Top 5 Concerns of the Newly Self Employed

July 16, 2008 by Rico
Filed under: Business, Get Into Business 

Becoming self employed can bring a lot of fears to the forefront, especially when a weak economy is on the horizon. That’s definitely not the best time to open a business, or so it would seem. All of this serves to heighten the concerns of the newly self employed. I have put together my Top 5 Concerns of the Newly Self Employed.

1) Inflation. With prices going up, how can you easily jump into a business and even think about competing on price?

2) Health Insurance. How can you cope with your health insurance needs? It’s costs can put a huge hamper in business plans.

3) Access to Capital. With the recent tightening of the credit market, how can I get access to the capital to build a business?

4) High Taxes. Taxes are high on businesses and the paperwork is just so convoluted.

5) Chances of Success. What kind of chance do I have to be successful?

I hope to offer advice on these in the coming days because I am working through these concerns myself right now.

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Comments

3 Comments on Top 5 Concerns of the Newly Self Employed

  1. Tom Volkar / Delightful Work on Thu, 17th Jul 2008 12:10 pm

    2. My comment is so what? All of these things are true and not one of them ought to stop you if you crave the freedom of self-employment. There of course is another side to the story and that’s the joy of being your own boss and the complete autonomy that comes with it. Also the possibility of prosperity beyond ones wildest dreams. No employee has that.

  2. entrepreneur blog on Sun, 10th Aug 2008 12:09 am

    3. While these are all things one should consider before going at it on their own, a person’s desire to achieve success on their own terms is what is most important. If a person has enough desire and knowledge they will most certainly overcome all of the five aforementioned obstacles. If that weren’t the case, entrepreneurial innovations would cease to exist.

  3. Self Employed on Thu, 14th Aug 2008 7:02 pm

    4. Rico - Whether you’re on your own or working for somebody else, there are always going to be concerns. Look at it the other way around…

    1) Inflation (translate to economy in general) - with a weakened economy, anybody is ripe for lay-offs or termination from companies they once thought were secure.
    2) Health Insurance - Short stint on cobra after you get fired, but then what? You’re on your own eventually until you find another job (from which you hopefully won’t get laid off).
    3) Access to Capital - What people earn is rarely relevant. It’s what they save or spend and what kind of debt they carry. I’d wager 80% of the US matches its spending habits to its income meaning that capital is as much a problem for those employed by others as it is for those who are self employed.
    4) High Taxes - Taxes are HIGHER on those who are in the employment of others. There are a multitude of ways to invest and secure income as a business that are unavailable to employees. If this is a legitimate concern, do yourself a favor and speak with a tax advisor and accountant specializing in small business.
    5) Chances of Success. I’ve worked for the same company from scrub to manager for 10 years. I’m not rich. I’m not even remotely well off. The point is that you have far more control over you financial future being self employed than you do working for somebody else. Fearing failure only ensures failure to launch or failure to recover from failure.

    Good post but I feel it can all be viewed from a glass half empty or glass half full perspective and your viewpoint will often dictate your results.

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