Last Update on January 20, 2016 // Written by Hank
Individuals often opt to go into self-employment soon after graduating. This offers you a lot of freedom to start and run your business. While it can be liberating and rewarding, self-employment has its share of challenges.
Pros and cons of being self-employed
As mentioned before, being self-employed offers you tremendous freedom over your career and business. You are your own boss and you get to make all the decisions without consulting. This helps avoid all the bureaucracy found in most workplaces. Your decisions can be made quickly and you can change them whenever you see fit.
Furthermore, you get to control your business hours, working as late or as early as you please. Depending on the nature of your business, you can hire the staff you want and you get to decide whom to partner with when it comes to suppliers and distributors. Additionally, as a self-employed person, your creativity will be unimpeded, allowing you to steer your business in whatever direction you choose.
On the other hand, self-employment is not a bed of roses. Being the boss means that you shoulder all the responsibilities of running a business on your own. This can be a lot of pressure to handle. To ensure that your business runs smoothly, you have to be in control of every aspect. Another thing to watch out for is the tendency to spread yourself too thinly. The excitement of starting and running your business can often tempt you to try to do everything yourself. You might set goals that are too high and try to achieve them too fast, leaving you burnt out. Alternatively, you might find yourself reading countless blog posts like this https://victoriousseo.com/blog/referring-domains/ trying to learn about things you do not know about, such as digital marketing, and then attempt to do this yourself without any help (despite the fact that it is out there), which could mean that you do not get the results you are hoping for. It is not a sign of weakness to outsource some jobs; infact, it could make your life so much easier and your business stronger.
As a self-employed person, be prepared for some periods of financial insecurity. Since someone else does not employ you, you don't have the safety and security that a regular salary provides. You might have to put in more effort and work extra hours to earn a steady income.
Handling your finances as a self-employed individual
Poor financial management is one of the downfalls of most businesses. The state of your business's finances can make the difference between business success and failure. For this reason, you need to ensure you have a solid cash flow management system in place to ensure you know what you owe/ are owed at any given time. This can be achieved by using outsourced accounting services by going here, as well as looking at other financial help so that your money management is up to your specifications.
Managing your business finances involves more than getting capital to start the business. It also involves purchasing business insurance as well as being tax compliant. For a small business insurance, you can consult various service providers to look for services like business interruption insurance, equipment breakdown coverage, product and cover liability insurance, etc. These covers can ensure that if your business ends up in a compromising situation, you may not have to face severe financial losses. Additionally, as a business owner, it is your responsibility to ensure that all your taxes are paid correctly and on time. Failure to do so can have a detrimental effect on your business. One of the easiest ways to manage your tax and business finances is by making use of one of the many companies that provide professional accountants for contractors. They can help you stay on top of your bookkeeping to ensure your business runs without a hitch.
While being self-employed can be challenging, if you stick it out, you will eventually reap numerous rewards and you will have the satisfaction of seeing your business prosper.