More Problems Associated With Being Self Employed
Do you have the right personality to be self employed? If you are determined, driven to achieve your goal, and able to keep your vision in the crosshairs at all times, then you will most likely be on your way. If less than complimentary clients and even those who harshly criticize your ideas do not deter you from trying, but perhaps are actually spurring you on to try even harder, then you are most certainly on your way to success.
Yet what about the financial ability to see it through are you ready? Can you weather an equipment failure, loss of data, and the need for upgraded equipment without having to resort to using your personal credit cards? Are you able to survive if one or more client do not pay you one time but leave you hanging for a few months? If you answered yes to the first two questions you may be well on your way to self employment, yet you are not quite there! There are still some problems associated with being self employed that you need to be aware of before bidding farewell to your boss.
Perhaps one of the biggest fear factors is the IRS. These initials are sufficient to drive the fear of doing business into even the most hardened entrepreneurs, and you may be no exception. After all, you will need to be meticulously organized and instead of only paying taxes once a year, you will find yourself at the taxman office every quarter.
Furthermore, you will need to be prepared to pay your Medicare and FICA and up that point in time of being self employed, it was your boss responsibility to do so. Before dismissing that guaranteed paycheck, make sure you will be able to traverse the narrow path the IRS has set forth for the self employed.On a personal note, self employment for those with family is fraught with another set of problems. A steady paycheck keeps a family well supported and many money worries at bay, while self employment may be more akin to times of feast or famine.
Are your family members willing to help you achieve your dream of being self employed? Do they understand the implications of no longer being able to count on the bi-weekly direct deposit in the bank account? It is imperative that everyone involved knows what the changes will mean and get on board with you. Failure to paint an honest picture will result in misunderstandings, feelings of betrayal, and such an increase in strife that you will find yourself scouring the help wanted ads simply to keep peace in the family. Sorting this out ahead of time ensures that everyone is on the same page and ready and willing to support your dream and perhaps even make it their own!
The dream of being successfully self-employed is quite possibly innate to anyone who is employed. The idea of having the artistic freedom necessary to create winning marketing campaigns is probably one of the most often cited reasons why an employee would much rather prefer to be their own boss. Another reason is the fact that the relationship between employer and employee has broken down at some level and the employee realizes that certain needs have not been met and most certainly will remain unmet while in the employ of the company.
Yet self employment itself is a bit of a double edged sword and not everyone is cut out for this mode of earning a living. If you are contemplating this step so as to work from home and throw off the shackles that corporate employment has become to you, think long and hard if you are truly ready.There are a set of problems associated with being self employed, and perhaps the biggest obstacle a novice faces is his or her own self.
Having a dream is easy; yet making this dream a reality demands a certain level of self discipline. Some personality types are not able to transit from reporting to a boss to reporting to no one yet remaining just as driven. Additionally, some personality types that benefited from the buffer the employer presented when it came to relationships with clients or customers, will sorely find their patience tested when a new client harshly criticizes the marketing strategy you present to them.
Especially if you are in an artistic field, some of these criticisms could feel like personal attacks or even personal rejection, making this form of employment almost harder than working for someone else. The second problem you will face is the question as to who will bankroll your endeavor. After all, it is not enough to have a great idea.
You probably also have bills, a family to feed, and if nothing else the daily needs that have to be fulfilled. The number one challenge associated with this step is the fact that many a newbie will use credit cards to get set up. Yet the problems do not end there.
How much liquidity you have at the onset will also determine your overall success since it dictates whether or not you can live with the fact that one client is taking an extraordinary long period of time to finally pay you. If one or maybe even more slow clients spell financial trouble to such an extent that you have to touch your retirement savings or home equity, you might not yet be ready for self employment. It is important to begin being your own boss from a position of strength, not weakness.
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