The New Norm: Is a Home-Based Business a Good Fit?

Home-based business

The pandemic caused many hard-working people to shelter at home and start working remotely. Initially, it was difficult for many people, especially for parents because their children were there as well. Today, as businesses open back up and these same individuals return to their office environment, many are considering leaving the office behind and turning to freelancing. 

Before handing in a resignation, weigh the pros and cons carefully. 

 

Pros to Self-Employment

There are plenty of reasons why working from home might be a great idea for you. Let’s take a look at a few.

 

Your Own Workspace

Self-employed people who work from home create their own workspace. You can hire a contractor to remodel a room in your home. Just make sure to hire a reputable contractor. 

You can do this by using a business like Networx and check the Networx reviews of the contractors prior to signing the contract. 

 

You Are the Boss

It’s very gratifying to be the boss. All the decisions are yours. Gone are the days of needing the approval of a hirer up. If you possess the skills required, having your own business can prove rewarding. 

 

No Salary Cap

As the owner, you don’t have to ask for raises or try to convince someone else you deserve more money. If the bottom line supports it, you can give yourself a raise when you want. Or you can go the extra to increase your workload prior to holidays, special events and vacations to ensure you make more money when you need it. There’s no need to prove your worth to achieve higher earnings.

 

Create a Work Schedule

When it’s your business, you decide the hours. If you’re an early riser you can begin at 6 a.m. or if that doesn’t quite work for you, go ahead and start work at 12 p.m. or later. It’s up to you. As long as you are putting in the work to meet the demands of your clients, you should be doing well.

 

Selective Work

When you work for a company, you need to complete the assigned work. Often, this means handling less than desirable clients. Now that you’re the boss, you can pick what clients you want. If one doesn’t pay promptly or you simply can’t see eye-to-eye, you can say no to future assignments. 

 

Convenience

Self-employed individuals can work anywhere there’s access to the internet. You can work from home, while visiting family and friends or taking a trip out of the country. So long as there are no physical face-to-face meetings, the workplace is of your choosing. 

 

No Office Attire

Most professional businesses require their office workers to wear semi-formal attire. Along with the dress code comes upkeep which can cost thousands in a single year. Working from home, you can wear whatever you like. If you want to wear sweats or even your pajamas, it’s totally up to you. 

 

Cons of Self-Employment

What about the cons? Well, there are some of those too.

 

Fluctuating Pay

Unfortunately, as a freelancer your pay will fluctuate. Some months are lucrative, while others fall short. If you are good with money management, you can make it work. However, if you don’t budget your money you can fall behind on your monthly bills resulting in late or missed payments. 

 

No Guaranteed Income

When you first work for yourself, it can take several months to land a contract. You don’t have a guaranteed salary as you do when employed by a business. You may also encounter clients who refuse to pay for services performed. 

That means money you counted on to pay expenses is not available. Many people who chose self-employment prepare in advance for the lack of work. They have a savings account containing several months worth of bills in reserve. 

 

No Benefits

Unlike working for a company, as a freelancer you have no benefits. There’s no health insurance, retirement package, vacation time or sick or personal days. Gaining health insurance and retirement benefits can be very costly. If you take time off, you will do so without pay. 

 

Working Alone

If you like to chat with co-workers, working from home may not provide a good fit. Isolation can lead to feeling depressed or anxious. You have no one to bounce ideas off and your day may become very lonely.  

Working for yourself can prove very rewarding. You can design a workspace that suits your style, choose clients and a work schedule, and earn as much as you want. However, there are downfalls to self-employment. Weigh the pros and cons carefully to make an educated decision.