The title to my post may be a little misleading, and as a matter of fact I don’t think that self-employment is for everyone, but it is an excellent option for many, and loads of people currently in traditional ’employed’ jobs could be a lot better off and happier working for themselves. So what are the benefits of self-employment?
Firstly, lets think about it, most of the time when you’re being employed, it is because the money you are making for the company in question is greater than what they’re paying you. In some cases this is more complicated than a simple sale of your services, but when you boil it down, unless you work publicly, someone’s making money out of you.
If you’re working for yourself, you’re building something for yourself, and their is no ceiling. Many trades and businesses can be scaled, and can go as far as you want them to with the right direction and planning. A career relies on somebody to give you a chance. In the future, employees and other freelancers may make your career simpler and free up your time, leading me to the next point…
Choosing your own hours. Of course in some situations you will have to book yourself into appointments, but that doesn’t change the fact that you are your own boss and manage your own diary. If you meet your deadlines, you’re set. When you get the work done is up to you.
A recent study has shown that self-employed people on average earn 45% more. You set your hourly rate, and as a freelancer or contractor you can also provide value to a company by not needing holiday pay from them, or by providing services on an ‘as and when’ basis, not to mention the next benefit, and another choice you get…
You can weed out clients. Why would you want to do that? The 80/20 rule may well dictate that 20% of your clients are the ones where most of your income are from, or may alternatively dictate that 20% of your clients give you most of the headaches! You can weed out what you don’t want, and outsource, or cut ties altogether. Pick and choose your work.
I’m not saying running your own business, service or otherwise, is for everyone, and it has its drawbacks and risks, but for many it can be a new lease of life, and many trades lend themselves to being your own boss.