To be counted as self-employed a person will typically work as an entrepreneur, freelancer, contractor or consultant. Rather than being employed they work for themselves. For most the chance to be their own boss offers a wide range of benefits, opportunities and obligations.
The question as to why someone would choose self-employment rarely needs to be answered. From working remotely, setting your own wages, hours and remaining in full control, being just some of the reasons.
Being self-employed is seen as a privilege, giving way to the typical constraints of working as an employee. No more being paid a set wage, working extended hours, meeting endless deadlines, amongst political chaos.
Whilst it doesn’t come without challenges the figures are on the rise with more people turning towards self-employment. In the UK alone, 2019 shows an increase reaching 4.93 million people, 188,000 more compared to the previous year. This equates to 15.1% of people in employment.
The statistics below, show the percentage of self-employed workers by region. It’s fair to say that within these figures not everyone will be making the choice freely. With some economic climates forcing people to work for themselves due to higher rates of unemployment.
Whilst self-employment is not new, the prospects of starting up a business is still very much on trend. What used to be limited to the IT sector, now spreads out across many different markets. From manufacturing, agricultural, retail and most recently marketing.
Characteristics and Traits
To make a success of being your own boss you need to adopt certain characteristics. These relate to being confident in your abilities, able to self-motivate and hold a strong personality. Learning to hit the ground running, working under pressurised conditions and tight timescales is a must.
Networking and the ability to sell yourself are key traits. Building a strong network will create chances of securing your next contract. Like any other company, you will need a brand. In the case of the self-employed your identifiable brand is yourself. How far you take this is ultimately your choice. If you possess a self-driven nature you could expect to do very well.
It is widely considered that being self-employed means you can do what you like, however most people stay in line with what they know. Understanding your skills and strengths can help towards making your journey a success.
Opportunities
The skies the limit is a fitting description of the opportunities open to those choosing to work for themselves. Having the chance to do something you are passionate about, as opposed to working in a permanent role, pigeon holed into stereotypes. The job title dictating what you can and cannot do.
There is the chance to grow, learning new skills towards better paid work or to complete a qualification in a chosen field is an exciting prospect. As is being in full control of your own career. Setting your pay in line with your skills as opposed to being forced into salary bands or competing with others for promotions.
Benefits
If you were previously employed you will know the freedom that can be experienced by being your own boss. Not being tied down to a desk, working the dreaded 9 to 5 or commuting to and from the same place provides a welcome change.
Instead you can improve your quality of life, choosing your own hours, deciding when and where you work. The chance to work aboard, to see places, meet new people and experience different cultures whilst getting paid becomes a reality.
As does earning an unlimited amount of money. No more set wage, instead you can increase or decrease your salary based on the job at hand or in line with competition. Being able to offset expenses means you will see more of your pay packet.
Obligations
Apart from the obvious work at hand certain tasks need to be considered. From administrative, marketing, financial and legal. Multitasking becomes a necessity, so does the understanding of what you are obligated to do.
Creating accurate invoices for time worked is an obvious example. Submitting tax returns, calculating VAT and paying corporation tax are other important tasks. Ensuring your company remains legal is a key concern for anyone who is self-employed. Hiring an expert to give you advice is the safest way to know you are covered.
Digital World
Good operational management is required to build any successful business. In today’s digital world automating administration is easy, saving time and money. There are many different systems available to help with accounting, bookkeeping and tracking time. Social media offers the chance to expand networks by connecting with likeminded people.
At VERITAS we have taken digitalisation to a new level, offering self-employed inspector resources to the Energy Market. Using our unique QA/QC platform, resources can apply for contracts, dictating where and for how much they work. The system offers workflow management incorporated to make completing compliance information easy. With a few simple clicks Inspectors can upload their CV putting their name, in front of clients awaiting to award them with their next contract.
Conclusion
For those sceptics there are downsides but these are seen as minor with the benefits far outweighing the negatives. Being self-employed provides a more than satisfactory way to earn a living, making the day to day more manageable. The ability to grow and learn, whilst making money that matches skills is more than a privilege it has become the modern way to work.