This post was last updated on February 16th, 2021
In these challenging times, with such an uncertain job market, it’s understandable that many of us are looking into the benefits of self-employment.
The job market is changing rapidly and not in a good way. Notwithstanding the tremendous negative effects of pandemics and other black swan events, there are predictable headwinds coming our way.
Over the time horizon, the impacts of automation and artificial intelligence (AI) are advancing at an unrelenting pace. These will lead to fundamental market changes as many jobs will be lost. We should prepare now for these changes.
In this article I’ll delve into the benefits of self-employment. Some of these might seem obvious and some may seem more obscure. I hope they can help you in your decision making process to decide if self-employment is right for you.
1. Total Freedom
Everyone talks about this but it’s crucial. Do you want to have full autonomy over how you structure your day? Do you want to be able to take time off to look after your children when they need it? Or to be there for all their important moments?
What about future travel plans? Would you love the flexibility to choose your travel based on your needs and the best deals rather than on the needs of your employer?
Self-employment, particularly if it’s an online business such as a blog or e-commerce, can give you this freedom. The freedom to take life by the horns, so to speak. This can be life changing!
2. Self-Employment can give you Location Independence
Working remotely is fantastic! We’ve all been turned onto remote working in recent times and it’s become obvious how much better it is. I’ve heard many people lament the difficulty of losing the social nature of the workplace. This is true to some extent but the benefits totally outweigh the disadvantages.
Think how much time you previously spent commuting which can now be productively used furthering your business.
Working remotely obviously isn’t possible with all modes of self-employment. But it’s 100% possible with online business.
Think about how you could travel and still grow your online business. Even if travel doesn’t seem on the cards right now, look to the future and build your life for that possibility right now.
3. Improved Job Security – Yes you heard Right!
We really need to start asking ourselves how much security there is in the classic workplace model. There’s always the possibility of layoffs, industrial downturns and technological impacts which can affect your job. Furthermore, your current profession might be prone to being taken over by technology or outsourcing to other countries.
By creating your own business income streams you are diversifying your risk and also growing the possibility of boosting your income.
Compare this to your salaried job where the only way to increase your income might be promotions, pay rises and bonuses (if you’re lucky). These are all at the whim of your employer and aren’t guaranteed.
Because of these reasons, it might seem unlikely, but you’ll probably have much more security with your own self-employment. Yes that’s right!, because it’s yours.
Self-employment job security depends upon setting up multiple streams of business income which spreads your risk if any of them suffers a downturn.
Of course every person has a different situation, and not everyone is mentally or emotionally suited to self-employment
4. Unlimited income potential
The best self-employment businesses are scalable. Why is scalability so important? Well it means that you can easily multiply the income of your business.
You might grow your revenue through Google Ads or Facebook advertising. To meet the extra demands on your business, you can employ assistants, whether they be virtual online assistants or at your physical location.
By using these scaling techniques, you can literally multiply your income many times and grow quickly. This will involve minimal risk if you’re employing casual help.
This is a huge advantage over a regular job. In a regular job, you usually have very little ability to multiply your income.
5. Build a Valuable Asset through Self-Employment
Ever wonder how people end up as millionaires or multi-millionaires?
Apart from marrying someone rich, It’s usually by one of these three ways:
- Becoming famous in movies, music or sport
- Winning a lottery
- Starting a BUSINESS
Most people won’t persist, take a risk or put in the effort. There’s only a select group who actually make it big. Of the three wealth-building methods above, number 3 – Starting a Business is the most easily achievable.
Wealth-building is one of the most profound and enduring benefits of self-employment.
6. Self-Employment can be Much More Interesting & Rewarding than a Job
Wouldn’t you like to be the one controlling where you are heading, having full creative input and taking control?
This can be inherently fascinating as you make all of the strategic choices on where to allocate resources, how to promote your business and how to serve your customers.
Compare this to the average salary position where, unless you’re a senior manager, you don’t really have much choice as to how your time is allocated
Wouldn’t you rather be in total control of your career destiny?
7. Build Community to Engender Trust
Building community and helping people is one of the most life changing things that we can do. Helping people is incredibly rewarding. It’s amazing!
When customers come back and give you a positive testimonial, it can really lift your spirits and help to drive you on.
There are plenty of ways to build communities in your business. Many of them are totally free:
- Start a blog using WordPress. Members of your community / tribe can comment on your blog posts and discuss current issues.
- Build a YouTube channel around your business.
- Grow a Facebook discussion group.
The really powerful effect of these methods is that your community will start talking to each other and start helping each other with questions which reduces your workload.
8. Self-Employment Takes you Out of your Comfort Zone
Getting out of your comfort zone can be incredibly powerful for your self-development!
Even something like starting your own YouTube channel is going to build your confidence in ways that you can’t even see right now.
The reality is that life is so short, so take some measured chances. Learn a new skill. You’ve got nothing to lose and everything to gain.
9. Online Business Can be Started as a Side Hustle with Minimal Risk
Why not start your self-employment as a side hustle while you are still working your day job?
Most people spend every evening looking at irrelevant social media and TV. Wouldn’t you prefer to be spending that time wisely building a business?
Starting a business doesn’t need to take much time. It’s all about working smarter rather than harder. We live in a time that makes it super easy to start an online business. Previous generations didn’t have this opportunity.
It’s almost like we have a duty to ourselves to make use of them.
10. Self Fulfilment through Self-Employment
Most of us want to leave our mark on this earth in some way. Whether that’s by writing a novel, taking up acting, academia or other means, many of us have that need.
Starting a business can help you to do this. Think of Steve Jobs of Apple, Jeff Bezos of Amazon, Anita Roddick of the Body Shop or Bill Gates of Microsoft. All became household names through building successful business brands. Many went on to become philanthropists giving back so much to the community.
Building a business through self-employment is one of the most likely ways that you can achieve the levels of self fulfilment and happiness that you desire.
Summary of the Profound Benefits of Self-Employment
It does depend upon your individual circumstances, but for many people, there are profound benefits from self-employment. It can give you freedom, security, a creative outlet and help you to build assets for your family.
Going into your own business can take time. It might require a period in the beginning where you aren’t earning money. Accordingly, in some situations you may need to work in a paid job for a while and start your business as a side hustle.
This is particularly true if you need to earn money quickly and you have no capital.
Self-employment does have so many advantages, so perhaps start working on your side hustle right now. If you make good choices, there’s little to lose. Good luck with your business!
Frequently Asked Questions – benefits of self employment
Should I quit my job before I start self employment?
If you’re already in employment it’s often best to start your business as a side hustle. This has a number of advantages. Firstly, you’ll continue to have an income while your business is getting started.
It will also take pressure off the need for your business to earn income in the early days. The third main benefit is that you can road test the business without the need to earn much income.
Which is more secure? A 9 to 5 job or your own business?
While this is different for every person, traditional employment is becoming less secure. Your own business which might involve multiple income streams has the potential to offer you more security.
What’s the hardest part of self employment?
Unless you know other people who are embarking on the same journey, loneliness can be a factor. This can be worse if the people close to you aren’t supportive supportive of your business dreams.
The loneliness of a small business can be mitigated by joining local business groups or online forums.
How long will it take me to start earning an income with self employment?
Most small businesses take some time to earn money. This might not be the case if you’re working as a tradesperson etc. However if you’re doing something like setting up a blog or website, the work is going to be more front-loaded with less income in the beginning.
What’s the most rewarding thing about self-employment?
To many people, the profound benefits of independence and freedom is life changing. This ability to manage your time and spend your life how you want to live it is the best thing.
What should I do if my family doesn’t support my employment goals?
It’s unfortunate if people in your life don’t have the mindset to see the potential in self employment. One option might be to work on your business in your spare time, while working a normal job.