Self Employed Benefits

Disadvantages Of Being Self Employed

Self-employment for some of us is not just another job, it is a way of life and more often than not we ignore the perils and look instead towards the rewards. The disadvantages of being self-employed begin with irregular work hours. When the average office-goer has retired home at the end of a hard day's work, the independent businessman must sacrifice sleep in order to complete the assignment on his desk. Meeting deadlines and maintaining the quality of the final product are some of the primary concerns. Consequently, some major lifestyle decisions and sacrifices are required. The sweet taste of success is the fruit of a meticulous and tireless work ethic for the individual.

An independent venture in its embryonic stage needs a significant financial boost to set it in motion. But, the figures required to achieve and sustain it are enormous and are out of reach for the average middle class man or woman. People who want to be self employed are forced to turn to banks or moneylenders for a loan. A co-signer or a collateral, for example a house, is required to secure such a large sum of money. This along with a soaring interest rate on the loan only adds to the ever-increasing risk factor.

The disadvantages do not end here as the self-employed business scheme is riddled with irregularities. The most damaging of these is the fluctuating paycheck at the end of the month. The reason people shift to the home business model is absence of a salary cap. We dream of money arriving in uncontrollable torrents, however, in reality the average self-employed man is well acquainted with long, dry periods. The focus at this point has shifted from maintaining and increasing profit margins to reducing losses.

The plethora of disadvantages continues to build with the lack of a retirement plan, no affordable health insurance scheme coupled with odd jobs like bookkeeping and filing quarterly taxes. However, an accountant or accounting software can lessen our burden. Self-employment often necessitates the juggling of tasks varying from marketing to sales duties, from financial structuring to accounts, from administrative duties to personal management tasks'or all at once. Also, one must be prepared to tackle and satisfy a whole host of personalities, including customers, employees, bankers, accountants and even lawyers. There is also the unpredictable illness, accidents or injuries. We should remember that there is no room for error and no excuse for a broken down machine. One false move on the part of the entrepreneur could cost him his entire client base.

If everything ground to a halt, the shrink in supply is noticed first and consequently demand begins to dwindle. So how do we pay our bills and feed our children without an employer benefit package? At most, the self-employed individual can depend on a backup fund for a rainy day. Unfortunately, in the event of prolonged illness or lack of business this fund gets depleted. He is left with no other choice but to sacrifice his piece of the pie to clear his dues. Although the self-employed man dreams of conquering the high seas, the dream often ends with him salvaging a sinking wreck.

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