Is Self-Employment Right For You Prospects - Ac.
Is Self-Employment Right For You Prospects - Ac.
Is Self-Employment Right For You Prospects - Ac.
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Self-employment
Is self-employment right
for you?
Jemma Smith, Editor
December, 2020
Accounting technician
Actor
Acupuncturist
Barrister
Chiropractor
Dentist
Financial adviser
Illustrator
Interior and spatial designer
Life coach
Make-up artist
Musician
Photographer
Private tutor
Sports coach
Web designer
Writer
Self-employed vs employed
A person is self-employed if they work for them-
selves as a business owner or freelancer. They run a
business themselves and are responsible for its suc-
cess or failure.
Benefits of self-
employment
Creative freedom - By going self-employed
you'll be in charge of the decision-making.
You'll have the freedom to explore a number
of creative solutions to problems that arise
and have the satisfaction of seeing your ideas
through to completion.
Independence - As well as creative freedom,
you'll also be able to set your own hours and
fit your work around other commitments,
which o#en leads to an improved quality of
life.
Job satisfaction - Reaping the rewards of
your hard work can be very satisfying, while
you also have the autonomy to do the things
you love most.
Location - Working from home, if applicable,
means that you don't have to worry about
office politics, company hierarchies or an ex-
pensive and stressful daily commute.
Salary - Your earning potential is much high-
er when self-employed - everything is in your
hands, meaning you can take on more work
at various times of the day. Financially, the
sky's the limit.
Variety - As you're in control of your work-
load, you'll have the opportunity to work on a
range of projects with a number of clients and
develop new skills. You'll also gain experience
in the different areas of setting up a business,
including overseeing the finances and admin-
istrative work.
Isabel Sachs
Founder
Disadvantages of self-
employment
Lack of employee benefits - You won't get
sick pay, holiday pay or any other employee
benefit.
Long hours - Your working day may be much
longer and more irregular than someone who
isn't self-employed. Business commitments
may mean that you spend less time with your
friends and family, or struggle to switch off
from work life.
Responsibility - You're in charge of your pen-
sion, National Insurance and completing your
self-assessment tax return - what's more,
you'll pay tax even if your business makes a
loss. The fact that success or failure is down
to you can increase your stress levels.
Social isolation - You'll miss out on the work-
place environment, at least while you're es-
tablishing yourself as a business owner. Not
only can this be lonely, but it's likely you'll
also have to work harder to stay motivated.
Starting from nothing - Establishing your
business and building a client base can be a
long, tiring and at times frustrating process.
You'll need determination to succeed and
perseverance, even if progress is slow.
Unpredictable finances - Your income can be
irregular, especially in the early days. You
could go several months without earning a
profit, and you'll always have to pay running
costs such as rent, insurance and internet ac-
cess.
Skills to succeed in
business
Success as a small business owner largely relies on
the strength of your product or service. However,
you must also possess the following qualities to
thrive:
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