The Downsides of Self-Employment

Millions of people are flocking to the gig economy and starting their own business. Some people are starting multiple businesses. Others are building niche websites as fast as they can make them.

Side-hustling is the new American Dream.

It's not longer good enough to work a single job for 50 years. Young people are refusing to be stuck in a job they hate for their entire adult life. We're forging our own path.

While this is great, there are some downsides to self-employment in any capacity and you need to be aware of how to handle them.

These are no longer taken out of your check. You now have to pay your own taxes. Self-employed folks typically pay a bit more in taxes than a regular employee.

Make sure to take advantage of any deduction that you can get your hands on.

Insurance, retirement, all of the benefits that made you reconsider leaving your corporate job have gone "POOF". You can still have these things, but it's up to you to research and find the best packages and deductibles that suit your needs. 

Goodbye steady paycheck, hello stress. When you're self-employed, you get paid when you have work, make sales, etc. 

This is one of the many reasons why networking and marketing are so vital as a small business owner. Especially when you're just starting out, you'll want to invest some time and energy into mastering these techniques.

If you thought work ended at 5 PM when you work for yourself, you would be wrong. Sure, once the business takes off, you can work less and enjoy life a bit more. But when you're first starting out, be ready to grind. You'll eat, sleep, and drink your company. It is and will be your life.

You won't be getting a paid vacation when your work for yourself. This is kind of a good thing. In the beginning, you won't be able to take any time for yourself anyway.

Despite the above issues, I wouldn't have it any other way. I love being self-employed. 

If these issues bother you, you can always get a part-time job with some benefits or keep your day job until you're sure the company is about to take off and all of your ducks are in a row.

Be careful. This working for yourself thing is highly addictive, despite the disadvantages.

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