As the economy continues to turn downward, more and more Americans have begun to look for alternative forms of employment. This can be very risky, but incredibly rewarding. If you are sincerely willing to put in the effort, you can make a lot of money working from your home. Nevertheless, there will always be some degree of risk involved. Below, you will gain more insight into the risks associated of being self-employed in this day and age.
Highly Competitive
It is absolutely vital to realize that nearly everything has already been done at least once. This can create a very competitive marketplace for almost all niches. Whether you’re selling shoes or running a local restaurant, you can guarantee that you’ll face competitors regionally, locally and internationally. If you’re unable to rise above your competitors, your business will never flourish. Before getting in too far, make sure you have a sound strategy for upstaging your competition.
No Health Or Retirement Benefits
One of the biggest risks associated with becoming self-employed is the lack of benefits. Once you’ve decided to label yourself as self-employed, you’re going to become responsible for every aspect of your business, your life and your future. You’ll need to manage your money, pay your taxes, and plan for your retirement on your own. The money you dedicate to your future retirement and your health insurance will come directly from your company’s revenue. If you suffer from medical malpractice, it will be your responsibility to find an attorney and fight for the money that you’re rightfully owed!
This can make life a little more difficult and you’ll be required to manage your money more efficiently.
Burn Out
Since you’re going to be responsible for every aspect of your business, it is highly likely that you’ll experience burn out at some point or another. Working the same old job day in and day out and become tiresome. This is even worse when you have few, if any, employees to rely on. This is a situation that is very common for the self-employed. If you’re not careful and do not take time away from your responsibilities, they may get the best of you.
Instability
Most people who consider starting a business do not even consider the risks. They only consider the benefits, when they make their decision to become self-employed. While it is true, self-employment offers an array of benefits it also comes with some risks. One of those risks is instability, forcing you to work on several projects simultaneously. Working in the job market for an employer offers immense stability, which is not offered through self-employment.
No Career Growth
When comparing self-employment with working for an employer, you will immediately notice that being self-employed does not offer room to grow your career. Most executives that work for large corporations or Fortune-500 companies started out at the very bottom and worked their way up. Owning your own business will mean that you are the boss, so you have already reached the top of the “career ladder.” However, this isn’t such a bad thing, because you will have the freedom to do as you please, since you are the boss.
