This site is now an "Amazon Associate", we earn from qualifying purchases.

The Pros and Cons of Self-Employment

Image result for why self employment

Self-employment can be one of the most exciting, yet challenging things that a person can take on.

It's easy to understand how leaving the familiarity and "security" of a normal job and steady paycheck is a daunting prospect for many budding entrepreneurs. In fact, the fear of being self-employed has often crushed many great ideas before they ever got off the ground.

There's no doubt, being your own boss is challenging and it's not for everyone. Still though, if you have a bright idea, are hard-working, resilient, resourceful and organized, then being your own boss can give you some freedoms that you’ll likely never realize when you work for someone else.

To give you a better idea of the good and bad of self-employment, we've provided lists of the pros and cons so that you can make an informed decision as to whether self-employment is for you or not.

The PROS of Being Self-Employed

  • Financial rewards - Businesses that are run properly often become very profitable. Companies are willing to pay more to independent contractors because they don't have the expensive, long-term commitments that they do with permanent employees, such as benefits, unemployment compensation, and pensions. Independent contractors may also deduct business expenses from their taxes, which may increase their net pay.
  • Freedom, independence and control - Other businesses or individuals you work for are your clients, not an employer. As your clients, of course, they tell you what results are expected, but they do not dictate how you accomplish the job. Without a doubt, you want to satisfy your clients in order to receive favorable referrals, more work and/or higher rates. But you are your own boss - you'll decide when, where and how to get the job done.

The CONS of Being Self-Employed

  • Paying taxes - As a self-employed person, you are solely responsible for doing all the paperwork and paying your taxes on time.
  • Fewer free benefits - You will have to pay for your own vacation time, fund your own retirement plans, and buy your own dental, disability and life insurance.
  • Less security - It will be your responsibility to make sure you always have work to do. This means you may sometimes be without work and therefore without income.
  • The need for financing - When you are self-employed you have to finance your business, there is no one to provide you with the needed equipment and tools like would be available at a job. This shouldn't be a huge deterrent though, all successful businesses have to deal with this and self employed loans are easy to find.

We hope that you'll be able to make a wise decision for yourself and your family. Everyone's circumstances will differ and there is no one-size-fits-all answer. But with the information given above, it should improve your perspective and make your decision an informed one.

Peer to Peer Lending and Private Lending Info