An entrepreneur also known as a self-employed person enjoys becoming his/her boss and coming up with his/her business regulations. In addition to that, they become stable and gain control that may not be achieved by regular employees. In case you’ve been thinking of being self-employed, you should know the merits and demerits of taking this role.
The ability to be innovative.
One can create new ideas and products to meet the needs of an existing market niche a process called innovation. By being innovative, one develops new profitable industries. This almost guarantees that people will stand in line to give the self-employee his or her money so that they can have their needs satisfied.
Setting your price.
Another advantage of being a self-employee is the ability to set one’s price. Since entrepreneurs can develop new products that never existed before, they can also determine their price.
Flexibility regarding income and lifestyle.
Because the employee has the potential to set his/her price for his goods and services, he can determine the kind of revenue and lifestyle he/she wishes to maintain.
There is an option to diversify.
He/she can create one or many different businesses. This is the best reason for being self-employed. One can create a business to meet the needs of a particular market. Once you have the business up and running, you move on to creating another business model. This allows these self-employees to create as many income streams as possible.
Disadvantages of these employees;
There is No Regular Salary.
Once you initiate a business, you ought to be ready to leave behind the security of having a paycheck each month. Even successful self-employees experience lean months when all financial resources are being taken up by the new business.
Despite having the luxury of flexible schedules, this self-employed person also sacrifices his/her time especially during circumstances that need him/her to work for long hours.
Since this is his/her boss, all the main decisions are made by him/her. This is a burden and handling such responsibility is quite difficult.