Generally, the term ‘self employment’ refers to someone working for themselves, however this can sometimes take on a number of different forms.
May be home or office based. It can be a scary and daunting option to start your own business and require significant financial investment in the initial stages. It may include:
This is similar to a small business owner or entrepreneur however they don't own the business exclusively. It may be with one or more partners.
A person who acts independently without being affiliated with an organisation and without a long-term commitment to one particular employer. Freelancers generally offer something tangible and work under contracts to a number of different clients (sometimes at any one time) to provide a specialist service, for example as designers, photographers, journalists. Freelancers will generally command a similar rate of pay as contractors. As well as the ability to use a specialist skill you must have the ability to market yourself to potential clients.
Contractors are also self employed but usually provide a specialist service in return for a fee. Contractors are usually used by organisations who want to acquire a specific skills set for a set period of time. For example 6 or 12 months. Contractors are usually employed by one organisation for a set period of time.
Consultants are also self employed although rather than offering something tangible, they offer professional and expert advice which is generally to management. They are experienced professionals and usually work in an advisory capacity. Consultants’ fees are sometimes dependent on their experience in their chosen field with the most experienced consultants often commanding very high fees and being seen as experts.
Earn their income through investing in other businesses, projects or stock markets.
Once you've decided to work for yourself, the next thing to do is decide which business structure to adopt. For example, if you're becoming a small business owner do you want to be a sole trader or a limited company? Each business type has legal and tax implications such as:
This article was written by the career coaching experts at Renovo.