How to Become Self-Employed
Self-Employment is Fulfilling, but Not without Some Challenges
Feb 19, 2009
Becoming self-employed is a dream most everyone wishes they could make come true. While some people have struck out on their own and have started a small business, others wish they could but don't know how.
Still others are hesitant, doubting they could ever become successful. They begin to look at daunting statistics such as the U.S. Small Business Administration's assessment that 56 percent of small businesses fail after four years.
So how does a person become self-employed, and what does it take to become successful?
Self-Employment Opportunities
In the 1990 film, Joe Versus the Volcano, Joe (Tom Hanks) is trapped in an excruciatingly boring desk job at a run-down factory. Every day is the same – the overbearing, unreasonable boss; depressing office lighting; job insecurity; and a total lack of excitement and enthusiasm.
Many people today would like to free themselves from this horrible fate and become self-employed. Thanks to the expansion of broadband internet and the web, more possibilities have opened up to make self-employment achievable.
Becoming an independent contractor is an option for those who have 5-10 years of experience in a given career field. For example, a graphic designer can opt to contract out his design services for companies who wish to unload some of their design work but don’t want to hire a designer full-time.
Other self-employment opportunities include starting a small business in accounting, law, healthcare, interior design, graphic design, dry cleaning, hospitality/bed and breakfast, advertising, marketing, and the restaurant business. Small business loans may be necessary to start small businesses such as these.
Challenges of Self-Employment
Self-employed workers need to overcome four main challenges: how to start the business, financing, self-employed health insurance, and tolerance for hard work and risk.
The first challenge is how to start a small business. Everyone seeking to become self-employed should visit the U.S. Small Business Administration (SBA) for more information on how to start a small business, how to prepare a business plan, and even take free classes.
The second challenge faced by the self-employed is financing. The SBA also provides information on how self-employed workers can obtain small business loans to get their businesses off the ground.
Obtaining affordable self-employed health insurance represents a challenge as well. Self-employed workers will want to look into becoming a member of the National Association for the Self-Employed (NASE). The NASE provides information on how to purchase an affordable self-employed health insurance plan.
The last challenge to self-employment is tolerance for hard work, long hours, and risk. Even a well-planned small business can fail, so the person must be proactive, energetic, and willing to go the extra mile in terms of marketing their products and/or services.
This is why some self-employed workers choose to run a franchise. The name recognition, business plan, and daily operations are already established; thus, much of the work is already done.
Successful self-employed workers have learned that while being self-employed has its benefits, it also comes with an entirely new set of challenges. But with the right approach, self-employment can be the fulfillment of a lifelong dream to earn money independently.
See related articles, “How to Work At Home,” "4 Websites that Offer Work At Home Virtual Jobs," and "14 Websites that Pay People to Write.”
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