Although you may have enjoyed some of your time as an employee over the years, you might want to change some of your working practices. This may not be an option available to you when someone else makes the decisions regarding your working day. Therefore, it could be beneficial to think about whether working for yourself could be the solution. This can enable you to make decisions based on how you might like to work, as well as the type of service you give your clients.
The effect on your money
You may need to think about the differences between sole trader vs limited company before you branch out on your own. This could alter how you are paid for work, and even the amount of taxes that need to be paid each year. On top of this, you may also be able to prevent yourself from becoming bankrupt should your business not go the way you’d hoped, all due to the above option you chose. You could either pay yourself a set wage, as you would for any other employee you hire, or be able to take money from the business as required. You may also be able to get a reduction in taxes based on expenses, including those for vehicles you use for business purposes, and technologies you use.
Making time for yourself
When you work for someone else, you may be required to be on call, or at a specific location, for set hours each day. This could mean that you need wraparound childcare or that you miss out on certain events in life if you cannot book them off as annual leave. When you work for yourself, it may be a lot easier to block out that time, or work different hours to accommodate your needs. This can also allow you to spend more time on your own self-care, which could help to boost your mental health and keep stress at bay. At the same time, it can also be important to keep promises you have made to clients, as much as possible.
Working for someone else might guarantee a set wage each month, but it can become somewhat disheartening. Company profits may be at a record high, but you might still take the same pay home. Thus, the reward might not trickle down to those doing the actual work. Being able to maximise your earning potential could be important, especially if your living costs have increased. When you work for yourself, you might be able to gain more money, even with needing to cover working expenses yourself. The freedom to earn more can be incredibly tempting, especially if you have the drive to succeed.
If you aren’t happy with your job, or the money you bring in, you may want to consider taking a different avenue to simply finding new employment. It might be hard to get your business going but, in the long run, it could see you achieving far more.