I know, I know, I keep banging on about the difference between working for a boss and working for yourself (if you don’t believe me, click here and here and here!) – and what a steep learning curve it’s been.
So why IS it actually so different?!
Perhaps the biggest difference is that public holidays tend to lose their meaning.
If you don’t work, you don’t get paid. And at this time of year there tends to be a lot of public holidays with Easter and Anzac Day.
There have been many times when I have worked on a public holiday because there was just so much work that I couldn’t afford to take the time away from my desk! (Thankfully this is becoming rarer)
However this is just the tip of the iceberg, when it comes to the difference between working for a boss, and working for yourself!
The Negatives of Working for Yourself
Here are just some of the others:
- You have to set your own pay rate. Forget what you earned in somebody else’s employ; it’s a whole new ball game. Not only do you have to price yourself competitively, you also have to make sure you pay yourself enough! It’s not just your time that you should be reimbursed for – it also includes the training, skills and expertise you bring to your role. To you, it might seem like easy work, it’s not exactly rocket science. The thing is, to other folk it may as well be rocket science, because they can’t do what you do – and that’s why they hire you!
- As mentioned above, you don’t get sick leave, long service, holiday pay or leave loading (so make sure you remember all this as well, when you try to calculate your pay rate!).
- Your employer no longer has to kick in a certain percentage for your super. Now, it’s up to YOU. Another reason to think very carefully about the pay rate you set!
- Oh, and while you’re at it, don’t forget you will need to make sure you are protected with business insurance.
- You have to pay for IT support services, as there isn’t a handy IT department for when technology or equipment lets you down!
- You have to keep excellent financial records for tax purposes.
- You don’t have income tax taken out of each pay packet for you; so at the end of the financial year, instead of a bonus, you get hit with a bill. (And if you earn enough to include GST, your book-keeping will include a quarterly BAS and other headaches).
- And – book work isn’t billable! A lot of your work you won’t be able to bill clients for / get paid for – not just book-keeping, but wooing prospective clients at meetings, preparing quotes and proposals, marketing and promotion.
- As an employee I was able to attend conferences, and attend Writing for the Web, or Microsoft Excel training – at my employer’s expense. These days, I’m the one that has to wear these costs!
- You have to find the work yourself, and get your own clients.
- If you get a personal phone call, or somebody drops in (and they do when you work from home) – guess what, you’re not working. And not working = no pay.
- You work a darn sight harder – and longer hours – than you ever did for somebody else! (Definitely at first, hopefully you will get a better work/life balance as you go along). Don’t get me wrong, I always worked hard as an employee – but there is a BIG difference.
- It can be really hard to switch off from work mode – and especially if you work from home …
- You don’t have a regular pay day. In fact, often you will have to chase up clients for payment – so don’t expect anything in your bank account until it actually hits your bank account!
It’s a lot to think about, and so far I’ve focused on the common pitfalls of working for yourself.
The Benefits of Working for Yourself
There is an upside, and although there aren’t as many points, they more than balance things out in my view:
- If you don’t like your boss (a client) – it’s simple – you don’t have to take the job or work with them.
- You don’t have to ask anybody if you can take a day off, or leave early, or take a holiday.
- You don’t need to go to the doctor just to get a medical certificate if you are sick.
- Your time is a lot more flexible. Doctors or hairdressing appointments – you can make them whenever you like, because you are not limited by 9 to 5. And you’re already at home, working, so it doesn’t matter if the tradesman or repairman doesn’t turn up on time.
- You can be there for your family (if you have one). Although of course my kids have left the nest, even as teenagers / young adults they still needed their mum – like when our daughter had her tonsils out at age 17. She needed constant care for at least 10 days, and I was able to give her that and still do my work.
- You get to do what you love!
- And finally – the sky is the limit! YOU are the one to reap the benefits, not your boss (I still remember one job I had where a staff member left, so I took on her duties on top of my own workload – and she was never replaced. Did I get any thanks, kudos, or extra pay for it? Of course not! Only later did I find out that the boss DID get a bonus – for budget savings from not filling that position! It still makes me steamed all this time later!)
The difference between working for a boss, and working for yourself, sounds quite simple now I’ve put it down on paper.
But the reality is, I’d never even thought of any of this when I was an employee.
Have you ever thought about working for yourself? I hope I haven’t put you off – despite the negatives, I really love that I no longer work for a boss
Mystery Case says
I’ve been working for myself, one way or another but very similar to you for 15 years now. I don’t think I could go back to working for someone else. Far more positives than negatives as far as I’m concerned.
Janet Camilleri says
I don’t think I could either – esp some of the cr@ppy bosses I’ve had!!!
Sarah from Creating Contentment says
I found the negatives really fascinating. The positives are known, which is why a lot of people dream of working for themselves. When dreaming now, I shall factor in the negatives. At least in the planning stage.
Nola says
Hi Janet – I can relate to that. It’s certainly a steep learning curve, especially setting that pay rate. I gave someone a quote the other day, which they accepted immediately. However, I still felt a little guilty about charging them the amount I did. After it took me 6 hours to do what I had estimated would take me 4 though, I was feeling better about that pay all the time. We’re fortunate that we have some income coming in from another source as well, so we don’t have to earn our whole living from the business. But we would like to get the percentage up a bit. We’re loving working from home though. A lot more fun than where I used to work. Thanks for the tips 🙂
Janet Camilleri says
I still struggle with the pay thing – it drives me crackers!!!
ButterCup says
I really appreciate the wonder ladies who can work from home,be self-employed & still maintain a balance. For me, home is a place for chores & putting up the feet after a day of work. I find it hard to even visualise being a businesswoman, partly it must be because of the comfort zone of being an employee. You have brought out the negatives in a lucid way, which show that its all fun & games when you work for yourself.
Janet Camilleri says
It’s true, nobody ever really tells you what it’s REALLY like they just glorify the benefits!
Kirsty @ My Home Truths says
I do dream of working from home for myself one day. I already work from home for my employer and love just how much I can get done away from the workplace. For now, I’m content to go as I am but I do harbour dreams of going out on my own one day – thanks for sharing your experience Janet!
Janet Camilleri says
Hubster occasionally works from home too for his employer, he too agrees he gets so much more done here away from all the phones, colleagues and other distractions!
Zita says
Wow..what a list. I have never thought about working for myself – wouldn’t have a clue what I would do but you have certainly turned me off it even more! hahaha…
Janet Camilleri says
Yeah I’d never really thought about it before I had to!
Bec @ The Plumbette says
I think you’ve covered everything with both sides of the coin but I think the biggest factor is flexibility.
Janet Camilleri says
Yes, I do appreciate the flexibility.
Toni @ Finding Myself Young says
If I ever work out how to make a living from my blog or social media then yes 🙂
Would have to be work from home though because I want to see my kids grow up. My parents ran their own shop and we never saw them. We were always at baby sitters and grandparents houses.
Janet Camilleri says
I worked out of the home, part-time/casual, from when my kids were in Years 3 & 1. Fortunately it was always 5 mins from home which was some consolation.
Ironically I lost my job (made redundant) when the youngest was in Year 11 and now I get to be home for them!!
Emily @ Have A Laugh On Me says
A perfect description of my life!!!!!! Both the pros and cons. Especially the bit about being paid – I’m still owed about $2000 from various places in a month ago – HATE CHASING MONEY!! x
Rita @ The Crafty Expat says
I worked for myself for four years as a criminal lawyer in Canada Janet and I agree with all your points. What I liked most was the ability to make my own schedule. What I disliked most was, like Em, chasing my money. But, generally speaking, I loved it.
Kathy Marris says
You have raised some very good points here. I think I enjoy working outside my home as I like the social interaction that going to work provides and also the security of having a regular income coming in. However, not having to work with difficult people is definitely alluring!
Dan Brusca says
Yep. I don’t care anymore about public holidays. Unless they’re messing with my bank withdrawals. LOL