Are you considering starting as a self-employed entrepreneur? Do you still have doubts about this? Then read on quickly. This article lists the pros and cons of self-employment for you.
Degree of certainty
A big disadvantage of being self-employed is that you have less security. This is also one of the common reasons why people prefer to remain employed. After all, you are then sure of a fixed income and do not have to worry that you might earn less money during certain periods. Yet the security of being an employee is often a false security. Nowadays, you can still be fired easily. There is also a price you pay for security, namely your freedom.
Degree of responsibility
A big advantage of being salaried is that you have a lot less responsibility. Even if you have climbed high on the career ladder, you have less responsibility than if you own your own company. Yet having more responsibility is precisely one reason why some people start their own business. After all, more responsibility also gives more freedom. Many people who are self-employed need this freedom. They want to be able to make their own choices and not follow the rules someone else makes for them. Moreover, as a self-employed entrepreneur, you can also outsource many things, which gives you a little less responsibility. You are still ultimately responsible, but keep more time as a result.
Costs of being self-employed
If you have your own business, you need to take into account several additional costs. If you are salaried, you get your money paid into your account every month and you don’t have to do much yourself. All you have to do is your tax return and possibly declare your travel expenses. Are you going to be self-employed? Then make sure you carefully calculate the extra costs for administration in your hourly rate. Also take other costs into account, such as the costs of building and maintaining a website, insurance, renting or mortgaging an office and buying materials. You can make big savings by finding out where you buy your products, services and materials. Via Cloud86, for instance, you can arrange web hosting at low cost.
A big advantage of working as an entrepreneur is that it is often easier to earn more money. In fact, if you are a successful entrepreneur, you can generate quite a lot of income. Especially in the beginning, you are entitled to many deductions, which can leave you with more money. However, you are less certain of a certain income, so the income may vary from month to month.
Are you very doubtful? Then start talking to other entrepreneurs. That way, you can discover whether it is something for you. You can also possibly start part-time entrepreneurship first alongside a part-time job.