The Risks of Self-Employment is sometimes ignored. Freedom is something that everyone looks forward to when self-employed. More time for yourself, live life on your own terms.
However, just like the business and financial risks, there are personal and lifestyle risks associated with self-employment.
Now do bear with us here, we aren’t talking about risk to put people off self-employment. We just want you to be aware of the risks so that you can manage them and take advantage of what lies ahead. So let’s get into it!
We will be covering three main topics in this episode
- Personal and Emotional risk
- Lifestyle implications
- Practical suggestion to manage time and risk
One of these suggestions involves you being the key employee in your business. Sounds a bit odd, but have a listen and find out more.
Personal & Emotional Risks
There are many when self-employed. These include
Instability
There is no such thing as a job for life when you are employed. Your employer may not want to see you go, but you may wish to move on. When you are self-employed you appreciate that no customer is forever. Keep in mind that theres no certainty here. So always be on the lookout to create resources and business opportunities in case things start to dry up!
Personal development
Make sure that you plan for that career and personal development and make sure that you’re on top of your game in your business.
Passion
Feeling passionate about your business is a good thing but is not the most important. Just because you love something does not necessarily mean that it should be converted into a business.
Instead, research your business idea, check its viability and make sure there’s a sufficient number of people out there that have got a problem that you are looking to solve. Feeling passionate is important, but passion doesn’t pay the bills.
Workload
I myself am victim to this. This can mean putting off tasks that you don’t enjoy, and we’re talking about tasks that are absolutely critical for your business. This can sink a business faster than anything else!
If it’s a task such as getting a quote out to a client, picking up that phone, updating your accounts and records to get them off to the tax authorities. You must make sure that you prioritise and know that you can’t afford to waste time on unimportant tasks while those critical ones pile up.
Obviously, all tasks need to be done, but prioritisation helps. If you haven’t got the time, think about investing some, energy and money in bringing on somebody on board to help you out.
Lifestyle
Looking back over my 25 plus years of being self-employed, one thing that I can say is that lifestyle is severely impacted both in positive and negative terms. From here on out your lifestyle will not be that of an employee.
Your working hours are going to be slightly different. When I say slightly I mean a lot more.
Most of us starting out won’t have an office space to go to. We’d typically start in a spare room in our house. As for myself, I started my business in my back bedroom.
In the early stages of your business, big office space are not a critical need. Eventually, when things pick up, you can move out of that back bedroom, as I did myself. Though I must say, homeworking does bring its own challenges and risks as well as some potential rewards. Pyjama working certainly does have its attractions!
Practical tips
Some tips I can share with you on lifestyle. Consider having two computer log-ins on your PC or laptop, One is for your business and one for social. Consider applying the same have to your mobile numbers, and remember to turn that phone off. it’s a lesson that I am slowly learning myself.
You might not necessarily do a nine to five, but give yourself a start and end time every day. Schedule breaks, arrange network meetings at breaks or at lunch. Project manage your own workflow plan to make better use of your work hours.
More tips in the podcast!
Takeaway
My decision 25 years ago to make that leap into self-employment is one that I don’t regret. It’s had its highs and lows, I’ve made mistakes, I’ve had risks that I’ve not anticipated. Would I change it? Not one bit.
Would I change how I did that? Possibly.
Keep in mind that where you are in your business cycle and where you are in life is a result of those hazards you’ve experienced. I wish you well in your businesses.
Take action!
Listen to this podcast episode, and learn about more about the Risks of Self-Employment.
Grab a drink, make yourself comfortable, sit back and listen.
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Check out what to include in your work contract
| Job Title | |
|---|---|
| Normal Place of Work | |
| Normal Hours of Work: | |
| • Monday – Friday | |
| • Weekends | |
| • Bank Holidays | |
| • Scheduled breaks | |
| Annual Holiday Allowance | |
| Work resources provided: | |
| • Telephone | |
| • Laptop | |
| • Transport | |
| • Other | |
| Allowable expenses/Pay – What have you budgeted for? | |
| Benefits Package (e.g. what will you do/allow yourself to celebrate what milestones in your plan?) | |
| What other benefits will you have – e.g. Pension contributions, professional development plan. |
Links
https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288
https://play.google.com/music/m/I3pvpztpjvjw6yrw2kctmtyckam?t=I_Hate_Numbers
https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zins
https://www.stitcher.com/podcast/proactiveresolutionss-podcast
https://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/