Three Important Things You Should Know About Being Your Own Boss

While government statistics indicate that self-employment may not be as popular as it once was, Forbes notes that there are about 22.5 million non-employee companies in the United States. Self-employment has much to offer many people, including flexible work hours, the ability to be one's own boss, job security (as no-one can fire you, demote you or lay you off unexpectedly) and lucrative earnings.

At the same time, it is important to note that there are not only many opportunities are also various pitfalls. Many self-employment ventures do not work out as planned and will not provide benefits such as health care, paid sick leave and holidays, etc. What is more, Forbes goes on to note that self-employment does not necessarily mean that one will earn "big bucks", as about 80% of all nonemployee companies earn $50,000 or less a year.

Following are three important things you should know about self employment and what it has to offer. As you carefully consider these facts, you will see if this is the right part time or full time job option for you personally.

Part-time vs. Full Time

Those who already have a job will need to decide if they want to quit their job in order to become fully self-employed or work only part-time as a self-employed job.

Your decision will likely depend on how much time you will need to invest in your new line of work. Some self employment opportunities require a great deal of time, while others are part-time and can easily be fit into your schedule. In fact, you can even engage in several part-time self-employment ventures.

However, because self-employment is rarely financially lucrative from the get-go, you may want to hold off on quitting your full time job until your venture takes off. This particularly holds true if you are getting on in years and/or have a family to support.

Choosing a Line of Work

There are numerous self-employment options to pick from. Working online is an attractive option for many people, as it does not require a large initial investment of cash. You can write a blog and make money from the ads that Google places on the blog or work as an affiliate marketer for one or more corporate entities. You can also write your own books and sell these online to Kindle, iPad, Nook and other tablet users. Content writing, transcribing and editing also pay well and require little to no investment of cash.

Other job options include working as a freelance interior decorator, events planner, accountant, tutor, baker, wedding planner or photographer. Those who are creative by nature may want to make items to sell online via Etsy, eBay and/or Amazon.

There are several factors you will want to consider when choosing a freelance line of work. Your past experience and educational qualifications will have a large bearing on the type of work you choose; however, you should also do careful research to make sure that there is a market for what you have to offer. Depending on supply and demand in your local area, you may need to either choose another line of work or move to a new city or state.

It is also important to consider your wants, desires and dreams. You may be surprised to find that your hobby has the potential to be more lucrative than the job you spent years studying for in university.

Carefully Analyzing Initial Investment Costs

Once you have chosen a line of work, it is important to carefully analyze initial investment costs. If you have a limited amount of cash, you may need to look into a small business loan; however, you should borrow money with care and only if and when you are certain you can pay it all back.

Kickstarter can be a good way to earn some money, especially if you are creating a new product. However, you may want to avoid asking family and/or close friends to pitch in, as your relationship with them could turn sour if the venture does not work out as planned and you have a hard time paying the money back.

If you have a limited amount of funds, then consider working from home for some time. You can easily hire a business center to handle calls and mail so you do not have to give everyone your home address. If you dedicate a portion of your home to your business, you can get a tax break. What is more, working from home saves you the time and expense of commuting.

Being your own boss can be fun, fulfilling and lucrative, but it is not something that you should jump into without proper research and planning. Consider your options carefully before choosing the type of freelance work that is best for you personally.