Self-employment is when an individual decides to start and run their own business. In this digital age, anyone can easily set up their own business and become self-employed. Many people are simply taking advantage of this as there are plenty of tools online that you can use to start your own business. Some people may also decide to go on self-employment due to a lack of sustainable job in the industry while others want to earn more than a minimum wage. But what are the advantages and disadvantages of becoming self-employed?
Advantages
One of the benefits of becoming self-employed is that you are in charge of everything in your business including your time and money. It means that you are your boss and you make the rules. It’s also one of the many reasons why an individual would want to become self-employed.
Being self-employed means you have more flexibility with your time. You will have more time for your family and work on your other passions. You can also work as many hours as you want or take some time off depending on your business.
Disadvantages
When you become self-employed, there’s a higher risk of losing your money. So for example, in case the business isn’t doing well, it’s a possibility that you can end up with no money at all. Overall it is a bit risky, but it depends on your situation. You may want to assess your financial capabilities before venturing to self-employment.
Although you are in charge of your time, you may need to work longer hours to get your business up and running and ensuring you are making a profit by the end of the month. It means working for months until you’re in a position where you are earning enough money and profit from the business.