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Self-employment

Self-employment can be a rewarding opportunity to be your own boss, earn more money, enjoy greater flexibility, and gain satisfaction from your own achievements. But it can also include long hours, stress, and low or irregular income.

Types of self-employment

Self-employment can mean

  • Working as a consultant in any field, which involves finding your own clients. Consultants work either at home or in the client's office.
  • Running a home-based business, such as a daycare center.
  • Opening a retail store, restaurant, or other business office.
  • Running a family farm.

Pros and cons of self-employment

Going into business for yourself is a huge decision. Consider the pros and cons of self-employment before making such a big decision.

Pros

  • More control over your future
  • Set your own hours
  • More independence
  • Personal satisfaction
  • Potential success and money

Cons

  • Money needed for startup costs
  • Irregular income
  • Long hours
  • Stress
  • Potential failure and loss of money
  • Extensive recordkeeping and administrative work

Is self-employment for you?

There is no guaranteed way to predict if you'll succeed in self-employment. However, successful business owners often share similar characteristics. Read the statements below. If you agree with most of them, you may have the qualities necessary for successful self-employment.

StatementAgreeDisagree
I'm a self-starter. I don't need to be pushed to start or complete projects.
When I see a problem, I confront it directly.
I'm willing to take risks.
Failure is part of the learning process.
I know who I am and what I can do.
Working long hours doesn't bother me.
I am good at networking or asking others for names of people to contact.
Most people consider me outgoing and confident.
I set my own goals and work at my own pace.
I'm not embarrassed to ask for what I want.
I would feel comfortable working hard to drum up new business.
I am good at public speaking and feel comfortable in front of an audience.
I am able to get my point across quickly and easily.
I don't mind working very hard now for a goal that might be several years away.

Your Next Step

Once you've decided on self-employment, where do you begin? Determine if your business can succeed by researching

  • Market conditions and financial requirements
  • Who your competitors are
  • Who your customers are
  • Future demand for your product or service

Consult Business Resources for Self-employment to get started.