Every rose has thorns to go with it and every coin has two sides. That is the nature of most aspects of life. So, before you give that “I resign” note, consider the cons of self-employment and be sure that that is what you want, let us look at the disadvantages of self-employment.
Paying more taxes:
As a freelancer, you normally end up paying a little more taxes as compared to when you are a corporate employee. Apart from that, you also are responsible for filing your tax returns and are liable for penalties if you submit late. As an employee, that is the job of the organization.
No more paid leave:
In the world of self-employment, the days you are not at work are not paid for. So, if you decide to take a break, you are also taking a break from earning. As an employee, you have the luxury of getting paid when you go on leave. You need to constantly remind yourself that as a freelancer, there is nothing called paid leave.
Multitasking all the time:
As a freelancer, you package all the roles of a business into yourself. The responsibilities of looking for work, doing the work and billing for it are all yours; you are the manager, the supervisor, the operator, the messenger, the accountant and so on. More often than not, you will end up hiring a helping hand as all these tasks begin to overwhelm you.
With employment comes a regular pay that you can bank on one hundred percent. As a freelancer, there is nothing like end month. Projects can be erratic. Some months may bring a lot of work and others may be totally quiet. You may sometimes, within a very short time, earn enough to last you several months but other times, the dry spell may also last for months. You therefore need to be ready to face the unsteady income flow and plan your finances for fat and lean times.
You are Socially isolated:
Being on your own comes at a price of being socially isolated. If you are working alone then there would be no social gatherings like that of corporate jobs. There will be no social contacts or friends that you could make through your workplace. It might get a little lonely after a while and you might begin to miss the charm of working with a huge team and the celebrations that come with it when celebrating milestones in your project. Working alone might achieve your milestone but celebrating with yourself is not that inviting and exciting!
Distractions at home:
Before getting comfortable working from your home, you might want to think about the various distractions that come with it. If you have children, then their running around and the urge to play with you will distract you. Your spouse may need emotional attention now and then, your helpers may distract you as they go about doing the house chores and so on. Your door bell will robe you concentration as neighbors, relatives, vendors and utilities meter readers come calling. This way, you may end up solving your personal issues more than your work issues.