be relying on anyone else. You will be your own man or woman although a by-product of independence is accountability. This can be a burden as all successes and failures are on your shoulders.
It can drastically improve the quality of life of some people who dread waking up on Monday mornings. If you are grinding away at your passion project then clearly you should be having fun in the process.
12. Financial Benefits
Working for yourself will mean missing out on company benefits like sick and holiday pay.
If you are too ill to work as a freelancer then that’s tough. You can either shake it off and power through or you simply won’t make money that day. Learn the secrets to true wealth, abundance and financial freedom at TonyRobbins.com.
13. Marketing & Promotion
Unlike most employees, the work won’t just be there for you in constant supply when you arrive at the office. This means that you will have to promote, advertise and market your products/services in order to attract customers and clients. Social Media is a great, free tool to show off your online presence.
14. Bad Co-Workers
Some employees can’t stand their colleagues for any number of reasons. It could be anything from laziness to bullying. If you make it on you own then you can pick and choose your own team of co-workers who you will hopefully enjoy being around.
At the same time, you could not employ anyone else and choose to work solo if it suits you.
“Find a job you enjoy doing, and you will never work a day in your life.” From my perspective this Mark Twain quote isn’t 100% true although I see his point and there is still a lot of value in it.
Many people work dead-end jobs that they can’t stand in a profession that bores them to tears. You have the luxury of picking your fancied industry when you start your own business.
It would be silly not to pick something that you love or have an interest in. Surely it should be something you enjoy, wouldn’t you agree?
It could even be a hobby you love that you want to try to monetize. You can learn about new, interesting things and then turn it into a business. You can do this with as many different and exciting subjects as you like.
16. Time Flexibility
A 9 to 5 job enforces a fixed, rigid span of hours and days for work. Your time will be a lot more flexible going self-employed because you will be calling the shots. This means that you can do what you want, when you want, at your own convenience.
If you want to take Monday off then you have your own permission to do so. The other side of the coin is the fact that you will no longer have an excuse to get out of seeing your Mother-in-law.
17. Working From Anywhere
Running certain businesses means that you can work from anywhere as long as you have a laptop and perhaps an internet connection too. You could do it at home, on the move and even on vacation (although that can also be seen as problematic in terms of relaxation).
On the other hand, this wouldn’t ordinarily be possible with regular employment because it mostly requires you to put a shift in at a certain place at a certain time.
18. Dress Code
People who work from home don’t need to wear an uncomfortable formal suit as they have nobody else around to be judged by or for them to impress. Say goodbye to the shirt and tie and wear whatever you like. You can work from bed in your jammies and carpet slippers if you really wish to.
19. Hiring Staff
Sometimes there is too much work for just one person. If you manage to grow your business in to a behemoth then you will likely end up hiring employees of your own.
This can be very rewarding and fulfilling as you will be creating job opportunities for other people who might be struggling. You will need to thoroughly check that you can actually afford to pay any potential workers before you pursue this.
Unfortunately, it can be a headache to sort out the tax for your employees (which you are responsible for) as it’s one more job to do.
20. The Digital Age
Starting a business years ago when the internet didn’t exist was a lot harder than it is nowadays. There are all sorts of online tools available that will offer convenience and also allow you to save time. The net also offers you whole marketplace full of potential customers from around the world only a few clicks away.
In my opinion, the biggest regret in life is to regret not doing something. Working for someone else is considered by a lot of people to be the safe and easy choice. However, Is it something that you really want to be doing and will it improve your life?
Just jump in and go for it. Even if you do fail, at least you can say that you tried and it didn’t work out in the end. You don’t want to be stuck in a dreary job years from now wishing you had taken a different path. This is just another leap of faith compared to the predictability of conventional employment.
22. Family Life
Entrepreneurship can be ideal for somebody that is young and single. You have more time and your cost of living will be more modest. It will likely be a different story if you have a family that depend on your income to put food on the table.
Working from home can be good for people with children as you won’t really need to pay for childcare in some cases. Your kids will be more accessible to you too because you will be able to be flexible on spending quality time with them.
However, your kids can also be a real distraction if they are bothering you while you’re trying to work from home.
24. Workplace Etiquette
When working by yourself from home you are free to drink, smoke, fart or whatever the hell else you have the urge to do. Obviously, this would be looked down upon in a corporate office environment around other people. To clarify, I’m in no way endorsing this but at the same time it is your freedom. You make the rules.
25. Being Someone You’re Not
You don’t have to change who you are as a person in order to look normal in the office. People with wacky personalities don’t have to suppress themselves and vice versa. You’re free to be the “real” you not the “fake” one. You have no one to impress and nothing to prove to anyone except yourself.
26. Earning Potential
Most employee earnings will always be capped at a certain limit and they mostly stay limited in order to make the fat cats at the top more money than someone at the bottom of the ladder could possibly make.
Don’t despair, it doesn’t have to be that way. This barrier is lifted when you decide to become self-employed. If you go in to something like forex or any other kind of market trading then your salary could be literally limitless.
You will earn more money not immediately, but eventually. The potential is staggering. You may make so much money that you could afford to retire early while still passively earning at the same time.
27. Wasting Money
You will end up saving money because of all the temptations you are avoiding while out and about during the working day.
The main culprit for this is food bought during breaks from work. You won’t spend money on breakfast, lunch and other costly snacks. Working at home means that you aren’t surrounded by fancy stores selling all manner of things. This is ultimately healthy for your wallet.
28. You’re The Boss
This is perfect for those with a dislike for authority. You won’t have any of your superiors demanding a doctor’s note from you in order to prove you are unwell. You won’t be yelled at, talked down to or disrespected because you will be the top dog.
Despite this, all the pressure is piled on top of your shoulders so if something goes wrong then there is nobody to push the blame on to but yourself.
I can work fine without a schedule although some people need one in order to stay disciplined and organised. If you do this then you need to strictly stick to it otherwise it is pointless.
Sometimes for whatever reason you just don’t feel up to working at certain times. It is okay to take the day off occasionally but you shouldn’t make it a habit and abuse this power.
It’s very simple when you are an employee. If you don’t show up to work at a certain time then eventually you will be fired. This is usually enough of a threat for workers to follow a schedule.
There is a well-trodden expression about being able to choose your own hours when running a business. This is very true but there is a flip-side to that.
You absolutely do have the option of working as little as you like but just because you can, it doesn’t necessarily mean that you should. It can really backfire on you and your business if you view it as a free pass to be lazy.
30. Early Mornings
I hate mornings like a tonne of other people do. Certain people function better and are more productive during late afternoons and evenings. You won’t have to wake up at the crack of dawn (ridiculous-o-clock) and you won’t be fired for stumbling into work late either.
31. Getting Paid
Self-employment usually means earning money in a slower more intermittent manner. Some people scoff at this or are scared by it but don’t allow this to discourage you. You may find yourself chasing up payments of various income streams from time to time.
Entrepreneurship is a learning curve so it is likely that you will make a lot of mistakes on your journey through trial and error. This is fine because you will learn from your errors.
You may fail hundreds of times before you succeed which can be disheartening but you need to power through. It can be tough but remember, failure only happens the second you stop trying.
Some people who run businesses reach a point where they just can’t switch off for the life of them. It’s not conducive for anyone to work every hour of every day. Make sure to fit in some leisure time into your schedule.
Think about allocating at least one day off during the week (let’s say Sunday) where you can chill and not have to do anything. This will recharge your batteries and make you nice and fresh to get back at it.
If you truly feel that you can’t stretch to taking a whole day off then maybe take a few hours out to catch a movie or something.
Thankfully, there is no commute when you work from home. This also means that you will save time on journeys and money on extortionate travel expenses. You won’t be stood out in the cold waiting for another late bus, how great is that?!
35. Success Time-Frame
How long will it take until you’re successful? Firstly, I am defining success here by being able to make a modest living solely from your business.
The time that it will take to achieve this will obviously vary between different people. It all depends on how much of your time and attention you can afford to dedicate each day.
In my opinion, it is a mistake to quit your job before you have managed to build up a consistent income from your home business. It will probably take a year or two to build your business up to a point where you are making a decent wage for yourself.
You will need some kind of additional income to support yourself while you spend time and attention on your business. This may mean working your regular job during the day and then using your spare time (evenings and weekends) chasing your aspirations of being an entrepreneur.
36. Personality Types
I believe anyone can become an entrepreneur (no matter their personality traits) if they put their minds to it. Nevertheless, there are aspects of business where certain people will both excel and struggle so don’t assume that I’m picking on anyone.
Running your own business can be perfect for someone who is introverted and/or independent. If you become a sole trader then you won’t need to work with other people in a team. This is great for those of us hermits who enjoy working on our own. Free Shipping on Office & School Supplies over $50 at Concord Supplies! Use code: SHIP50 (Shipping via ground & limited to continental US) Shop Now!
Sadly, this could create hardships for a sociable person. Loneliness and cabin fever can easily set in if they are stuck on their own in one place for a long time.
Then again, it can also be good for an outgoing extrovert as confidence is a characteristic that can be well utilized in the business world. This is particularly useful in terms of leadership and networking.
37. Office Drama
Going it alone means that you can work in peace knowing that you are avoiding office politics and other people’s workplace drama. You could also say goodbye to dreaded team building exercises and office parties too.
38. Hard Work
Being an employee for someone else’s business and running a business of your own are two completely different things. Being your own boss requires you to increase your efforts tenfold when compared to normal employment.
Building a profitable business from nothing is a tall order for anyone. You need to be prepared to be determined and put in the time. Your heart has got to be in it otherwise what’s the point?
Most people usually have a boss who will yell at them when they start slacking off at work. That person doesn’t exist when running your own business which means that you will have to do that task. You will need to make sure that you are working efficiently.
Self-discipline is truly one of the hardest and most important elements of this. Some people find it easy to motivate themselves while others really struggle with this.
Don’t worry if you are the latter as there are ways that you can learn to be more disciplined and organised such as setting long and short-term goals to strive for. If you want it enough you will always find a way.
I’ve covered quite a lot here and I hope that these pointers have given you a lot to think about before you make your decision. I truly wish you the best of luck on your path to business success. Please don’t forget to share this with your friends and comment below. Thanks for reading!