The job title ‘self-employed’ is becoming more visible around the world. Not only is the idea of being your own boss commonly accepted, it’s envied! Who wouldn’t want the freedom of making their own schedule and deciding what they do that day?
In reality, being an entrepreneur isn’t all fun and games. You are solely responsible for your success, and it takes a lot of hard work to get the momentum of a self-owned business going.
If you’re debating on leaving your current job, you should understand these seven realities of becoming self-employed before you take the next step.
1. You Have to Do Things You Don’t Want to Do
So your side gig is turning into a potentially lucrative career. Great! You get to do what you love and make money at it!
But there are factors that go along with being self-employed that you might not enjoy so much.
You have to deal with the complaints that you would have passed on to management at your job. Taxes and payroll are all in your court now. And whether you’re an independent contractor or a freelance entrepreneur, you have to be organized.
When things go wrong, you’ve no one to blame but yourself. On the other hand, you can pat yourself on the back for a job well done, too!
2. Time May Not Be on Your Side
Being your own boss requires strict time management skills. There are going to be days when your workload takes over your personal life. Then there will be the downtimes that need to be used for the mundane parts of your business.
If you aren’t self-motivated enough to set and keep to a schedule, you can easily become stressed out.
Procrastinating on the things you don’t want to do, like taxes, doesn’t make them go away. They’ll still be waiting on you, but they might be accruing interest and penalties while they do!
3. It’s a Different Kind of Stress
All work has its own type of stress. When you were employed by someone else, you may have experienced the pressure of having to please others to keep your job. Maybe you felt like you were overworked and underappreciated by the management.
These are common stresses that occur with employment. You’ll leave behind that type of pressure and exchange it for another one. But because it’s really up to you how stressed you become, it can actually be satisfying!
Yes, you still have to please your clients to get paid. The reward is directly to you, though! It’s easier to deal with the negatives when you control the positives in a more hands-on way.
For instance, if you decide to take a last-minute long weekend, it’s worth the extra work you have to do to prepare for it. And there are no time-off requests necessary!
4. You’ll Need to Plan for Social Time
This reality is particularly accurate if your self-employed job requires you to work from home most of the time. Careers like writing and accounting are notoriously solitary.
It sounds like a dream for many people, but socializing is actually a crucial part of good mental health.
Somewhere in your busy schedule, plan a standing meal date with your friend or family member. Say yes to engagements when you’re given enough notice to rearrange your workload.
Make purposeful attempts to socialize, whether you feel like it or not. You’ll be able to tackle your work better when you give yourself a chance to recharge around others!
5. Outsourcing is a Skill You Should Learn
If you provide a service, someone is outsourcing their work to you. You are the expert; you do the job better than they could. So they hire you and put the work in your capable hands!
This is a method you should learn quickly in order for your business to become the most efficient it can. In many cases, outsourcing a professional will save you money.
Think about how much time the task would take you and what your hourly rate is yourself. If what needs to be done is going to cost you more to do it, consider outsourcing the job.
6. You Need to Know Your Worth
It’s tempting, and common, as you’re starting your business to take any work you can get. If you need to build a portfolio, this is okay—for a very short time.
Eventually, you need to recognize that what you offer provides a value to those who need it. Do some research into other businesses that offer the same or similar services in your area or online. What are their rates? Yours should be comparable.
The goal is to make a profit. When you take on a job, you should know about how long it will take you. Before you accept a client, divide the hours by what you’re charging and subtract taxes. Is it really worth the work?
As you become more successful, you can cherry pick the jobs that are the most enjoyable to you and the most lucrative.
7. Your Health Needs to Take Priority
In most cases, there are no sick days in self-employment. If you’re not working, you’re not making money.
Since your livelihood depends on you being at your best, making time for your wellness is more important than anything. Both your physical and mental health are crucial.
Find a way to squeeze in physical activity every day and plan for healthy meals. It’s an investment in your body that will pay off exponentially!
Conclusion
The reality of being self-employed is usually quite different than the daydream. When you’re aware of the drawbacks, you can be prepared for them and enjoy the benefits of working for yourself!
