Pros and Cons of being Self Employed
If you have worked in any commercial organization, you would know the hassles of working for a boss and with colleagues. Tight deadlines, tough boss, gossiping colleagues, demanding targets etc can tax your patience and goodwill, not mention the seedier aspects of corporate life like cronyism, nepotism etc. So, almost all of us have wondered whether it would be better to branch out alone and become self employed. If you are thinking along the same lines, read on to learn about the pros and cons of being self employed.
Pros of Being Self Employed
- The most obvious benefit is you are your own boss. There is no need to kowtow to anyone or follow their rules.
- You can work according to your convenience and comfort and be flexible about the place of work, number of working hours, schedule etc.
- You reap all the benefits of your hard work (unless you have a partner).
- There is unmatched freedom to work creatively, innovate and implement new ideas and do anything you please since you are in sole charge.
- You can implement all your ideals and goals without interference from anyone.
- You have full freedom to change obsolete and failed plans, and you do not have to take anyone’s permission for it.
- You can learn as you go along and develop new skills that can enable you to become successful on your own.
- You need not worry about the ‘glass ceiling’ that exists in many companies. You can reach as high as your abilities guide you.
- You have the option of working alone or selecting partners you know are competent and compatible. There is no need to worry about demanding bosses or unfriendly colleagues.
- In case you have a tiff with someone, you are at liberty to stop doing business with them.
- Since you are in charge, you need not worry about anyone above you in the hierarchy turning down your ideas and plans.
- You can chart out your career path according to your likes and abilities.
Cons of Being Self Employed
- The onus is solely on you to make decisions and choices. You cannot pass the buck to anyone else.
- You cannot depend on a regular paycheck especially if your business is not doing well.
- Only a self-motivated and disciplined person can succeed alone because there would be nobody to crack the whip or motivate you every day.
- You have to select an office location (home or a shop). If you choose a shop, there is the additional burden of the costs of rent, utilities etc.
- If you decide to work from home, you may be distracted by your family or environment.
- At the office, you can turn off at the end of the day and relax without any worries. But, a self employed person may face more stress and tension since they are solely in charge of their business and would be directly affected by any downturn or losses.
- If you work from home, you would have to clearly demarcate between your work and personal life. Basically, you need to ensure that your personal life does not come in the way of your daily work.
- Certain start-up businesses need cash to get going. These are more risky ventures as any losses means you are that much poorer as your founding money would be gone. It is therefore preferable to freelance from home and work for an established company as you would not have to worry about start-up cash, losses etc. You are assured of a regular paycheck depending on your productivity and the quality of your output.
- Self employed people do not have worker’s compensation and also have to pay for their insurance.