The Disadvantages of Self-employment

A lot of people read this blog looking for inspiration. Sorry I can't provide that here. A dose of reality will be better for you, especially if you're trying to start a business. I don't mean to whine, but sometimes telling the truth comes off that way.

Unemployment limits choices, or it forces us to make decisions we might not have otherwise made. Though the thought of being in business for myself always held some appeal for me, I never pursued it when I could pull down a paycheck. Now, with the paycheck gone and jobs -- even cruddy jobs -- nearly impossible to find, I have no choice but to employ myself. It's either that or starvation.

I've been at this for almost a year. Here is what you can expect if you go into business for yourself:

  • You'll never have enough money, certainly not at first. Meeting the day-to-day expenses is a challenge when the revenue is not steady.
  • Collecting money that you are owed presents a challenge. If your client is a big company, nobody seems to know where the check went after it finally gets cut. If your client is a small company, they always hope that their smile and pleasant manner will keep you happy until they come up with the money. Either way, you end up waiting and waiting and waiting, stressing about money.
  • You'll get bullied. Just yesterday I gave three web domains away -- domains that I paid for -- and when I asked my former business partner for the $30, he blew a gasket, threatening me, so I transferred the domains. Maybe he'll give me the $30 at some point, maybe not. All I know at this point is that he has the goods, and I'm out $30. I feel like I did in third grade after forking over my lunch money. This is just one example. It's a dog-eat-dog world, and your clients, partners, and competitors will all mess with you. It sucks. I hate it. People are such jerks. It amazes me to think that I used to like people for the most part. Self-employment is turning me into a misanthrope. (Not really, but it seems that way some days.)
  • You will put in extremely long days.
  • Your good days will be great and your bad days will be awful. This has always been the case for me, but it's definitely more intense now that I'm involved in the drama of trying to keep a roof over my head without a steady paycheck.
    • I suppose I could go on, but most people will probably not even read this far. Bravo to those of you who did. You are tops in my book.

      The bottom line for me is this: I would not be self-employed if I had any chance of getting any kind of job. I'd rather work at McDonalds, but they didn't hire me. (Yeah, I applied.) As an employee, laws protect you from abuse. As a business person, laws only work in your favor if you have the resources to hire good attorneys.

      Now I'm off to do some work for which I may or may not be paid.

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Comments

chuck's picture

Don't get the wrong idea

There are advantages too. I'll go into those another time.

When life hands you sh*t, make fertilizer.

Keep Smiling!

You are right... people do suck!

But keep your chin up, the beginning stages of a new business are most certainly the hardest. Hopefully things will continue to get better and therefore easier for you!

And... if all else fails, eat ice cream. I swear it can make almost anything better!

chuck's picture

You're right about ice cream...

... it's an indulgence I really can't afford now, though, believe it or not.

Smiling I can do!

When life hands you sh*t, make fertilizer.

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