The Short Answer is It Depends On You. The Long Answer – Let’s ask a few questions and weight the difference between being self employed or being employed.
Let’s get the questions out of the way first:
Are you self-motivated and need little to no supervision?
Do you operate well with a team or alone?
Do you need structure or can you set your own goals and meet deadlines?
Are you the type to go out of your comfort zone or stay in it?
If you reach 100 prospects and they say no, will you give up or continue until they end up being yes?
Do you have funding incase money runs dry for a few months?
Weighing the Difference – To be employed or not!
So let’s talk about all the positives of being self-employed.
One of the biggest positives to being a self-employed individual is that you are the boss. You decided your day, when you’ll show up for work, when you leave, when you have launch or if you even work at all that day, if you pass on a customer’s call or jump on the phone the minute they call you. There is something to be said about this freedom as its awesome but if you can’t motivate yourself. Being your own boss simply won’t work. This is why I asked a few questions before weighing the differences. Depending on your answer, you’ll know rather you will rise or fall being your own boss.
Another factor is that you’ll usually enjoy your work more as you’re the one deciding the work. Generally speaking you’ll earn more money than being employed after you get a steady income flowing in. You’ll be allowed to deduct from your taxes certain business expenses such as office paper, phone bill, and a few other things. Depending on if you become a self-employed home worker, you’ll also spend less money on gas to get to work, time to get to work, and you can work anywhere (while on vacation, while at mom’s, watching the kids, etc). As a self-employed freelancer you’re job can be ever evolving as different clients have different needs you’ll adapt, learn, update your skills or hone current ones.
If you work self-employed and by yourself there will be no “workplace drama” unless of course you are having internal struggles! On a very positive note, no more sick day excuses or required note! Simply put a message that you’re closed and that’s that! You’re work space is also not limited to the confines of a cubicle unless you like to work in a cubicle. You can use a standing desk, no desk, an outside office or whatever your heart desires to work in.
Now, since we talked about positives, let’s throw in some negatives for being a self-employed boss!
Since you’re the boss, you choose your day. However, people without motivation will often choose to lay in bed rather than get up every morning and prospect for clients everyday, or will extend their sick day just a bit longer. Sometimes, people need that structure and accountability to stay motivated and make sales. If you feel that you aren’t very motivated then don’t become self-employed. If you feel that you might give up because you just seem to be getting too many “No’s” then being self-employed may not be for you.
Another major factor is health care cost and “employee benefits” are out of pocket costs. You’re also completely responsible for reporting your tax return correctly.
So let’s bring to the table some positives about being an employee. You have a set time for work, vacations, off-time, sick days, and a schedule. This makes planning events with the family much easier. Most employees get a benefits package that includes health care along with their taxes being completely taken care of. The biggest bonus is as long as you’re a salary employee you can count on your pay check being there and the money is stable. Normally, there isn’t a period where the money could go dry. Your manager is holding you accountable so it’s harder to just be “lazy” because you can.
Only after weighing all your options should you make the decision to be an employee or to be self-employed. Again neither one is for everyone and this post doesn’t have all the answers. There are a few questions you need to ask yourself to know what you’re really cut out to be.