Do you want to become self-employed? Do you want to weigh the pros and cons before working for yourself? Let’s be honest: it’s not easy, being self-employed. After consulting our list of advantages and disadvantages, you will be better prepared to face this reality.
Advantage #1: Savings on some expenses
When you work from home, you will save on some of the expenses that might have occurred at the office. So, instead of spending a fortune on work clothes, you can work in your pyjamas! Or, instead of depositing your change into a coffee machine, you can use your coffee maker at home!
Another important point is that some business expenses may be tax deductible. For example, did you know that it is possible to deduct business trip expenses (transport, accommodation, meals)? Do not hesitate to write down all your expenses and discuss them with your accountant!
Disadvantage #1: Unstable income
Although you may be able to save money by working for yourself, you cannot guarantee that your income will stay the same. Unless you have good contacts before you start, the first years of self-employment are often difficult. Without experience or contacts, prospecting new customers is laborious.
Fortunately, through perseverance, you will find clients and earn a modest income. However, you are not immune to late payments, which can affect your expenses. One of the solutions to prevent hardships is to build a financial cushion. And to accept instability.
Advantage #2: A more flexible schedule
One of the pleasures of becoming self-employed is being able to choose the hours when you work. Do you feel more productive in the morning? Organise your work according to your strengths and plan the most demanding tasks during this part of the day.
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And if you need a break, no need to ask permission from your boss! You can schedule an appointment with your dentist in the middle of the afternoon and return to work later. As long as you can finish your assignments, nothing prevents you from taking a day off to rest.
Disdvantage #2: Difficulty picking up work
Earlier, we talked about income instability. If, on the contrary, you pick up a lot of assignments, it can be difficult to refuse new opportunities. After all, we do not know what the future holds, and this insecurity is quite understandable.
Another difficulty is being able to establish a boundary between your work and your personal life. Even if you love your job, it’s important to make time for yourself and your loved ones. Otherwise, you risk burnout, and your love of the job will suffer.
Advantage #3: The end of the rush hour
A study conducted in the Laval and North Shore region showed that the number of hours lost in the evening traffic jams doubled between 2014 and 2018. Imagine all the work you could do by reducing your travel time! Or imagine what you could do during this free time: go for a walk, prepare the evening meal, help your children with their homework, etc. In any case, you will feel less like you are racing against time. Result: your quality of life can only improve.
Disadvantage #3: Isolation
Working for yourself improves your quality of life. After all, you are your boss, and you decide on your schedule. On the other hand, you often have to work alone. Even if your job involves a lot of communication with your customers, you would not want to share your professional setbacks with them.
Fortunately, there are solutions to counter the isolation of the self-employed. For example, social networks provide many groups where you can share with your colleagues, which could also lead to face-to-face meetings. Shared workspaces (or co-working) are also avenues to consider. However, some of the cost, making them less accessible to those who cannot afford it.
Advantage #4: The freedom to choose your assignments
At the start of your life as a freelancer, you may have to accept more mundane assignments. But whether you need to pay your bills or add to your portfolio, these are all positives. Once you find yourself in a more comfortable situation, you will have the opportunity to choose the assignments that interest you.
With the freedom to choose also comes the freedom to refuse. Why waste your time with a customer who accumulates late payments? Just politely indicate the end of your collaboration, then move on. Are you overwhelmed by your workload and you have requested from a new client? You have the right to refuse. Remember: you are your boss and you have to take care of your business (and yourself).
Disadvantage #4: The loss of a client
The success of a self-employed worker is strongly linked to his efforts. However, there is also some luck behind success. Thus, sometimes your services arrive at the right time for your customers. Unfortunately, despite your efforts, you do risk losing one or more clients during your career.
Several reasons can explain this loss: a decrease in budget, customer bankruptcy, etc. And if by some misfortune, it was your most lucrative client, your financial margin will be reduced. That’s why it is recommended that you continue to prospect new customers, even if you are already experiencing prosperity.
Self-employment: a great challenge!
As you can see, becoming a self-employed person has its advantages and disadvantages. However, if that’s what you really want, it can be worthwhile, provided you are well prepared.
And in order to be well prepared, you must have the right tools at your disposal. Fortunately, the solution online Nutcache provides all the tools you will need. Log in today to try out the full version for 14 days!!