I’ve now been self-employed for over two years, holding down a couple of different contracts (but not overlapping). Having just written out a very large check for quarterly income taxes, the one word of advice I would give anyone considering the same direction is;

The Good?

• - Working out of your house (great morning commute).
• - you don’t have to deal with inner-office politics.
• - YOU decide what hours you work, and when (well, it’s between you and the people paying you).
• - You are in charge of your own destiny (and in large part, your own fate).
• - Self esteem gained by answering to your customers, rather than your employers.

The Bad?

• - Paying your own taxes, which are SUBSTANTIALLY more than normal employed-folks.
• - Finding and securing your own health insurance is damned near impossible at a
• reasonable cost.
• - You pay for EVERYTHING yourself, from printer paper, to computer supplies, to replacement parts, to….. use your imagination.
• - Most of your income has to be put back into the business (or at least tax deductable stuff) in order to keep from getting hit hard every April 15th.
• - There are a LOT of hours and hard work involved.
• - You live with a constant feeling of insecurity and wonder when it will all end.
• - getting back into the real world (full time employment) can be a real hard thing depending on your qualifications as well as the area in which you live.

Some common misconceptions are that when you start working for yourself, it’s easy. It’s not! All of the little things that you always took for granted such as benefits, tax management and so forth can really take a toll on both your sanity and stress level. You also end up essentially dedicating your entire life and all your money to your daily struggle for income and there are never any guarantees that it won’t end tomorrow. It takes a lot of drive, and a lot of talent to succeed, otherwise, EVERYONE would be self-employed and the world would be run by “nano-contracts”.

If you can handle what I feel are the ups and downs, welcome to self-employed America. If not, stick with what you’ve got. Just my thought of the moment. I like this blogging thing, so there will be more I’m sure.

Wayne Hunt
segwayne.com