Rewards and Costs of Working for Yourself

Rewards
People seek many kinds of rewards from their careers. Working for yourself may provide these rewards.

Costs
Self-employment also has its costs. When considering self-employment, it is important to be aware of them.
Independence
People who work for themselves have the independence to make their own decisions. They decide what they are going to do and where and how they plan to do it. They decide how many hours they are willing to work and when to take time off. People who work for themselves find that they have more freedom, flexibility, and control over their work schedule and that of their employees. Self-employed people may put in long hours. Especially at first, they may work weekends and evenings. This is when they keep the books and do other tasks that they cannot afford to hire someone else to do. Sometimes self-employed people cannot leave their businesses for more than a day or two at a time.
Personal Satisfaction
Personal satisfaction is another reward of self-employment. Self-employed people get a sense of accomplishment from figuring things out on their own. Personal satisfaction can also come from doing the kind of work they desire, rather than fitting into an established occupation or an established company. Owning a business offers challenges and excitement that working for someone else usually does not. These owners also tend to have more pride in their products or services than other workers. Starting a business demands a large amount of personal energy and confidence. Self-employed people must learn to develop inner trust, good decision-making skills, and strong self-management skills. In addition, almost every business requires the owner to know business management and marketing techniques. Business owners must take responsibility for both the successes and failures.
Social Impact
People who work for themselves gain status and get more recognition than people in an organization who do the same kind of work. In part, this is because self-employed people market themselves to gain more business. However, name recognition backed up with strong work performance creates a valuable professional reputation. Generally, business owners are directly linked to their business. The success or failure of the owner or business impacts the other.  Additionally, self-employment can lead to pressures at home unless they are anticipated and planned for. Asking for support and understanding from family and friends can also help self-employed people weather the ups and downs of beginning a business.
Income
Many self-employed people like to control their own financial future. Owning your business helps you to do that. People who are self-employed are paid out of their business profits. How much you are paid is a direct result of how hard and how well you work. Self-employed people usually invest their personal savings or take out loans to start their businesses. Banks may help, but the self-employed person shares the risks. In addition, it is important to be prepared for income to be irregular, especially in the beginning. A standard recommendation is to have a minimum of six months of living expenses in the bank before starting self-employment.