Working for yourself can sound like the ultimate dream job—from setting your own schedule to selecting your own assignments, you’ll enjoy a type of freedom it’s hard to gain while working for someone else.
However, this flexibility can come with some disadvantages. And if you’re considering going into business for yourself, it’s important to understand exactly what’s at stake. Below, Kayricka DuPree explains the pros and cons that can come with self-employment so that you can make the most informed decision possible.
Benefits of Working For Yourself
Many of the top benefits of self-employment involve flexibility: flexible hours, flexible work locations, and the ability to take on or turn down work at will.
Eliminating the Commute
The average worker commutes nearly an hour a day. Though self-employment doesn’t necessarily translate into an entirely remote job, it can go a long way toward cutting down your commuting costs. Gas, wear and tear on your vehicle, parking, and other commute-related expenses can add up quickly.
Creating a Flexible Schedule
A second advantage to self-employment is being able to choose your working hours. Whether you’d like to stick to a more typical 9 to 5 or want to work during the times of the day you’re best able to focus, there’s no wrong answer—and if a particular schedule isn’t working for you, you’re always free to change it.
This flexible schedule can also help you work around your household needs—for example, you may be able to eliminate childcare expenses by working opposite shifts from your spouse.
Choosing Your Own Work
When you work for someone else, you generally don’t have the freedom to turn down the assignments you’re given. But working for yourself means you can choose the work you do—and, sometimes more importantly, choose the work you don’t do. Whether a particular assignment is overwhelming, overly difficult for the quoted price, or just doesn’t sound appealing, there’s nothing to stop you from walking away and focusing on other work instead.
Potential Drawbacks of Working For Yourself
These advantages can come with some tradeoffs. Many entrepreneurs find that the advantages of self-employment significantly outweigh the drawbacks, but the calculation will be different for everyone. After considering all the factors, engage in your own balancing test to see whether the potential drawbacks can be overcome.
Unpredictable Income
One of the biggest challenges for self-employed people—regardless of industry—is no longer receiving a regular paycheck. Though you may ultimately earn more through self-employment, it can often involve a “feast or famine” mindset.
It may also take you a while to reach the point where your business is self-sustaining. The earliest stages of self-employment often involve prospecting for clients, marketing your business to potential customers, and forming partnerships—not necessarily doing the work that helps you earn money. It’s important to anticipate this when you’re developing your self-employment plan so that you’re prepared to weather leaner times.
Trouble Finding Work or Clients
Whether you’re running your own restaurant, freelancing, or consulting, your self-employment success will largely rise or fall based on your client base. If you don’t have enough clients—or if your clients don’t have enough work to keep you busy—you could find your income lagging.
On the other end of the spectrum, accepting too many client demands could leave you with little time for a personal life. No matter how excited you are about your new business, it’s important to commit to work/life balance to prevent burnout.
Isolation from Others
Although working for yourself can improve your quality of life in many ways—reducing or eliminating your commute, providing you with schedule flexibility, and allowing you the discretion to take on or refuse certain assignments—it can also be isolating. Even if you find yourself regularly communicating with clients, customers, or employees, you may not be able to share professional setbacks with them or ask their advice in growing your business.
To avoid isolation, research entrepreneur or business trade groups in your area, mentorship programs, and other resources available for self-employed people. Attending events with others who work for themselves can help you expand your network and discuss the challenges you face with those who best understand them.
Lack of Accountability
When you work for someone else, you’re generally part of an organizational structure that can provide an outside source of accountability—from performance reviews to metrics that can help keep you on track.
But when you work for yourself, this accountability is no longer external, but internal. To truly succeed in the self-employment world, you’ll need to be disciplined and diligent enough to consistently set and reset goals and monitor your progress.
About the Author:
Kayricka DuPree is the CEO of Evolve & Elevate, Inc. The company is headquartered in Atlanta, Georgia. She has built a career around her highly effective management experience and her broad expertise in finance, logistics & operations, business modeling, and human resources. Kayricka graduated Summa Cum Laude with honors from MIT where she held a double major in finance and human resource management. She is known for her strong talent in operations and logistics management.
