Hello friends i am glad to be here today to discuss with you the amazing advantages of being self employed.
What is self Employment ?
Self employment is a practice where the person works for he or her self and not under any employer. Here working for yourself can be in the form of freelancing or owning a business.
Below are the advantages or benefits.
The Advantages of Self Employment
1 Control Over All Business Aspects
Tired of being told what to do and how to do it? One of the biggest advantages of self-employment is the control you have over every aspect of the company. or business You decide what your company does. You choose the target audience. You pick the branding elements that make your business unique.
You also have full control over things such as where the business is located and what hours you work. When you're just starting, you might work on your business from home to keep your overhead low. In the beginning, you'll likely spend a lot of hours building your business. That may mean putting in a lot more than the standard 40-hour work week. As your business grows, you may be able to hire managers and other employees to handle more of the workload so you can scale back your hours.
2 Use of Your Skills
You're creating a business from scratch, which means you get to decide the focus. For most people, that means starting a company that focuses on an area of expertise or passion. You get to put your skills and expertise to work in a way that's fulfilling to you. When you work for someone else, you're limited to the scope of your position, even if that means some of your skills aren't being used. That can feel stifling.
On the other hand, as the owner, you can control what you don't do. If there are some aspects of running a business that you don't feel comfortable doing or don't want to do, you can hire someone to do them. You may not be in the market for a full-time employee, but many tasks can be outsourced to freelancers or contract workers.
Ability to Problem Solve Being an entrepreneur may be for you. When you work in a traditional role for another company, you might be limited on what you can actually do when you see a problem or an opportunity to improve something. When you're self-employed, you can put your problem-solving skills to work. You can make immediate changes without going through lots of red tape. And you can see the results of your solutions in real time.
Since you're the boss, you have a better sense of how each decision or action affects the business. You can use that information right away to continue making changes or improving what you have to offer. In a large corporation where you don't have access to all of the data, you might not find out how your efforts help the company.
3 Increased Earning Potential
When you work for someone else, you're locked in at your agreed-upon salary. Sure, you might get a small raise each year or earn some bonuses. And you can apply for a new position with higher pay. But there's generally a cap on what you can earn depending on your career. Even if the company you work for expands or sees a massive increase in profits, you likely won't see a proportional increase in your salary.
When you're the boss, you have a much higher earning potential. Keep in mind it will take you time to build up your income and make your business profitable. And many of the profits get reinvested into the business. But when you reach that point of profitability, your earning potential grows significantly. You may reach a point where you can scale your business to help it grow and earn even more. Some small businesses eventually open additional locations or offer a franchise option to expand. All of these options increase your earning potential and profits.
4 Job Security
Being self-employed comes with certain risks. You don't have a guaranteed paycheck. You don't really know how successful your company will be. Your decisions could make or break the company. But, as long as your company is in business, you do have job security. Unlike a traditional job where your boss could hand you a pink slip at any time, you don't have to worry about getting fired when you work for yourself. You also don't have to worry about getting passed over for a promotion. Knowing you're in full control of your future can be a motivating factor in running your own business.
5 Flexibility in Your Work
A traditional job working for someone else usually requires set hours. Some companies offer flexibility, but you'll still need to put in your time. You get a certain number of vacation days per year and that's it. When you're self-employed, you have full control over your schedule. That means you get to decide when you work and how much you work. The downside to that is that when you're not working, you're not making money since you have no paid time off. But people with an entrepreneurial spirit often crave the flexibility over the promise of a regular paycheck.
If your business is internet-based, you also have flexibility in the location from which you work. As long as you have access to the internet, which is basically everywhere these days, you can work. That means you can travel with your family while still keeping your business running. If you want to live in another country for a few months, you can do that. That location flexibility doesn't work with all self-employment options. For example, if you start a brick and mortar boutique, you likely can't be away for too long, even if you have employees. But you still have more flexibility overall to work how you want.source
6 Improved Quality of Life
Being self-employed isn't easy. It comes with unique stresses and responsibilities. The success of the business lies on your shoulders. But being your own boss also opens you up for an improved quality of life. When you're doing what you want to do, you may feel greater job satisfaction that you could never achieve working for someone else.
You also have the power to structure your work environment the way you want it. You can work from home to eliminate a long commute. Or you can find commercial office space in a part of town where you want to work. Since you create the company culture, you can enjoy an environment that fits your preferences, even if you grow and start hiring employees. For example, if you dislike the politics that often happen in corporations, you can set up your business to avoid that.
7 Tax Benefits of Self-Employment
Do the self-employed pay taxes? Absolutely. And when you're self-employed, you're actually responsible for paying more taxes than you are when you're employed by another company. When you're an employee, the company you work for pays the employer part of Medicare and Social Security taxes. When you work for yourself, you're responsible for paying it.
Even though your tax bill may be higher, you also have several potential tax breaks that can decrease what you actually owe. If your business is based in your home, you may qualify for a home office deduction, which lets you deduct a portion of your mortgage interest, property taxes, insurance, maintenance costs and home depreciation. If you buy your own health insurance and don't qualify to be on a spouse's plan, you can deduct the premiums for your coverage.
You can also deduct certain expenses associated with running your business. Internet, phone and fax costs are included. If you use the same phone and internet for business as you do for your personal use, you'll only be able to deduct a portion of that bill. Travel and business use of your car qualify for tax breaks. You can also deduct meal and entertainment costs if they're business-related. If you go back to school or otherwise expand your knowledge related to your business, you may be able to deduct those expenses.
Another one of the tax benefits of self-employment is the option to deduct retirement plan contributions. Starting your own retirement plan is a smart move as a self-employed business owner. The amount of contributions you can deduct often varies each tax year and depends on the type of retirement plan you choose. But it's a nice perk to save on your tax liability now while you're saving for your financial stability source
8 Potential for Growth and Learning
Self-employment gives you hands-on experience in all aspects of running a business. Working for yourself requires you to be resourceful and may involve doing lots of research on different aspects of business. That includes things such as sourcing materials, managing people, marketing a business and handling bookkeeping. Those skills stay with you as you grow your business, start a new business or even decide to go back to work for someone else.
Owning a business also gives you the chance to become an expert in your field. If you start a computer repair service, people in your community see you as a good source of information. As you continue learning more about computer repair and staying on top of the latest technology, you continue establishing yourself as an expert.
9 Connections With Customers
When you're self-employed, you often handle all of the work, especially in the beginning. That means you get to build strong relationships with your customers. You're working directly with each person who uses your services or buys your products. You get a unique opportunity to get to know those customers, which gives you insight into what they want. That connection can also help build loyalty in those customers to help keep them coming back to your business in the future.
10 Sense of Pride
Growing your own business is often more satisfying than helping another company grow. You don't have to become a nationally known brand to feel proud of what you've accomplished. It's often the little milestones that mean the most when you're self-employed: finding your first client, moving to your first commercial space, expanding to a second location. As your company grows, you can look back to see how far you've come and know it's all because of what you started.
11 Building Something That Lasts
When you first start working for yourself, you might simply want a change from the corporate world or to gain more independence than you can have working for someone else. As your business grows, you're establishing a company that can last. You might pull in other family members to help grow the business. If you have kids, you may pass down the family business to them when you decide to retire. Starting a small business can give you a legacy that lasts.
Conclusion thank you all for reading my post i hope you learn from it