Is Self-employment Right for You? 4 Questions to Ask Yourself

This morning I was asked to give a presentation to a group of 5th graders about being self-employed. As I thought about what I was going to say to them, I realized there are plenty of adults out there who may be considering the same option. I decided to bring you a grown-up version of what I talked to the students about for today's blog post.

Many people launch a new business on a whim, thinking they just want to be their own boss. However, self-employment is not for everyone. It is certainly not for the faint of heart! To assess whether or not entrepreneurship is for you, ask yourselves these questions before you even begin the planning process.

Why do you want to be self-employed?
The most common reason I hear is that people want to be their own boss. While that is a benefit, that can also be a negative. As the boss, the sole responsibility falls on you. Although you get to choose who you work for, you can't always pick and choose your customers if you really want your business to thrive. You may consider reading this earlier blog post for other pros and cons of self-employment.

How flexible are you?
Being self-employed means dealing with the uncertainty of a changing income, changing economic conditions, as well as changes in your industry. As a business owner, you must wear many different hats. I am the customer relationship manager, operations manager, accountant, marketing executive, writer, and janitor of my business - and that was just today. Who knows what tomorrow will bring!

Are you self-motivated and disciplined?
There is no one looking over your shoulder to ensure you get your work done. No one is there to prevent you from sleeping in or taking a long lunch - you must have the discipline. There will be obstacles and difficulties to overcome almost everyday and you are the only one that can push yourself to tackle them.

Are you comfortable talking about yourself in front of strangers?
A business owner's best marketing tool is his or herself. If you are not willing to put yourself out into the community to network and make connections, it will be very difficult to get the word out about your business and its services.

Tips for a Smooth Transition from Self-employed to Employee

As someone who is self-employed, I know all about the perks: flexibility in your schedule, ability to make your own decisions and be your own boss, and direct control over your work environment to name a few. However, these perks are the same things that scare an employer when they are considering hiring you to work for them.

Employers ask themselves can you work an 8 to 5 schedule, can you take direction, and can you conform to company policy? Many employers think of the formerly self-employed worker as someone who is just going to stick around until they can get their business off the ground again.

If you are previously or currently self-employed and looking to make the transition into Corporate America, you have some obstacles that you must overcome in the job search process. Below are some pointers on how to deal with this type of situation on a resume and in the interview.

The Resume

• Try to avoid referring to yourself as owner or principal on your resume. Think about what area of your expertise you want to focus your search (i.e. marketing, operations management, etc.) and give yourself the appropriate title such as Director of Sales and Marketing or Director of Operations.
• As a business owner, you do it all - sales, customer service, business management, personnel management, and the list goes on. When writing your resume, remember employers do not want to know everything. They only want the most relevant information to the job they are filling. Focus your resume on relevant experience only.
• Emphasize your versatility and scope of knowledge, but don't overwhelm the employer with too much information that does not matter to the job you are seeking.

The Interview

• In the interview you will need to address early on that you were self-employed. Be sure to clearly communicate that while you enjoyed being a business owner, and gained extensive knowledge and skills, you are ready to expand your knowledge and utilize your skills in the corporate arena.
• Don't give the interviewer the impression you are running from something (i.e. a failed business, long hours as an entrepreneur). Instead, make them feel as though you have chosen to work for their company and that you bring a wealth of experience and knowledge to the table.
• Since your experience and accomplishments when self-employed are not verifiable, go armed with references from vendors, clients or business peers that can speak to your ethics, work history and accomplishments.

The Pros and Cons of Self-employment

If you dream of leaving the 9 to 5 lifestyle behind and have considered exploring self-employment, before you make the leap you should evaluate all angles. Like any form of employment, being self-employed has its perks and its drawbacks. Here are a few things for you to consider.

Pro: You are your own boss
You are in charge of every detail of your business, you make all the decisions, and you have all the control. Aside from your customers, you answer to no one but yourself. You get to choose who you work with and who you work for. You are not obligated to continue the relationship with a client that is unpleasant, who has unrealistic expectations, or is abusive and rude.

Con: You are your own boss
As someone who is self-employed, I often struggle with self-discipline. Having no one looking over your shoulder can lead to taking too much time off and getting behind in your work. Self-employment demands self-control, self-motivation, time management, and discipline. Keep in mind, there is no one else but you to listen to and solve problems for those unhappy and irate customers. As the only one who is making decisions, you will face some tough choices and will have to own up to your failures.

Pro: Flexible work hours
As an entrepreneur, you get to set your own schedule and work when you chose. Self-employment enables me to spend more time with my children, to go on their field trips, and take vacations whenever I would like. As long as I have a phone, a computer and an internet connection, I can do my work anywhere.

Con: Long work hours
Many successful entrepreneurs will tell you that an 8-hour workday is not an option. As the sole person responsible for the business’ success, you often have to work whatever hours are required. I mentioned earlier that my business allows me to spend time with my family. However, I failed to mention that means I work from 8 pm to midnight most nights. Many self-employed people have a hard time leaving their business behind. I have answered client emails while waiting in line at Disneyland and written resumes while my kids played on the beach nearby. The flexibility can be a pro and a con, depending on your viewpoint.

Pro: The money you earn is yours
When you are self-employed, your efforts and your rewards go straight back to you. There is no “glass ceiling” the sky is the limit as to your earning potential. No more slaving away and feeling as though you are not getting the recognition – and rewards – you deserve.

Con: Potential lack of a steady income
When the company does not make money, you don’t make money. There is no steady paycheck or dollar amount you can count on every two weeks when you are self-employed. If you do not perform, you don’t get paid.

Working from Home: Key Success Factors

Whether you are self-employed or telecommuting, the freedom and flexibility of working from home can be exhilarating, especially after years in an office environment. You’ll delight in the opportunity to think through ideas without interruption, and the flexibility of working around key personal commitments is invaluable. You may also find, though, that there can be some challenges as you make the transition to working from home. For a successful transition, consider the following advice:

Preserve the professional mindset: Get dressed and maintain a set work schedule. Align your work schedule with normal business hours, if applicable based on the job and any agreed-upon working arrangements with employers or clients. Consistent work hours are particularly important if you are telecommuting; you need to be available for the core hours your company will keep.
Be accessible: Make sure you’re accessible to your clients, boss, or coworkers. Use the advantages of technology that make communicating or working with clients from anywhere seamless, such as smart phone and/or dedicated phone land line/message service, fax machine, web conferencing, file hosting service, etc.
Maintain a workspace: Dedicate a specific physical location as your workspace and contain your work to that area so it does not overtake your home. Make sure it is private and that members of the household are aware when that space is off-limits. Have a signal when you are unavailable (e.g. door closed, sign on door).
Keep networking: Networking is a key success factor for any job, but consider it even more vital when working from home. Taking breaks in your day is necessary and combining this with networking is a smart approach. Not only may it lead to your next assignment, but continuing to exchange ideas and get input/feedback from professional colleagues will enhance the quality of your work.