UK growth is expected to remain 1.1% in 2019 with very strong signs to improve up to 1.6% in 2020. The uncertainties over the Brexit process is keeping the big investors in wait and watch position. The gap in large size investments is creating tremendous opportunities for the businesses being operated at small scale. The numbers of small businesses even the self employed professionals are getting the advantage of high demand and fewer sources. Amid the uncertainties in political and financial circles, it is the best time to start your own business if you have adequate capital or to start work as self employed.
Challenges for Being Self Employed:
Not everyone wants to work hard and earn for someone else. Nobody wants to depend only on the monthly paycheck that is fixed by the employer irrespective to financial needs and responsibilities of an employee. The self-entrepreneurship is the perfect solution to this problem but it is not necessarily for everyone because the rewards may be highly satisfying but the roadmap to succeed has several potholes to make the journey bumpy. If you can take the challenges to pass these potholes safely, there is no limit to growth. What are the most experienced complex challenges for being self-employed?
No safety net: The most of self-employed at the start tend to be less prepared to face financial crisis. Self-employed individuals often don’t save for retirement. Almost 42 per cent self-employed, near to 50 years of age, are found not concerned for retirement saving.
Financial Management: No one teaches to ride up a rope. Almost 46% of young self-employed and entrepreneurs accept that their financial management is not up to the mark. Regularly review of finances, budget planning, appropriate saving for taxes, debt reduction, paying to self from the earning are the ongoing engaging and complex tasks.
Do-it-yourself inspiration: The most of self employed tend to follow a do it yourself approach because financial saving the cost to aid to others but here they may suffer because of lack of technical /particular knowledge and experience. Knowing something is different than being capable to implement the knowledge to get expected results.
Selling the self: The high numbers of independent professionals have a mentality of ‘work today and sell tomorrow’; certainly, it leads them towards failure in selling on the time and at the earliest. Selling yourself in the competitive market needs rigorous efforts and time but almost 37 per cent self employed dislike selling themselves enough and put off the efforts for some time. Interestingly, 51 % self employed accept that they are too busy to focus on selling themselves because of being more focused on completing other tasks.
Advantages of Being Self Employed:
- You can choose working hours
- You can manage personal life better
- You can work with people with whom you feel comfortable
- You get rewards for putting in more efforts
- You can turn the passion into a money earning an opportunity
- You can enjoy the varied life without feeling boredom because of same working duties and routine
- You get opportunities to convert your creative concepts and other innovative ideas into earning
- You help the people in getting a job by employing the assistants
- You can make a solid stand with your own ideology
- You enjoy the sense of self-fulfilment
Disadvantages of Being Self Employed:
- You may pay more tax in comparison to being an employee
- You miss paid leaves because you earn only when you work personally
- Multitasking becomes a challenge because you have to do various tasks simultaneously
- Unsteady earning because of losing getting the clients or projects
- Socially isolated because you work alone without having a team like in a corporate office
- Loss of financial benefits provided by employer
- No more corporate insurance cover
- Distractions because of family members or friends
- 24/7 working often makes you psychologically tired
Is the Self Employment Right for You?
Self-employment in the UK is accounted for almost 15% of labour market in 2018; it is up from 12% in 2001. During this period, the numbers of self employed professionals aged 16-24 years have increased by about 74%. Being a self employed is a challenging decision; the above-mentioned advantage and disadvantages may help you decide right in either way. Choosing between the two options on the basis of benefits and disadvantages is easy but you must assess your capabilities also to confirm whether being self employed will be good for you for long-term or you will have to come back to employee status after some months or years. Here is the checklist for introspecting:
- You wish flexibility in working schedule
- You want more freedom to implement your ideas
- You don’t like supervising others
- You have passion to do that you want
- You are good listener
- You can decide quick and right
- You have social support
- You are disciplined towards the professional duties
- You are able to separate personal life and professional life
- You can adjust with flow
What Are the Top Ideas For Being Self Employed?
You can be self employed in almost any sector; selection depends upon your qualification, experience, interest, career goals, funds available, available working hours, location etc. The most popular self-employed jobs include writer/author, copywriter, SEO consultant, website auditor, mobile App developer, counsellor, yoga- fitness trainer, web developer, translator – transcript writer, actor/musician, photographer, artist/designer, tutor, consultant, wedding planner etc. There are numbers of portals and magazines that publish the requirements of experienced self employed for different projects; success depends upon the delivered excellence and satisfaction to end user.
Most of the self employed work in a personal capacity but it is also true that the funds are required to meet our financial liabilities from day one. Earning equal to the wage in same capacity needs time and patience. During the period, you face uncertainties also because of different reasons; don’t let your confidence loose. You can get low priced financial support from the Govt., banks, credit unions and direct lenders. Innovate UK Smart grants, Growth Showcase, Small Business Research Initiative (SBRI), Research and Development Tax Credits, HMRC and the Department for Work and Pensions (DWP) should be your hit areas to start your journey with adequate support.