Starting as self-employed: advantages and disadvantages

Although starting a business is an exciting thought, if you’re thinking of becoming self-employed there are many things you need to consider. Yes, there are some great advantages of being self-employed, but you will also have to consider the disadvantages.

Here’s some options to weigh up and be prepared for:

Being your own boss

Being self-employed will allow you the freedom to be able to set your own working hours and fit your work around other commitments. You’ll also have more control over the work you take on, where you work and any decisions made.

However, there can be disadvantages to being your own boss. This could come with added stress, longer working hours and a less defined split from working life and home life.

Regular work and income

As a freelancer, you have the opportunity to make more money than you would in a salary paid job. Being in charge of your own income can boost your motivation to work harder and you’ll also have more control over the work that you take on.

But, making money comes with hard work and determination. Unlike a salary paid job, there is also no guarantee of a regular income at the end of every month. Every month will be different and you need to be prepared for this.

You’ll also need to be prepared to make more provision to cover holidays, sickness etc where no money will be earned.

Paperwork and admin tasks

Besides carrying out the work, admin tasks and paperwork are crucial to running a business. Being your own boss means you now have the responsibility of sorting out your own paperwork and admin.

This does however mean that you will have a better understanding of the money coming in and going out of your business.

Hiring an accountant or bookkeeper can help with the task of paperwork, taxes and accounts. There are also many different types of online software available specifically designed for entrepreneurs. If you need any help or advice with this please get in touch.

Although there are many other elements of being self-employed, these are just a few to think about. Although there are advantages and disadvantages, each individuals wants and needs are different. If you’re thinking of becoming self-employed and you need advice or assistance, give us a call on 01268 770099.