Please list your pros and cons of employed vs self employed
Discussion
I have a good job that i enjoy, but hate bits of it. The bits i hate are getting worse.
I have a good idea for a change of career and a small business. I can afford to set it up.
I can't really go into specifics on here, but as a general discussion, has anyone here done this and if so, what have been the advantages and disadvantages? Not just financially but psychologically, domestically, etc?
I have a good idea for a change of career and a small business. I can afford to set it up.
I can't really go into specifics on here, but as a general discussion, has anyone here done this and if so, what have been the advantages and disadvantages? Not just financially but psychologically, domestically, etc?
It's freedom v loss of security. For me the freedom was worth far more than the perceived loss of security but for others it isn't, everything does become your responsibility and every decision becomes your's to make, I love that but others don't.
Of course the loss of security is an illusion, once established in many ways you can be more secure in your own business, after all nobody is going to sack me or make me redundant.
Of course the loss of security is an illusion, once established in many ways you can be more secure in your own business, after all nobody is going to sack me or make me redundant.
Siscar said:
It's freedom v loss of security. For me the freedom was worth far more than the perceived loss of security but for others it isn't, everything does become your responsibility and every decision becomes your's to make, I love that but others don't.
Of course the loss of security is an illusion, once established in many ways you can be more secure in your own business, after all nobody is going to sack me or make me redundant.
Thanks for the reply, yeah this is one of the aspects i'm considering. My career is as secure as one can be, but is still subject to whim. It's become more so in the last couple of years.Of course the loss of security is an illusion, once established in many ways you can be more secure in your own business, after all nobody is going to sack me or make me redundant.
I'd bury the notion of "being your own boss". What happens is everyone becomes your boss and you have to determine which of the bosses are the right ones to listen to - some of your bosses may want things that may result in less profit so should be ignored; they'll sack you but the other bosses will continue to want you and hopefully throw more money at you!
Hoofy said:
I'd bury the notion of "being your own boss". What happens is everyone becomes your boss and you have to determine which of the bosses are the right ones to listen to - some of your bosses may want things that may result in less profit so should be ignored; they'll sack you but the other bosses will continue to want you and hopefully throw more money at you!
Cheers Hoofy. One thing i have heard is to stick to your quotes. If you quote too low that's your tough luck. Also, If people dont want to pay the price, dont be haggled down.All stuff to think about.
Not answering the question really but if someone says, "That's a great idea, I'd use your services." don't count that as a reason to start your business until you see a cheque with their signature on it in your hands (or a signed contract where relevant). There are plenty of positive, well-meaning people out there who won't actually give you their money when push comes to shove.
I suppose that's covered by "don't count your chickens until they've hatched".
And learn about marketing for your sector. Everyone likes to hate marketers and sales people but all good small business owners are marketers whether they admit it or not. If you're not, you're unprofitable. So, you get business by word of mouth? That's a marketing strategy right there - you made a marketing decision, you market to your clients in such a way that they want to tell others.
I suppose that's covered by "don't count your chickens until they've hatched".
And learn about marketing for your sector. Everyone likes to hate marketers and sales people but all good small business owners are marketers whether they admit it or not. If you're not, you're unprofitable. So, you get business by word of mouth? That's a marketing strategy right there - you made a marketing decision, you market to your clients in such a way that they want to tell others.
Edited by Hoofy on Sunday 15th September 09:46
Once you start your own business you have to juggle a lot of different roles as you're suddenly forced to become .... Head of marketing, Head of IT, Head of buying, Bookkeeper, Stock controller, etc, etc, etc.
Taking on all of roles required to run your own business can become very, very stressful and very, very time consuming - more especially if you personally fall short in any of them.
Taking on all of roles required to run your own business can become very, very stressful and very, very time consuming - more especially if you personally fall short in any of them.
VinceFox said:
I have a good job that i enjoy, but hate bits of it. The bits i hate are getting worse.
I have a good idea for a change of career and a small business. I can afford to set it up.
I can't really go into specifics on here, but as a general discussion, has anyone here done this and if so, what have been the advantages and disadvantages? Not just financially but psychologically, domestically, etc?
Setting up and running a business will change you more than probably anything else you will do. For the better mostly, but it will also make you harder. I remember when I started my first business and being genuinely terrified about situations, particularly financial ones, that today would seem less important than whether or not I should have a second espresso.I have a good idea for a change of career and a small business. I can afford to set it up.
I can't really go into specifics on here, but as a general discussion, has anyone here done this and if so, what have been the advantages and disadvantages? Not just financially but psychologically, domestically, etc?
You need also to understand that your first business is unlikely to be your last. Hopefully this will be because you've sold the first for millions and are starting a second or third. More likely because the first one failed. But failure, in this sense, is like falling off after your first wobbling ten meters without stabilisers on your bike, it's an important part of teaching you skills that will stay with you forever.
When you have built and are running a successful business it is an empowering feeling. Knowing that you're a really successful employee is meaningless, knowing that you have built a profitable business makes you walk just a little bit taller.
And a word about security: When you are an employee, for the most part your financial wellbeing is dependent upon your employer retaining your services. If you are dismissed, or the company folds, your income can stop almost immediately. All of it. When you run your own business sooner or later you build some firewalls into the picture, a separate limited liability division here, an investment there, some commercial property perhaps. If something happens to the main business, chances are there will be other streams of income to tide you over until you can regroup. It's also much easier to predict that the ship is about to hit an iceberg if you're the captain than if you're shovelling coal in the engine room.
The one big regret many owners have is that they didn't start young enough. So if you're going to do it, do it as soon as possible.
Squiggs said:
more especially if you personally fall short in any of them.
Definitely.1) The marketing you do now may reflect on your business in 1 to 6 months' time (dependant on sector).
2) Don't forget to make backups! Think of What ifs? What if your HDD fails? What if you cannot access the internet from home? What if there's a house fire? What if your toddler uses the CD drive to store toast?
Perec said:
Setting up and running a business will change you more than probably anything else you will do. For the better mostly, but it will also make you harder. I remember when I started my first business and being genuinely terrified about situations, particularly financial ones, that today would seem less important than whether or not I should have a second espresso.
You need also to understand that your first business is unlikely to be your last. Hopefully this will be because you've sold the first for millions and are starting a second or third. More likely because the first one failed. But failure, in this sense, is like falling off after your first wobbling ten meters without stabilisers on your bike, it's an important part of teaching you skills that will stay with you forever.
When you have built and are running a successful business it is an empowering feeling. Knowing that you're a really successful employee is meaningless, knowing that you have built a profitable business makes you walk just a little bit taller.
And a word about security: When you are an employee, for the most part your financial wellbeing is dependent upon your employer retaining your services. If you are dismissed, or the company folds, your income can stop almost immediately. All of it. When you run your own business sooner or later you build some firewalls into the picture, a separate limited liability division here, an investment there, some commercial property perhaps. If something happens to the main business, chances are there will be other streams of income to tide you over until you can regroup. It's also much easier to predict that the ship is about to hit an iceberg if you're the captain than if you're shovelling coal in the engine room.
The one big regret many owners have is that they didn't start young enough. So if you're going to do it, do it as soon as possible.
A perfect summary, completely devoid of scaremongering.You need also to understand that your first business is unlikely to be your last. Hopefully this will be because you've sold the first for millions and are starting a second or third. More likely because the first one failed. But failure, in this sense, is like falling off after your first wobbling ten meters without stabilisers on your bike, it's an important part of teaching you skills that will stay with you forever.
When you have built and are running a successful business it is an empowering feeling. Knowing that you're a really successful employee is meaningless, knowing that you have built a profitable business makes you walk just a little bit taller.
And a word about security: When you are an employee, for the most part your financial wellbeing is dependent upon your employer retaining your services. If you are dismissed, or the company folds, your income can stop almost immediately. All of it. When you run your own business sooner or later you build some firewalls into the picture, a separate limited liability division here, an investment there, some commercial property perhaps. If something happens to the main business, chances are there will be other streams of income to tide you over until you can regroup. It's also much easier to predict that the ship is about to hit an iceberg if you're the captain than if you're shovelling coal in the engine room.
The one big regret many owners have is that they didn't start young enough. So if you're going to do it, do it as soon as possible.
I did it 2 years ago (I'm 29) after 6 years of fearing failure and my only regret is that I hadn't done it sooner.
Regarding your prices. Of course it's important not to be a busy fool but if I could do my first 6 months again I would've worked almost for free just to get the testimonials/case studies/proof of value as they get me way more business than any other marketing. I knew I could massively help a major uk flooring company, so I worked for a month for free, the results got me in a great contract with them and I still use the stats and plaudits today with potential clients.
VinceFox said:
I have a good job that i enjoy, but hate bits of it. The bits i hate are getting worse.
I have a good idea for a change of career and a small business. I can afford to set it up.
I can't really go into specifics on here, but as a general discussion, has anyone here done this and if so, what have been the advantages and disadvantages? Not just financially but psychologically, domestically, etc?
Which bits do you hate?I have a good idea for a change of career and a small business. I can afford to set it up.
I can't really go into specifics on here, but as a general discussion, has anyone here done this and if so, what have been the advantages and disadvantages? Not just financially but psychologically, domestically, etc?
Perec makes some good points and as Hoofy points out, you're always someones b
h!You'll need some good support from those close to you.
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