If you’re young and fresh out of college, you might be deciding between working for a company and starting your own business. Or working independently as a freelancer. Freelancer has freedom build into the title and owning a company allows you complete control of your career. However, that doesn’t mean that you should dismiss the advantages of working in a company.
There are several benefits that you may want consider before making this choice.
Unless you screw up a major deal, or you fail to deliver a good service to your employer, you will have job security working for a company. You will know that at the end of each month, you’ll receive a substantial paycheck. That level of pay won’t change too much either. In fact, it might even rise over time. Even if you are let go, there’s a good chance you’ll receive a pay package. This would cover you for six months if your redundancy were not due to an issue with your work.
None of these factors are guaranteed working independently. Whether or not you get paid, depends on if you can continue to get people to buy your services. If you can’t, then you won’t be making a lot of money. Even if you do get clients, there’s no guarantee of a constant positive increase in customers. Therefore, your level of pay is never fully guaranteed. You can kiss the idea of payment for periods of unemployment goodbye as well. You might even find it more difficult to claim unemployment benefits.
Paid Sick Leave
If you’re ill, and you work in a company, what happens? You will be given statutory sick pay. This is a legal requirement for all employers to their employees. No business owner can get away with failing to pay an employee who is off work ill. How much is statutory sick pay? Well, it’s a lot more than what you get as a freelancer or if you’re self-employed. That gives you a solid, zero.
If you’re ill when you’re self-employed you have two options. Keep working even though you’re ill or lose a few days pay. We know what you’re thinking. As a freelancer, you might be working from home anyway. You may be, but a lot of freelancers also take longer contracts where they work in an office, same as everyone else.
Finally, it’s important to remember that working for yourself or by yourself can get incredibly lonely. There will be no team around you. Even if you are working temporarily as a business hire, you won’t be there long enough to make friends. Or, to form relationships and that’s perhaps the biggest disadvantage of the freelancing lifestyle. It’s an independent business model. On the one hand, this does mean that you get all the profits that you make. On the other, there’s no one around you to share the success or the failure. If you fail, you will be the only one to feel that crushing blow.
This is one of the reasons why working as a solopreneur is certainly not for everyone. Many people are better off working in big business.