self employed

self employed

5 Reasons Why Being Self Employed Has Become So Popular

Let’s talk about being employed vs. being self-employed. In the UK alone there is a general trend towards people becoming self-employed. Gone are the days where skilled go-getters tweaked their CVs and aligned themselves to make other people’s dreams come true. Nowadays, the average go-getter is going and getting it for him/herself! One just has to take a look at the statistics released by the Office of National Statistics for confirmation on this. Just last year the UK ONS released reports showing that 4.93 million people in the UK were self-employed – that’s 15% of all employed people in the country.

What’s The Hype About?

Why is everyone seemingly flocking into the self-employed market? It’s quite simple to understand if you know what the driving factors are.  With the ONS statistics showing that in 2019, 125,000 more people became self-employed than the previous year, the trend is confirmed. It’s very clear that people are moving away from traditional forms of employment and starting to do things a little differently, so let’s talk a bit more about the “why”. More people are opting to work for themselves than for other people or corporations…and here’s why.

  1. Advanced Digital Platforms are Making Things Simple for Start-ups.

According to Forbes in their New Study: Why Self-Employment Keeps Accelerating article, it is mentioned that new digital platforms and other digital trends have made it a great deal easier for people with skills to become more independent and cut out the middle man. Think of social media advertising and how it can put the skilled entrepreneur directly in touch with the customer. Now there’s no need for an employer to “bring the work in”.

  1. Being Able to Make the Decisions Creates a Passion for the Job.

Psychologically, someone who is happy working on a project is someone who is passionate about the outcome and ultimately productive. Psychology Today posted a fairly telling article that draws parallels between productivity in the work place and Maslow’s Hierarchy of Needs. This merely shows that when a person is happy in their workspace, they are more productive. And what would make one happier than choosing their own projects, making executive decisions, and working according to their own designed workflow?

  1. Start-up Loans are Easier to Get.

A few years ago, getting a loan to start up a business would take a lot of time an effort. Getting a loan with the High Street bank is no easy task. Nowadays skilled entrepreneurs can complete a self-employed loan application online and get the stat-up cash they need by the very next day. With loans of this nature readily available, even to those with a less than perfect credit score are taking the plunge and starting their own businesses instead of looking for work with employers.

  1. Self-Employed and Freelance Individuals Have a Greater Earning Potential.

Everyone wants to earn more money, but in an “employed” situation, a salary is fixed. There’s no room to earn more, unless you take on side-line work. According to Business News Daily, freelancers earn more than average employees do. It stands to reason that in a business environment, employers will need to cover certain business expenses and so earning for each member of the business is less than what it would be if said person went out on their own. Entrepreneurs are learning to cut out the middle man and earn more for it.

  1. Economic Uncertainty is Driving People to Self-Employment.

Economic uncertainty is always a driver for people doing things a little (or a lot) differently. No one likes to think about it, but with the uncertainty that Brexit imposed on the economy, many businesses in the UK have been reluctant to hire new people. With the job market cooling off, skilled individuals have had to become innovative and entrepreneurial to ensure that they have an income. And so while employment has plummeted in the UK, self-employment rates have recently soared.

Last Word

Many entrepreneurs are coming out of the woodwork in 2020 and it seems like it’s a trend that’s set to stay for the foreseeable future.  People don’t want to work for “someone else” anymore…they want to work for themselves. And that’s precisely what they are starting to do. If you are interested in becoming self-employed; plan your business strategy methodically, seek out reliable and affordable funding, and put in the hard work and dedication required of a new business owner. Good luck.

Is There Such A Thing As A Self-Employment Safety Net?

The UK is experiencing something of a self-employment boom right now. In fact, self-employed workers make up an astounding 15% of the UK workforce, and that number is only set to rise. From freelance writers to tradespeople and consultants; it’s now possible to do it all ourselves. And, if the stats are anything to go by, we can’t get enough.

Despite this increase, though, hundreds are still holding off on their self-employment dreams, and it’s all because of a lack of job security. Benefits aside, there’s no getting around the fact that self-employment is insecure. Ditching the 9-5 also means leaving holiday pay and sick leave. These are things those of us with financial burdens like mortgages and families can’t do without.

People are managing to live this way, though, and some are even finding some semblance of security. To make sure you can do the same, we’re going to consider how they’re managing it. 

Perfecting time management

This may seem like a simple point, but you’d be amazed by how much proper time management can afford self-employed security. Making sure you have jobs booked in advance means you never need to worry about not having work. That’s vital for ensuring you can both reduce self-employment stress and cover your bills every month. Instead of working on a day-to-day basis as you would in the office, then, perfect the art of looking ahead. If you have a year of jobs lined up, you’ll be in the best position moving forward. 

Insurance policies

To meet with the increase in self-employment, many insurance policies now offer security to individuals who go it alone. These can also work wonders for removing the uncertainty which plagued freelancers even a few years ago. Not only do they cover legal expenses, but options like Rhino Trade Insurance also make sure you get paid for tasks like jury duty. Other insurance policies can even cover you for time taken sick. These are the benefits you would otherwise see from an employer. And, they could save you from ever losing significant sums of money at a moment’s notice.

Private pensions

Most people would admit to worrying most about their pension when transitioning to self-employment. There’s no denying that there have certainly been issues with pensions in this area in the past. But,  a decent retirement isn’t impossible when you’re self-employed. By paying into a private pension plan like Nest as soon as you start working for yourself, you can save tax-free money for later life. While you do miss out on employer contributions, you also have the benefit of not being limited in your pension payments here. As such, you can adjust your amounts according to your income. That means you may even end up with a nicer pension than you would have if you’d remained in employment.

Self-employment does, undeniably, bring some security risks. With proper thought, though, it’s possible to overcome them and find a new level of safety in this entirely different way of working.