what is self employment : meaning, top features you need to know+
Self employment or self employed work is that carried out by a natural person directly and regularly for profit without the organization or management of another company, offering or not working for third parties as an employee.
The concept of what is self employment is one of the most recurrent, so today we return to the basics and give a review for all those who are starting with the world of finance or business administration.
Working for someone else or working for yourself. That is the question. But … do you really have what it takes to show what you know how to do, attract your own clients and generate your income with it? Whether offering your services on the internet or selling sandwiches in your neighborhood, it’s the same.
In general terms, the self-employed person is someone who works independently, who has their own business, their own trade or art, who works on their own.
Characteristics of self employment
When working on our own we have a series of advantages and disadvantages that accompany us. On the one hand, we can count on the possibility of organizing ourselves, without fixed schedules or specific vacation days. You will also have the possibility to choose where to work, without having to travel.
On the other hand, among the most notable disadvantages we have the absence of a certain fixed salary . Your income may vary from month to month, and nobody assures you that you are going to charge a minimum amount. You also have much more responsibility, and a much higher amount of work than most employed persons.
The business is yours, so the chances of its success depend on you and the amount of work you do.
Starting a company is not easy, so if you are taking your first steps as a freelancer, having the help of an advisor can be of great help. Let us help you establish your business and take it to the top of the hand of professionals.
It is, basically, an employee. All those people who are hired by a company and work under its guidelines, schedules, norms … According to the strict definition, any person who works at least one hour a week for a company in exchange for a salary, is considered an employed person.
Salaried workers are also all those who have a job in a company but who for different reasons (illness, maternity leave, vacations, etc.) are not working at that time.
Self employed jobs
A self-employed worker is one who performs a professional activity on a regular basis in exchange for money without an employment contract that binds him to any company, so that he carries out his work only in his own name.
Anyone over 18 years of age can be self employed without having to contribute a minimum capital as required of companies.
Generally, the self employed person has unlimited liability, that is, there is no separation between his assets as a person and that which belongs to the company.
Therefore, all your assets and properties, such as residence, car, etc.… are also part of the business. What this means is that if at any time the self employed person does not fulfill his responsibilities, he must respond with his belongings.
There is also the figure of the self employed with limited liability but, in this case, a series of very specific requirements must be met.
Differences between salaried and self employed worker.
We have talked about what is self employment / self-employed workers and salaried workers, but are we really aware of the differences involved in working in one way or another? Continue reading.
• Own organization.
While the employed worker has fixed hours, mandatory breaks and the right to certain days of vacation, in the case of the self-employed worker it is he himself who organizes his time and days off.
A company that hires a person must provide them with all the material they need to carry out your work. For their part, the self-employed worker will have to obtain all the necessary tools for their activity on their own.
Salaried workers have to go to the workplace indicated by the company for which they work, while the self-employed can decide where to work, as long as they carry out the work assigned.
A person hired by a company receives a similar salary every month, except for incentives and double pay. On the other hand, a self-employed worker can have very different income one month or another depending on the job they are commissioned to do.
• Amount of work.
Someone who is employed in theory has to receive the same amount of money regardless of the ups and downs in the profits of the company. A freelancer assumes a financial risk of his business and will affect both losses and profits.
Is working bad or good?
The problem is the concept we have of “working” . To begin with, it is a bad thing. Phrases such as: “the doctor takes away from me everything except work”… “I wish I won the lottery and I never had to work again ”, they show it.
But that’s because we perceive that “working” is inescapably doing something that we don’t want to do, that it requires effort and our time, in exchange for money. Generally doing that for others, every day.
How can we not perceive working as something undesirable, when the idea we have in mind is that?
But what happens when things are different?
Imagine that there is something that you love to do, that you are passionate about, something that you would do even for free. Think if you could do it every day, whenever you want. And when not, don’t do it.
Also, realize that what you do and that you like so much, helps other people to be better, to be happier, and also provides you with a source of income that allows you to live well. Would you see that “working” as a bad thing? Because yes, friend, you would be working.
I give you my case (or my dream, which I am gradually making come true) so that you understand the difference:
I really like making web pages. In general, everything related to the internet, positioning, online marketing and more. I’ve been doing it for a long time, charging and not charging. Now, I try to make web pages for other people, either they are blogs to promote themselves and they can earn money through that way , or they are professionals who want to be on the internet and attract new clients .
In both ways, I consider that client as my friend, or at least someone I want to help. I help him, I improve his situation , and I earn a living from it. Working like this is something else.
Working like this, I assure you that if I am on the computer at 2.00 in the morning making any changes to your website, it does not cost me anything. I enjoy it, I promise.
I have focused on explaining what is self employment; to work for oneself and what it means to work for others. Now it’s up to you to choose.
I can tell you that working for yourself is not easy at all. You will have to work hard and work hard, and above all learn daily. Do not stop training .
But is working for someone else easy today? And even if you get employed, is it worth it with the current conditions that are handled today? Less money, more hours of work, feeling that your life is being spared …
In any case, I do not intend to convince anyone that the best option is one or the other, I only present my point of view and I encourage everyone to have their own criteria to assess the situation. Obviously, working for someone else has its good things: paid vacations, they continue to pay you if you are on leave, they pay you taxes, etc.
What I do not accept is that they tell me that ” you have a security “. Not today. No longer. But on the other hand it has the bad things that I mentioned before, so I insist, you decide.