• What is self-employment?
• The benefits of self-employment vs. being an employee
• Pros of being self-employed
• Cons of self-employment
• Is self-employment right for you?
• FAQ

If you choose to become self-employed, you will face unique opportunities and challenges. Here, we’ll discuss the meaning of self-employment, the pros and cons of being self-employed, and the benefits compared to working as an employee. 

What is self-employment?

When you’re self-employed — or considered a solopreneur — you get to be your own boss. According to a study by Statistics Canada, more than 7 in 10 self-employed workers ran a small business with no employees in the last quarter of 2023.

Common industries for self-employment

• Branding
• Design
• IT
• Leadership
• Marketing 
• Operations
• Product development
• Social media
• Sustainability 

Based on your skills and experience, starting your own business could be a viable option. 

The benefits of self-employment vs. being an employee

If you’re debating whether to become self-employed or work for a company, here are a few things you should consider before making a decision. 

Self-employment

Self-employment gives you the freedom and flexibility to choose the clients you want to work with. There’s also a higher earning potential. However, it also comes with more risk and responsibility, as you have to find your own clients. You also need to be comfortable working independently. 

Working as an employee 

The perks of working as an employee are that you get the stability and security of having a job. You also get to be in a team environment and socialize with colleagues. However, you may have less control over your work schedule, travel, and workload.

Pros of being self-employed

There are many benefits of self-employment. Here are the pros of becoming self-employed.

Low overhead costs

You can run your business from your home and have an online presence to promote your services. 

Scheduling flexibility

As a sole proprietor, you control your calendar and how much time you want to dedicate to your business. However, you need to be disciplined when enjoying this freedom. 

Unlimited earning potential 

Since you’re in the driver’s seat, there’s no limit on how much you can earn being self-employed. Generally, the more skilled you are and the more time you invest in your business, the more income you can generate.

Professional development

Attending conferences, industry events, training sessions, and webinars are common ways self-employed individuals can keep learning and developing new skills. You also get the added benefit of growing your network, which may lead to new client referrals.

Cons of self-employment

With any business you start, there are downsides of self-employment to be aware of. 

Generating leads 

You’re responsible for closing deals, which could lead to stress and frustration. You have to learn how to market yourself and stand out from the competition. There are books you can read and courses you can take on how to market your business. As a result, it may take time to grow your business.

Inconsistent work 

When you wrap up one project for a client but don’t have anything else lined up, it could lead to a gap in earnings. This can lead to financial stress when running your business. That’s why it’s important to consistently have discussions with potential clients so you can have a steady amount of work coming in.

Time spent travelling 

Starting your business may require you to travel extensively to meet with new clients. Time spent on the road can be exhausting and can take away from actually getting work done. You can find balance in scheduling a mix of virtual and in-person meetings. This way, you can maintain productivity and provide quality service for your clients. 

Juggling responsibilities

Not only do you need to fulfill your deliverables to your clients, but you also need to focus on tasks such as accounting, invoicing, and taxes as a self-employed worker. This can require more time commitment, leading to longer work hours.

Managing your benefits

When you’re self-employed, you need to find your own health benefits and insurance provider. This is an out-of-pocket expense so you can get coverage for medication, dental visits, vision care, and paramedical services.  

Is self-employment right for you? 

Ultimately, launching your own business is a personal choice. Be sure to do your research before taking this step. There are perks and pitfalls to working for a company versus starting your own business. 

Ask friends and talk to other experienced people in the industry to get their perspectives and insights. This will give you an idea of what to expect, and the ups and downs of your career choice.  

Your business needs the right tools to help you manage your expenses and tax deductions. Try QuickBooks Online to make the process fast and efficient.