How To Start A Business (Series) - Pros & Cons of Self-Employment

Updated: Nov 28, 2020


Are you planning on becoming self-employed? Well it helps to know the advantages and disadvantages of venturing into the world of self-employment. Frankly, we can say that self-employment is not that as easy as it is often made out to be. Yes, it has it upsides and perks associated with it, but there are a number of drawbacks as well. Here are some common advantages and disadvantages you may encounter on your self-employment journey.


Advantages of Self-Employment


The following are some of the advantages of self-employment.

  • Time Flexibility - Working On Your Own Time Schedule:

Self-employment often allows you to work to your own schedule. You are rarely dependent on anyone else in this regard and can create your own working hours based on what works for you. There are no time limitations and you don't have to restrict yourself like you would in a 9-5 employee role. In the case of many freelancers, they often work based on their own time flexibility. They are seldom bound by time; instead, they are bound by the task itself. Once the task is done, they can deliver the project to their client and move on to the next task or simply take a break from working, if it so suits them.

  • Remote Working Opportunities:

Another significant advantage of self-employment in the age of online products and services, is that for some professions/ small businesses ideas, you are not bound to a particular location, thanks to the ability to provide professional services online, allowing you to work from wherever you feel comfortable. You can work from your very own home and create your own workspace or even work on the move while traveling. There is often no need to report to a particular office and that sense of freedom is priceless

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  • Potential To Make More Money:

Self-employment has the potential to allow you to make more money once you have a viable business idea, compared to many traditional jobs. Being self-employed provides you with the opportunity to scale up or down your workload, giving the entrepreneur the chance to do more when needed. The more work you do, the more you get paid and you won't have to share profits with anyone else, if you are the sole proprietor of the business.

  • You Can End Up Saving Money:

Working from your chosen comfort zone often allows you to save more money on expenses associated with traditional work environments, like offices. So, instead of spending money on transportation and formal/work related clothing, you can save those funds for a rainy day or simply invest them back into your business.

  • Deciding Who To Work With:

In standard office environments, you seldom have a say in what colleagues you work with or what clients to offer services to. However, self-employment allows you to work with people of your choosing. If you aren't comfortable with a particular client, you have the option of not working with them, the pros and cons of doing so are completely yours to weigh up before making a decision. If you find someone rude or disrespectful you can skip that client and choose to work with someone else. Unfortunately in the traditional professional work environment, refusing to work with such a person could very well cost you your role in the company.


Disadvantages of Self-Employment


On the other hand, here are some common disadvantages of being Self-Employed.

  • Income Instability:

Self-employed individuals, especially in the beginning stages of starting a new venture, are often subject to income instability. It is quite a common occurrence