So I have listed all the reasons why to start a business in my previous post , which you can read HERE. And as much as I recommend it, I feel obliged to also list all the cons of being self employed so you can make an informed choice whether this is something for you.
1) You Have To Be REALLY Self Motivated.
When you work for yourself, you don’t have that whip over your head, which technically doesn’t sound like a disadvantage and yet it could be one. Because noone is actually forcing you to do a fair share of work or judging your results or making sure you start working in the first place, you can get sloppy and lazy.
Having a business is quite a responsibility – you need to make sure you really want to succeed and you put enough time and effort into it, cause being your own boss also means that sometimes YOU have to shout at yourself to get to work 🙂
2) You Are Responsible For All The Legal Stuff
When you earn money on your own and you cash it out and spend it etc, it naturally means that noone else is making sure that all the due tax is paid and all the necessary insurrance deductions are being taken care of. It is also up to you to decide whether to set up a private pension somewhere or simply invest money somewhere or just leave it for the time being. You have to think for yourself in every aspect of business, including your financial security.
Depending on how successful you are, you will have to consider whether doing your taxes is something that you can do yourself (it’s not as complicated as people often think) or is it worth to pay a professional accountant to do your finance.
3) You Think About Your Business All The Time
The reality of having your own business is that you tend to think about it all the time and for some people it can be difficult to relax and distance themselves from their work. Some people might even stress when they’re not doing so well, and obviously every business has slower periods, even the most successful one. That can sometimes lead to stress and inability to relax when you’re meant to relax if you cannot control that feeling properly.
When you are just someone else’s employee you leave your work and, in most cases, you don’t worry about it until the next morning. You don’t tend to think about the company’s customers, you don’t care about company’s income and you certainly don’t take your work home (if you do then you should check the reasons to become self employed again and definitely consider it even more). Basically, for most of people employed by someone else, work does not exist until they have to be there next time which lets them separate their work life from their home life. Honestly , it’s not always possible when you run your own business.
4) No Guaranteed Earnings Every Month
If you are hard working and determined the chances are that you will become successful. You have to realise though, that as much as it is great to be able to earn the big money when you succeed and it is really fulfilling to see a large profit coming from your own hard work, it is also very unpredictable. One month you will be overwhelmed and ecstatic about your income and the next month it can be really slow.
When you work for someone else, you don’t have to care if it’s a slow month or not. They have to pay you what they have promised you monthly and no matter how low you might think the wage is – it is guaranteed. Some people like that stability.
5) No Paid Holidays
You have to remember that from the day you started your business, you are solely responsible for everything and noone will subsidize anything anymore, like some companies do for their employees.
When you want a holiday, you can take it whenever you want – granted. But you also have to put some money away to do it as noone pays you when you’re off work anymore. You only live off the work that you actually do.
To sum it all up . Starting something as important and new as working for yourself really is can be overwhelming and can feel so much different than what you are used to. Personally, I think it’s a good change as it gives you freedom, which we don’t have enough of in our lives nowadays. But it is super important to know and consider the above cons as well as the pros of the whole aspect and make a decision for yourself.
You can always try to do both for awhile – there’s no rules against being employed and self employed at the same time. In fact that’s how most people start their career. Noone wants to jump straight ahead from one thing to another not knowing the future and it’s always good to try before you buy.
Any comments welcome