by P Reddy

Created on: September 17, 2010

Becoming self-employed is not something to take lightly.  Dreaming about running your own business and doing it are two very different things.  Listed below are some questions you should ask yourself before you become self-employed.

1.  Are You Prepared for the Realities of Self-Employment?

Self-employment does not mean you can sit at home in your pajamas all day.  It also doesn't mean that you will be able to take long lunches, work fewer hours and watch the money roll in.  While these things may happen some of the time it is not the norm for the first few years of running a business.

Self-employed people work longer hours than those who work for someone else.  This is because you will be responsible for everything when you first start out.  Expect to be working long hours for little pay for at least six months.  Most businesses take about two years before they get off the ground.

2.  Do You Have Enough Money to Quit Your Day Job?

Most people have at least six months worth of wages in their bank account before they quit their day jobs.  Even if your business is profitable and running smoothly there will come a time when something goes wrong.

A client may not pay for your product or service and you will be out of pocket.  This happens to everyone and is a part of running a business.  You need to know that if you do not get a portion of your income when you expect it to come in that you will still have enough money to pay your bills.  The first two years of running a business should be about saving so that you can grow your business in the future.

Running a business is a lot of work.  Working for someone else means that you can clock out at the end of your day and not worry about work.  When you are self-employed you can and will encounter work related problems at any time.  This is a very rewarding endeavor and those who succeed at it will be independent and enjoy the many perks self-employment can give you.  Just don't expect it to be easy.  Self-employed will mean that you will have spend countless hours on your business before it gets off the ground.

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