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Self-employment - advantages and disadvantages

Self-employer is an individual who works for himself and solely liable for his business activities. When in most cases, as the name applies, the self-employer is considered one person, but it can be a family business where a husband and wife will materially participate in their activities. In addition, self-employment does not limit numbers of worker in the business. The man power will be considered whether as employees or as independent contractors.

There are lots of benefits to run your firm and be your own boss. However, before even consider starting your own business and become a self-employer, you should evaluate your ability whether you are strong enough to handle this. Unfortunately, depending on your activity there can be a lot to lose as well. That’s why, be aware that no matter where and for whom you work it will be hard. Therefore, don’t expect that to work for self is less stressful than for someone else.

Self-employment advantages

- If you are self-employed you don’t need to listen what to do from your boss (since you won’t have one) or anyone else. You make your own decision without a fear that someone might disapprove or criticize it.

- Your own business might bring you more money depending on your performance and not what your annual salary is.

- You manage your time.

Self-employment disadvantages

It is only partially true that to be your own boss is a good thing because instead of one boss you get many of them and they will be your customers. Your clients will dictate you what and how to do, which might be even worse than to hear that from your supervisor. Some people can be really unreasonable, but you still will have to deal with them in order to support your good name and reputation or avoid breach of a contract. There won’t be any person who can cover you. Sometimes you might have to manage your hard feelings in order to keep up your constant and repetitive business which is the key to success.

The thing that you earn more money while you are self-employed is questionable. In some cases your own business might seems like brining you more money in comparison with what you would earn by working for an employer, but after you subtract your annual expenses from self-employment gross receipts the actual profit might be much less than if you would work for someone. In addition, when you employed you have stable salary no matter what. However, with self-employment you will face more risks of not receiving payments on time, not being paid by clients, or not getting a project you were counting on so much.

In order to succeed in business, especially from the beginning, you might have to work long hours, sacrifice your weekends and spend holidays on implementing new ideas into real life.

Is it worthwhile to start own business?

Usually the answer to this question might be yes. If you have a good idea to begin with than you will definitely develop it overtime and find solutions how. To reduce somewhat your risk you may decide to start your business with someone else (a partner), a person you can trust and count on. Family business is also another solution to the hard situation when you cannot find employment for yourself. It is all the time better to tell your ideas to your family members than to someone else because your close ones will always support you without trying to use or take advantage of you.