Is it More Lucrative to be Self-Employed than Employed?

There are many people that like the idea of being self-employed. They like many of the advantages that come with being self-employed, but perhaps do not really think about the disadvantages. It is a good idea to also think about what the advantages are of being employed compared with the disadvantages as well.

Own Boss

One of the big attractions of being self employed is being your own boss. Many people think that they will feel much better without someone else telling them what to do. Of course, it can be hard, particularly if you do not like your boss, but you need to bear in mind that you will need to have self-discipline to motivate yourself to get the work done. They will be no one there to set your deadlines for you and to pressure you to produce the work – it will be up to you to do this yourself. Some people are very good at this but others are not so good and you have to decide whether you think it is something that you will be able to do or not.

More in Control of Money

It can also be an attractive prospect that you will get all of the money from the clients that you work for or sell things to compared with when you work for someone else and they get most of the money. However, if you are running it, then all of that money will go to you so you might feel that it is much more worthwhile. However, it is worth thinking about the fact that you will also have to pay out a lot of things too, such as insurance and travel, advertising and pension cover and all sorts of things like that which would normally be paid by an employer.

Can Work Any Hours

It can be good to think about the fact that you will be able to work any hours that you wish. If you like working early mornings or late nights or you need to fit the work around your family, then it can be a good thing to be able to work the hours that you really like. However, you may find that this will not necessarily be possible. You could find that you will need to put in a lot of hours because you will be running things by yourself or with a small team helping and that you will need to actually just need to be putting in all the hours that you can.

Can Sell Up

It is a dream of many people that they will set up their own business and then be able to sell it for a lot of money. There are some companies that have managed to do this and it can be extremely lucrative. They can potentially make a lot of money doing it and therefore it is something that others hope that they will be able to do as well. However, it is worth noting that actually there are not that many companies that have managed to be able to do this. There are sadly many more that have actually gone out of business so it is something that you need to be very careful of. You will need to concentrate more at the beginning on making sure that you stay afloat rather than worrying about whether you will be able to build the business up so that you can sell it. Hopefully it will do well, but having the aim to make it successful enough to sell is rather ambitious to be concentrating on right at the beginning.  

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