Deciding To Go It Alone
There are many reasons to become self-employed. A lot of people fantasise about it, but there are a lot of disadvantages that people don’t always consider. Weighing up the pros and cons will allow you to make a more informed decision and decide if becoming self-employed is the right thing for you. This is likely one of the biggest decisions you will need to make so if it’s on your mind then give it some careful consideration.
The Pros Of Being Self-Employed
The first thing a lot of people think about when becoming self-employed is the fact that they will be their own boss. This is obviously one of the main positives about becoming self-employed but there are many other advantages to consider. These include:
- You will have more flexibility and control for such things as childcare
- You can explore your creative and entrepreneurial side
- Your work can be more varied as you can work on several different projects at the same time
- You have the potential to earn more money
- You could be able to ditch the commute as you should be able to work from home or chose your own working space
The Cons of Being Self-Employed
Of course, there are a lot of disadvantages to consider before taking the plunge, in particular the costs and risks involved with such a venture. If you become self-employed it’s similar to running your own business. You need to make sure all areas of the business are taken care of properly. Other things to consider are:
- Finding a route to market or acquiring clients may be challenging initially
- Your income is not guaranteed, which means it can be difficult to keep up rent or mortgage payments.
- If you take a holiday or are unable to work due to sickness you will not get paid
- Working alone a lot can be an isolating and lonely existence
- It can be hard to maintain a good work-life balance
Things To Consider Before Becoming Self-Employed
Finally, if you do decide becoming self-employed it the right decision for you there are lots of additional things you must remember to do:
- Advise HMRC that you are now self-employed
- Set up a business bank account
- If you’ll be working from home, check your tenancy agreement or mortgage agreement to check you’re not contravening any terms
- Sort out your insurance – public liability insurance or professional indemnity insurance are the main types of business insurance to consider
- Think about a pension – you will no longer be paying into a company pension so putting away more money than before may be advisable
The only person who can ultimately decide if becoming self-employed is the right thing for you to do is you. Ultimately, the best thing is to make yourself fully aware of the risks and advantages involved and make an informed decision. If you do decide to go it alone, then good luck!