being your own boss essay

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Being your Own Boss: Top 18 Benefits and Drawbacks

For a company to flourish in today’s corporate world, it is mandatory that the company has a good boss who is leading from the front. If a company has an incompetent boss who is unwilling to carry out his responsibilities well then sooner or later the company is sure to shut down.

Though many people believe that being your own boss is amazing, but what they do not realize is that there are also some drawbacks involved. Here are some of the advantages and disadvantages of being your own boss.

Advantages and Disadvantages of Being Your Own Boss:

Benefits or advantages of being your own boss:, 1. you can take your own time to do things:.

One of the biggest boons of being your own boss is that you can take your own time to get a job done. You need not bother yourself with trying to keep up with a deadline.

Working with a deadline is a source of great anxiety as well as stress to employees and once you have this worry off your back, you can actually focus on the task which is at hand and give it your all.

It often happens that in a hurry to complete the job you are unable to do justice to the task, but when you are your own boss you can take as long as you want in order to get the task done in a perfect manner.

2. You can have a flexible schedule:

Those individuals, who are lucky enough to be their own boss, have a very flexible schedule . They can do whatever they want and whenever they want to do it.

Unlike other people who are forced to be productive during 9-5, such people can work as and when they feel like.

There are many people who are able to produce their best work in the dead of night and being your own boss allows you to work whenever you feel comfortable. In addition to that you are free to work from home as well.

Working from home is great as you need not spend money on a professional office wardrobe or even on transportation.

3. You can follow your own instincts:

One of the major drawbacks of working in a company is that very often you are unable to follow your own instincts when it comes to getting a job done. You are forced to follow the directions which have been given to you by the boss.

However even if you are told to function as you want to, it is unlikely that you will do so, for sheer fear of messing up.

Believe it or not when working in a company you are expected to deliver top quality work at all times, if you happen to make a mistake that is sure to leave a negative impression in the mind of your seniors and managers.

4. You are not answerable to any third person:

A great pro of being your own boss is that you are not answerable to anyone else for the decisions which you are making.

You have the freedom to play as per your own rules and no one else has the authority to pull you up or make an issue of a mistake which you make.

Constantly having to pay attention to what a third person is saying is naturally going to thwart your own individuality.

Over time, rather than paying attention to what it is that you want, you end up trying hard to work according to what the other person seems fit.

5. Whatever profits you make is your own:

Many individuals dislike going that extra mile in the workplace because they believe that most often they are not going to receive any extra reward. They are content with doing the bare minimum amount of work and then heading home.

However, when it comes to being your own boss, you are always excited to go that extra mile simply because you know that all the extra money which you make will be yours to keep. The harder you work at your own business, the better it is likely to be for you.

Those that work hard when they are their own boss, make a lot of money for themselves as well as their family members.

6. You can maintain a good work-life balance:

Maintaining a proper work-life balance is something which is essential if you would like to live a happy life. If you concentrate only on your work you will surely be missing out on the family front. Being your own boss allows you to organize your schedule in a way that is conducive to your lifestyle.

If there is some family occasion which you need to attend, you take a break for your job for as long as you like without having to apply for leave or anything.

Even during the vacation, you can shy away from the crowd to work along on your laptop from time to time.

7. You don’t have to deal with the tantrums of your boss:

Most often, bosses are individuals who have a lot to deal with. It is for this reason that in the corporate world, bosses are people who throw a lot of tantrums and hardly ever take into consideration another person’s point of view.

Becoming your own boss eliminates you from having to deal with such an individual who will constantly take out his anger on you.

8. You do not constantly have to try and impress someone:

A great part of being your own boss is that you need not try your level best to impress anyone. As long as you are happy with what you are doing, that is really all that matters.

In the business world, you do have to constantly keep an eye out to ensure that you aren’t doing anything which your boss would not approve of.

9. It is sure to give you more self confidence:

Those individuals who are lacking in self confidence are never able to make it large on the business front.

If you are humble and meek people in the cruel business world, they are bound to trample over you without a second thought in their mind.

Becoming your own boss is great simply because it gives you a whole lot of self confidence . You start having courage in your own ability and really begin to take chances.

If you work in a company, you constantly have something to fall back on; this sense of security is something which often prevents people from really exploring their own limits.

10. More job satisfaction:

Job satisfaction is something which is extremely important. If you are not satisfied with the job which you are sure to feel rather burdened in life.

Those people, who love and enjoy the job which they have, never feel like they are working. On the contrary they look forward to taking up new projects and learning new things with each passing day.

Being your own boss is something which is very positive thing and encourages an individual to really break free from what others tell him and do what he thinks is best.

If you happen to be your own boss also makes others respect you a lot more than they otherwise would.

Drawbacks or Disadvantages of Being your Own Boss:

1. you might feel alone and isolated sometimes:.

Though being your own boss might seem like a very ideal thing, it does have a number of drawbacks, one of its major drawbacks is that at times you might be feeling completely alone as well as isolated from the rest of the world.

Even if you are doing well in your own business you are bound to miss the thrill and rush of being a part of the corporate jungle.

2. You won’t have someone to guide you:

Though being and feeling independent is something which we all think was fancy, however when actually given complete independence a lot of us feel rather confused as well as frustrated.

At such a time having a boss who will be a source of support and motivation is a great boon.

Being your own boss sometimes makes you miss having someone to be there for you when you are going wrong.

3. It might make you lazy and lax in your style of work:

Many a time we detest the idea of having someone who constantly gives us strict deadlines to follow. However it is when we have deadlines that we actually work both swiftly as well as efficiently.

Being your own boss is bad in the way that it often makes you very lazy and lax in your style of working. Simply because there is no one to be strict with you and force you to do your best at all times.

Being on your own might make you lazy in the way that you start trying to cut corners and make shortcuts in your work. Once you start cutting corners that is surely going to spell disaster for your own business.

4. You have too many things to take care off on your own:

When you are your own boss, believe it or not you will have to multi task like you have never multi tasked before.

If you wish to make it big and really make a mark for yourself in the business world you will really need to make sure that every part of your organization is functioning in a perfect manner.

Big companies have their big brand name to rely on; you on the other hand have nothing like this to fall back on. If you fail to deliver, your business is never going to succeed.

5. Your income is unlikely to be very steady:

When working in a company your business is very steady, yet when you are your own boss, unless you work hard, you will not be able to make a lot of money. Keep in mind if you go on a lot of vacations, there will be no such thing as paid leave for you.

6. If things go wrong you have only yourself to blame:

If things go wrong when you are your own boss, you have no one to blame but yourself for that. You cannot take your anger out on any other person because the sole person to wield all the responsibility will be you.

7. It often involves working round the clock:

You might have the wrong image that when you work on your own, you can work whenever you feel like, but chances are that when you are your own boss, you have to work doubly hard in order to get things up and running.

8. You will miss some perks which employees otherwise get:

Employees working in big companies have the advantage of getting a lot of perks. When you are your own boss you will certainly miss things like a paid vacation or even a bonus when you are the employee of the month.

If you wish to be your own boss, from the very onset you must understand that at the very early stages things are going to be very tough and at times you may even get the urge to give up and try something else, but you must continue to power through if it is genuinely something you want.

Conclusion:

If you are thinking of starting your own company or organization and you are wondering whether it is a good idea or not, you should ensure that you keep these vital points in mind when you are taking your decision.

It is often said that the grass always seems greener on the other side, so in order to help you the points above attempt to give a clear picture of both sides of the fence.

However, you are sure that you have what it takes to be a good boss to yourself and others then you should turn a deaf ear to what others are saying to you.

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Advantages and disadvantages of being your own boss

Table of Contents

What are the advantages of being your own boss?

Set your own hours, you’re in charge of decisions, work from anywhere, you reap all the profits, what are the disadvantages, you carry all the burden, no promise of steady income , you miss out on employee benefits, ready to take the plunge, keep on top of your business finances from day one.

Branching out on your own can be a scary and exciting journey. Becoming your own boss takes a lot of planning, dedication, and some risk-taking. Running your own business has many benefits but also comes with some drawbacks you should be aware of.

We’ve listed the main advantages and disadvantages of being your own boss to give you a good idea of what to expect. We’ll explore:

• Advantages like setting your own hours and being in complete control of your business
• Disadvantages like carrying all the burden and unpredictable earnings
• How Countingup helps make running your own business easier

Being self-employed is the perfect option for some people and comes with a number of benefits, including the ones we mention below:

When you’re employed by someone else, they ultimately choose your working hours. However, working for yourself means you have the power and freedom to decide when you want to work (within reason). 

Yes, starting up your own business can mean you have to dedicate long hours to get it off the ground. However, once you’re past the first hurdle and your business starts becoming more profitable, you have more freedom with your schedule. 

Having this flexibility can be especially beneficial if you have children since you can work around activities like picking up the kids from school or other activities.

Being your own boss means you’re not only in charge of setting your own hour, but you make all the decisions concerning your business. No more bosses or coworkers telling you what to do or how to do your job!

As a business owner, you choose how you want to set up and run your company. You choose where to source materials, what types of jobs to accept, how you treat customers and vendors, how you market yourself, and everything else.

Thanks to modern technology , you can do most jobs from anywhere as long as you have your laptop, smartphone, and internet connection. Obviously, some of this freedom depends on the type of job you do. For example, if you run a small bakery, you would need to spend time on the premises to sell your products to customers.

However, even if you run a shop, coffee shop, or restaurant, technology still allows you to complete financial management, marketing, business planning, and other tasks from virtually anywhere.

Have you ever been in a situation where you completed a task, and someone else took the credit? When you’re self-employed, the success of your business rests on your shoulders. Your achievements are yours and yours alone.

Additionally, once your business starts to make a profit, you have flexibility on how much to pay yourself. If you want to take a long vacation, you may earn less that month. Or, if you want to take out more dividends to pay for a trip, you can balance that next month. 

Find out more about how to pay yourself tax-efficiently in our guide called, How much dividends can I pay myself tax-free? .

Like most things in life, being your own boss also comes with some drawbacks it’s good to be aware of:

While running a business means you can reap all the benefits yourself, it also means everything depends on you. Especially at the beginning, you need to dedicate a lot of time and effort to get things going, which can be stressful and isolating. 

You’re also responsible for networking, sales, financial admin, marketing, bills, tax preparation, and anything else business-related. If the company doesn’t do well, you only have yourself to blame. 

One potential drawback that might cause many employees to shy away from starting a company is the unsteady income. With a regular day job, if you get something wrong, your boss might give you a slap on the risk and tell you not to do it again. However, you’ll likely get a chance to do better next time (unless the mistake you made was catastrophic).

As your own boss, you’ll no longer have a set paycheck coming in at the end of every month. Entrepreneurs have to be willing to take risks and sacrifice that steady salary for the chance of succeeding on their own. You have to give your best every day to make sure your customers/clients are satisfied with your service.

Missing out on employee benefits like paid holidays or sick leave can be a major financial issue if you want to start your own business. Even if you secure health benefits or insurance , it might not include as much as a company might. As a result, you may have to pay for medical expenses out of your own pocket. 

Should something happen to you, like an injury or illness, you have no one there to pick up the slack. Similarly, if you want to take time off to go on holiday, the business will stop until you get back to work. 

Starting your own business has more benefits than drawbacks and is the perfect option for anyone who enjoys a challenge and loves being in charge. If you have a brilliant business idea you’re thinking about pursuing, why not take the chance? We hope that knowing the advantages and disadvantages of being your own boss has prepared you for what it might mean. 

The Countingup business current account makes it easy to manage all your financial data in one simple app. The app comes with free built-in accounting software that automates the time-consuming aspects of bookkeeping and taxes. You’ll receive real-time insights into your cash flow, profit and loss reports, tax estimates, and the ability to create invoices in seconds. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward!

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Being Your Own Boss: Advantages and Disadvantages

The Big Boss, The Head Honcho

Who doesn’t want to be the boss? Let’s face it – no one grows up thinking, “I hope I always have someone standing over me to tell me what to do and how to do it.”

• Yet most people don’t end up being the head honcho, do they?
• Have you ever thought about why so many people work for other people?
• Why are they out there searching for sales jobs instead of starting the business that sells the product?
• Wouldn’t it just be better to be your own boss?

The Pros and Cons of Being Your Own Boss

Let’s explore the advantages and disadvantages of being your own boss in this guide –

Being Your Own Boss: The Disadvantages

Being your own boss certainly sounds fantastic, but if it’s so great why isn’t everyone doing it?

1.) Money:  Starting your own business takes money. Depending on the type of business you want to start, the initial investment may be a small sacrifice or a major investment that requires you to seek out business loans and investors.

Investing in your plan is a challenge in itself, but convincing others (often just a spouse) that your business is going to be a worthwhile investment can be a major sticking point.

Once you get your business rolling, turning a profit usually takes a long time. Remember the days of the weekly paycheck? Being an employee doesn’t seem so bad now.

2.) Benefits:  Health benefits can be a major financial problem for people who want to start businesses.

It’s what often keeps people working for employers. Even if you do secure health benefits, they’re often not as good as a large company will offer you and more comes out of your pocket to pay for them.

There are other benefits that come with working for an employer as well, such as paid-time-off. Those who work for themselves and are committed to making their business a success work long hours, every day of the week. Most employees have days off and set hours.

3.) Responsibility:  As your own boss, you take on a tremendous amount of responsibility. First, you’re responsible for making your dream a success.

That’s a lot of hard work. Secondly, you’re responsible to your investors (that includes family who have invested their future in you). Finally, if you have employees, it is your responsibility to make sure they are doing their jobs and that the business is doing well enough to keep them employed.

Bills must be paid and payments must be collected. Marketing and advertising are other responsibilities. You have to be sure all these wheels are turning all the time. A well-oiled machine takes time to build and takes constant maintenance.

You didn’t want to become your own boss so your life would be less stressful, did you? These are just some of the major disadvantages of being your own boss. Still thinking about it? O.K., well here’s the bright side:

Being Your Own Boss: The Advantages

1.) Money: With a successful business, your money-making potential as the boss is often significantly higher than working for someone else. Let’s face it, all the most successful businesspeople in the world are their own bosses!

2.) Benefits: As a successful business owner, you can name your own schedule.

Vacation? Days off?

Take them whenever you want. No one can say anything when you come in late, leave early, or take a three-hour lunch. If your business is a successful, well-oiled machine, you can do what you want and you deserve to do what you want for all the hard work you’ve done! Ultimately this can mean more time with your family (maybe you’ve even employed your family). Also, if you have enough wealth from your business, you can afford what you need when it comes to healthcare options, and you aren’t tied down to what a company is offering you.

3.) Responsibility: As your own boss, you will always have responsibilities, but if your business is successful, the responsibilities become less of a burden. Things eventually fall into place.

Part of it can be fun! You want to be your own boss so you can make the decisions. You decide how to market your product. It’s a big responsibility because you’ll either fail or succeed, but it’s a fun responsibility because you’re in charge!

The Road to Entrepreneurship: What You Need to Know

Making the decision and taking the steps to become your own boss can be viewed as simple or complicated.

1. Take a Risk: First, you need to decide to take the risk. Not everyone is a risk-taker. If you’re thinking about being your own boss, you probably are.

2. Have a Plan: Plenty of people who want to start their own businesses are risk-takers, and most of them are unsuccessful. You need more than the willingness to take a risk to become a successful entrepreneur; you need a plan. Plans take research. Research is hard work. Do your research, discover your obstacles, come up with solutions, develop action plans. Plan to do this over and over again.

3. Work Hard: You said you were willing to do what it took to be your own boss, well, that’s a lot of dedication and hard work. The hard work will pay off, but you have to be willing to go the distance.

4.) Being Successful:  Whether you’re your own boss or an employee, you should determine what success really means. What do you want out of a career, business, or profession? Knowing the answer to this can help you determine the best fit for you.

The Rewards and Challenges of Entrepreneurship – Navigating the Uncertainty

Being your own boss comes with a certain level of uncertainty. As an employee, you have the security of a steady paycheck and the support of a larger organization.

However, when you’re your own boss, you have to navigate the ups and downs of the business world. Economic fluctuations, changing market trends, and unpredictable circumstances can all impact your success as an entrepreneur.

It’s essential to have a contingency plan and the ability to adapt to unforeseen challenges.

1.) Achieving Work-Life Balance

While being your own boss offers flexibility, it can also blur the boundaries between work and personal life.

Entrepreneurs often find themselves working long hours, including weekends and holidays, to build and sustain their businesses.

It can be challenging to switch off and separate work from leisure time. Striking a balance between work and personal life becomes crucial to avoid burnout and maintain overall well-being.

2.) Building a Support Network

As an employee, you have colleagues and supervisors who can provide guidance, support, and mentorship.

When you become your own boss, it’s essential to build a strong support network. Surround yourself with like-minded entrepreneurs, join industry associations, attend networking events, and seek out mentors who can provide valuable insights and advice.

Having a support system can help you navigate challenges, gain new perspectives, and stay motivated on your entrepreneurial journey.

3.) Continuous Learning and Skill Development

Being your own boss requires a diverse skill set. You not only have to excel in your core business area but also handle various aspects like finance, marketing, sales, and operations.

Continuous learning and skill development are crucial to stay competitive and adapt to evolving business landscapes.

Seek-out learning opportunities, attend workshops or conferences, read industry publications, and stay updated with the latest trends and technologies relevant to your field.

4.) Managing Stress and Uncertainty

Being an entrepreneur can be stressful, especially during the early stages of starting a business.

Financial pressures, the responsibility of making crucial decisions, and the fear of failure can take a toll on your mental and emotional well-being. It’s important to develop effective stress management techniques and find healthy outlets for managing pressure.

This can include regular exercise, meditation, seeking support from loved ones, or working with a business coach or therapist.

5.) Embracing the Rewards of Entrepreneurship

Despite the challenges, being your own boss offers numerous rewards and opportunities for personal and professional growth.

You have the freedom to pursue your passion, create your own vision, and make a lasting impact in your industry. Entrepreneurship allows you to unleash your creativity, take ownership of your success, and shape your own destiny.

The sense of accomplishment and fulfillment that comes from building something from the ground up can be incredibly rewarding.

In conclusion, being your own boss has its advantages and disadvantages. It requires careful planning, perseverance, and a willingness to embrace both the successes and challenges that come with entrepreneurship.

By understanding the potential pitfalls and taking proactive steps to overcome them, you can embark on a fulfilling and successful journey as your own boss.

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Pros and cons to becoming your own boss

4 self-employed job ideas, 5 entrepreneurial traits, is it time to become your own boss, 12 final tips for becoming your own boss, make your move.

Not all workers are cut from the same cloth. While some enjoy the structure and direction an organization provides, you might find fulfillment in having the freedom to lead the show. Maybe you enjoy flexibility, running meetings, or delegating work. Or perhaps you have a brilliant idea you’re sitting on. Whatever it is, running your own business puts you in the driver's seat. 

Being your own boss offers immense independence — but it also comes with increased responsibilities. If you’re going to succeed, you must be flexible, patient, and plan carefully. But if you can’t stop thinking about turning your side hustle into a full-time gig or a business idea into reality, it’s likely worth the effort.

You might idealize being your own boss, picturing total freedom and unstoppable revenue. But it's not always sunshine and roses. Professional freedom is a double-edged sword: you set your own schedule and increase your earning potential but also wear all the hats and are on the hook for every aspect of your business.

Here are some pros and cons worth considering before you start. 

Greater earnings

If you’re a regular employee, industry standards determine your salary. And if you work hourly, you may find it challenging finding a fair wage. As of 2022, the average American hourly worker earned $11/hour , just a few dollars above the $7.25 minimum. 

While overhead costs, market fluctuations, and competitors constrain an entrepreneur or freelancer's bottom line, you have one less limitation: your employer doesn’t control your annual salary or hourly wages. 

You might find it more difficult to build a steady income compared to accepting a salary from an employer. But picking clients, understanding the value of your product or service, and effectively managing time and costs can offer you financial security faster than climbing the corporate ladder.

Flexible schedule

Whether you want a vacation , to spend more time with your kids, or to attend to your mental health , you can manage your schedule if you work for yourself. 

Self-employed workers aren't above time constraints — you’ll still have deadlines or clients that expect you to be responsive and available during specified hours. But you have the freedom to adjust your schedule or take a break if you want. 

And one study found that Americans spend about 50% of their workday performing unnecessary tasks . Working independently means making the most of your time and creating workflows that give you the work-life balance you want. 

Increased happiness

Your employment affects your happiness . When you’re happy at work, it carries over into other areas of your life. And having the freedom to follow your dreams and work on something you care about can fill your life with more meaning and purpose , increasing your happiness levels in every area.

More accomplishments

Starting a business is daunting — and impressive — work. Along the way, you’ll achieve so many things you never thought possible, and accomplishing these interest-aligned goals can improve your emotional well-being . You’ll also likely experience a confidence boost that’ll motivate you to continue forward, in turn accomplishing more and more as you go. 

Disadvantages

Slow progression.

For nearly every business, the first few years are tough. According to a report by American Express , earning a return on investment and becoming profitable takes about 1–4 years.

And if you’ve never done this before, the learning curve is steep, finding customers is slow, and building trust with them takes time and effort. It might be a while before you’re reaping the financial rewards. 

Greater responsibilities

Being your own boss might mean being your own:

Project manager

Salesperson

Customer service rep

Logistics coordinator

Depending on your finances, you might need to hire help. But even so, at the start, you’re the one everyone’s coming to with questions, and that’s a lot of responsibility. You’ll want to understand various crucial business aspects to effectively carry this weight. When going solo, you’re also responsible for your well-being and future. You don’t get employer-established health benefits or retirement funding packages, so make sure you’ve explored your options for individual support. 

Inconsistent income

Working on your own makes you more vulnerable to changes in the market or costly incidentals. If a big contract suddenly drops, a recession hits , or competition overwhelms the market, you'll feel it financially. Before you start, create a robust financial plan with buffers for unexpected setbacks.

You still answer to someone

Being your own boss doesn't mean you work in a vacuum. Ultimately, your clients or customers are your boss. While you might experience a bit more agency regarding your schedule, their needs must be top priority for your business to succeed. 

Independent work is at an all-time high. In 2022, freelancers represented 39% of the American labor market , with even representation across education and qualification levels. 

Here are some of the most in-demand jobs . 

According to the Bureau of Labor Statistics (BLS), nurse practitioners will be the fastest-growing profession through 2031 . And with a nursing license, you can work independently as a medical-industry product or legal counselor. Or, you could gain certification as a legal nurse consultant to assist attorneys.

2. Web development

The BLS expects web development to grow 23% throughout the decade . And a certification program might be all you need: increasingly more employers are embracing workers with certifications over degrees .

If you’re interested in design and coding, you can apply your skills to nearly every industry.

3. Market research analyst

Market research analysts typically provide information to sales, marketing, and product development teams regarding a company’s target audience, industry trends, and market conditions.

If you have strong critical-thinking and analytical skills, you could provide this important service to businesses in nearly any industry. And luckily, the BLS expects the need for market research analysts to grow 19% through 2031 .

4. Business consultant

If you have a business degree or extensive managerial experience, you’ve likely developed the leadership skills and know-how business owners and entrepreneurs find valuable. Depending on your expertise, you might consult with companies to discuss how to streamline human resources policies, build business best practices, and create strategic marketing and sales strategies. 

Because you’ll wear so many hats, being your own boss requires extensive skills. Beyond the technical skills necessary to excel in your chosen industry, you’ll also need to continuously polish your soft skills and develop leadership traits to navigate the ups and downs of starting a business. 

Here are five traits you can foster to think like an entrepreneur :

Patience: Success isn’t linear, and you’ll likely fail , make mistakes , and navigate setbacks. Practicing patience helps you develop a resilient mindset , keep your cool, and accept challenges as part of the growth process .

Self-discipline: With so much responsibility on your shoulders, you must remain disciplined to keep moving forward. Especially at the start, if you slip up or miss too much work, there’s nobody to blame but yourself — and several missed deadlines or objectives could greatly impact your business’s success.

Organization: Businesses have so many moving parts, and the only way you’ll stay on track and juggle every role you’ve taken on is if you’re organized. Strong organization skills help you remain focused and on task while reminding you of important obligations. 

Future-mindedness: To stay motivated and understand why you’re doing what you’re doing, you must never forget the bigger picture. Future-mindedness also ensures you consider important long-term factors, such as how an industry or target audience might develop.

Empathy: The key to your success is building positive relationships — be it with potential clients or networking with other professionals. And empathy helps you show genuine interest in what your target audience wants or what that professional connection says.

Making people feel listened to and understood increases your likeability, in turn increasing the chance a potential client signs up or a networking contact considers you for an upcoming opportunity.

Plus you’ll better understand how to deliver something valuable to your customer base or sell your services to a contact. 

If you're naturally independent and free-spirited, working within the confines of an organization may block your sense of freedom and purpose . Here are a few ways to know it's time to be your own boss:

• The dream doesn’t go away: You've got a million-dollar idea for a business, product, or service and can't stop thinking about pursuing it. You may have already turned it into a side hustle or written the business plan.
• The corporate ladder doesn’t interest you: The corporate ladder feels more limiting than motivating, and office politics get in the way of meaningful work. You feel micromanaged by most managers , like too many meetings could’ve been emails, and that company goals no longer align with your personal values .
• You cringe at the status quo: Many businesses have well-defined structures that make organizational change difficult to carry out. And the larger the company, the more difficult cultural innovation is to manage successfully. If you want to build an innovative and creative business structure, striking out on your own may be the best route. 

You've worked up the courage and have a product or service idea — time to sit down and plan. Here are 12 things to consider during the planning process:

• Double-check that self-employment is right for you. Talk to colleagues, mentors, and friends who’ve built successful businesses to understand the process and set realistic expectations.
• Consider keeping your day job and starting part-time. This’ll help you get your footing and work out any kinks.
• Thoroughly research your product or service’s industry, target consumer, and market opportunities.
• Be honest about your current skill set, defining the technical, hard, and soft skills you need to bring your business to fruition. 
• Analyze your finances and budget your cost of living and startup costs. Consider whether you require a lot of money for overhead or can start your business with existing resources.
• Decide on the best operating model for your business and how you'll interact with new clients, be it freelance, consulting, or e-commerce. And determine whether operating from a home office or in a rented office space makes the most sense.
• Outline every resource you need to start, from business loans to certifications and office supplies.
• Develop branding, marketing, and social media strategies, and consider consulting with a branding agency.
• Work with lawyers and accountants to ensure your enterprise is up to code on legal requirements and bookkeeping.
• Create a well-developed business plan that includes:
• Your purpose, mission, and vision
• Short and long-term goals
• A general startup timeline
• Key milestones and metrics for success
• Financial needs and resources
• Marketing and sales strategies
• Share your business plan with industry professionals and stakeholders to gain investment, support, and clients. 
• Your business depends on you feeling mentally and physically healthy, so remember to prioritize your health. 

Starting a business is daunting, but the hard work pays off. Being your own boss means you gain the freedom to develop a workflow and schedule that works for you. And you’re pursuing something meaningful, which means you’re never wasting your time or feeling purposeless.

Plus the professional development you’ll gain from this experience is next level — you’re becoming a more resilient, skilled, and authentic you with every step.

Elizabeth Perry, ACC

Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships. With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.

Are you being passed over for a promotion? Here’s what to do

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Being Your Own Boss

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Being your own boss comes with a lot of responsibility and isn’t just about taking a break whenever you want to. You have to look at the reality of what being your own boss entails, and not just focus on the glamorous thoughts of freedom. Clear objectives are the key – personal as well as business objectives. You need to be clear about what you want from having your own business and ensure that your goals are realistic before proceeding any further. Think about the following: money, risk, working hours and working patterns, personal development and achievement, independence.

Here is a rundown of pros and cons of being your own boss: – PRONS: 1 – Be Your Own Boss: This is the obvious one. No more boss breathing down your neck, and no more petty office politics or egos to deal with. Score! 2 – The profits are YOUR’S to command: When the money being made is from your blood, sweat, and tears, you’ll be more motivated to take the big risks that result in the biggest gains. No more will you put your all into a project only to receive the same salary as that guy two cubicles over who’s only still there because it’s cheaper than firing him. – There’s less restraint on your creativity: Did you ever have an idea for how to make your job more efficient, or your company more money?

ready to help you now

Without paying upfront

Didn’t it irk you when management completely ignored it, instituted it without giving you credit or reward, or, even worse, gave the credit to those guy two cubicles over? With your own business, you’ll be free from Pointy-Haired Bosses or restrictive policies, and you can finally implement all those wonderful ideas you had – and you’ll reap all the benefits. – Flexibility: it can be much easier to balance your work and personal life when you’re not reporting to someone else. Depending on the nature and demands of the business, you can do what you want when you want. 5 – The self-employed are much better off than the employed when it comes to taxes: depending on where you live, you save come tax-time on company vehicles (I bet you never SAVED money by driving to work before), lunches, and a host of other business-related expenses. 6 – Sense of achievement: building something up yourself can bring a tremendous sense of satisfaction and personal accomplishment.

Many people who are employed find that they reach a stage where they feel restricted and unable to achieve their full potential in their jobs, so running a business can be a natural career progression and an excellent personal challenge. Well, that’s most of the good stuff – but, of course, every coin has two sides. What about the disadvantages, the cons, to running your own business? – CONS: 1 – The Hours: what was once listed as a “pro” has found its way over to the con side. While it’s true that you CAN set your own hours, you really don’t have much choice in which hours are used.

In order to succeed on your own, you’ll find that you require a HUGE investment of hours in which you used to watch your favorite television shows. As an employee, you may have worked 40 hours a week; as a self-employed entrepreneur, you can expect to spend 80 hours or more, and you aren’t even guaranteed that you’ll make any money! Which brings me to the next con… 2 – No Pay For You: as a young, self-employed go-getter, you only get to enjoy any money when your business is actually making it. Heck, most small start-ups don’t even turn a profit for the first year or two.

Keep this in mind when you start allocating funding for payroll and other expenses – after all, entrepreneurs got to eat. 3 – Failure: there’s a statistic floating around that says that four out of every five new businesses fail. I’m not sure that’s very accurate, but it sure as hell feels that way. Most entrepreneurs fail on their first go (the exceptions being folks like Mark Cuban), so it’s more likely than not that you’ll encounter this prospect. Don’t anticipate failure; just be warned that it’s very likely. – Stress, or, “It’s all on You, Atlas”: like the old god, you’ve got the whole world on your shoulders when you decide to work for yourself. It’s not going to be fun: you will be anxious, you will be worried, and you may even get a little paranoid, so if you can’t handle stress well, entrepreneurship may not be for you.

5 – Less job security: when you give up employment to set up in business by yourself, you stand to lose not only your job security but also the many perks that often come with working for another company uch as pension scheme, healthcare, corporate discounts and other financial bonuses. 6 – Multi-tasking: you’ll need to be a bit of a jack of all trades to make your business a success, especially in the early days if you’re the only person working for the company. This means being good at sales, marketing, administration and accounting, for example, as well as managing your core business. Be realistic about what your skills are and whether you’ll be able to run a company successfully.

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Being your own boss and bossing others: the moderating effect of managing others on work meaning and autonomy for the self-employed and employees

• Open access
• Published: 27 February 2022
• Volume 60 , pages 463–483, ( 2023 )

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• Milena Nikolova   ORCID: orcid.org/0000-0002-3247-760X 1 , 2 , 3 , 4 ,
• Boris Nikolaev 4 , 5 &
• Christopher Boudreaux   ORCID: orcid.org/0000-0002-7098-7184 4 , 6  

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We examine the moderating role of being a supervisor for meaning and autonomy of self-employed and employed workers. We rely on regression analysis applied after entropy balancing based on a nationally representative dataset of over 80,000 individuals in 30 European countries for 2005, 2010, and 2015. We find that being a self-employed supervisor is correlated with more work meaningfulness and autonomy compared with being a salaried supervisor working for an employer. Wage supervisors and self-employed supervisors experience similar stress levels and have similar earnings, though self-employed supervisors work longer hours. Moreover, solo entrepreneurs experience slightly less work meaningfulness, but more autonomy compared with self-employed supervisors. This may be explained by the fact that solo entrepreneurs earn less but have less stress and shorter working hours than self-employed supervisors.

Plain English Summary

Simplified summary and main conclusions. Being your own boss provides more work autonomy and meaning than working for an employer. However, the extent to which self-employed and employed people experience more autonomy and work meaningfulness depends on whether they supervise others or not. Solo entrepreneurs tend to have slightly more autonomy but less work meaningfulness than self-employed supervisors. Salaried employees with managerial duties experience higher levels of both work meaningfulness and autonomy compared with colleagues without such duties, meanwhile. Thus, the principal implication of this study is that the well-being benefits of self-employment depend on whether self-employed and employed people manage others.

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1 Introduction

Despite long working hours, low incomes, uncertainty, and high levels of stress, self-employment is widely considered to be one of the most desirable occupations. Over a third of all Europeans, for example, aspire to work for themselves (European Commission, 2013 ). But why do so many people dream of becoming their own boss even if objectively they may end up with more stressful and challenging working conditions?

One possible explanation for this “puzzling” observation is that self-employment, as a self-directed activity, provides more autonomy and control over one’s work. In turn, higher levels of autonomy can lead to the fulfillment of other basic psychological needs such as competence and relatedness that can further improve one’s sense of well-being and vitality (Nikolaev et al., 2020 ; Shir et al., 2019 ; Stephan et al., 2020 ). Footnote 1 Indeed, survey evidence reveals that one of the most common motivations for starting a business, especially in advanced economies, is to gain more freedom by escaping the drudgery of working for others (European Commission, 2013 ). Therefore, understanding how self-employment contributes to individual fulfillment and well-being is of “utmost importance” to business scholars (Wiklund et al., 2019 , p. 579; Boudreaux et al., 2021 ).

More recently, entrepreneurship scholars have started studying essential boundary conditions of the relationship between self-employment and well-being. For example, self-employed people who are pushed into entrepreneurship due to a lack of alternatives (i.e., “necessity entrepreneurs”) are less likely than those who start a business to capture opportunities (i.e., “opportunity entrepreneurs”) to experience high levels of job satisfaction and autonomy (Stephan, 2018 ). However, we still lack sufficient evidence regarding other important job characteristics, such as whether one’s job requires managing others, that can explain well-being differences between the self-employed and employed (Burke & Cowling, 2020a ). Moreover, despite the ample evidence that self-employment promotes job satisfaction, other well-being outcomes are less well-understood in the context of entrepreneurship. In this regard, several recent papers have called for more research on the effect of self-employment on eudaimonic aspects of well-being such as work meaningfulness (Ryff, 2019 ; Stephan, 2018 ; Wiklund et al., 2019 ). Footnote 2

Our study contributes to this line of research by examining to what extent the benefits of self-employment in terms of work autonomy and meaningfulness depend on whether people employ and manage others. We specifically focus on two dimensions of perceived well-being—work meaningfulness and autonomy—that have not received much attention in the literature on self-employment and well-being. Work meaningfulness reflects activities that individuals view as purposeful and worthwhile and bring external appreciation and fulfillment (Rosso et al., 2010 ). As a self-directed and emotional journey, characterized by a deep sense of purpose, self-employment can lead to higher levels of work meaningfulness (Nikolova & Cnossen, 2020 ; Stephan et al., 2020 ). Meaningful work is important because it predicts outcomes such as absenteeism, quit intentions, and organizational commitment (Nikolova & Cnossen, 2020 ; Rosso et al., 2010 ; Steger et al., 2012 ). Moreover, it is an intrinsically valuable aspect of people’s work lives (Ryff, 2017 ) and critical to job crafting and understanding the benefits of different career choices.

We also focus on the implications of supervising others for work autonomy. Having autonomy entails that work outcomes depend on workers’ own initiative and effort rather than superiors or procedures (Hackman & Oldham, 1976 ). As such, working conditions allowing for self-direction, self-organization, and independence contribute to one’s sense of work autonomy.

Understanding whether the well-being benefits of self-employment depend on supervising others is important because the vast majority of small businesses tend to be sole proprietorships that rarely grow beyond a single employee—the original owner (e.g., Parker, 2009 ). Footnote 3 Recent research has pointed out that solo entrepreneurs such as freelancers play a critical role in providing a specialist expertise and knowledge to firms by allowing them to adopt more flexible and agile business models that can help them respond to a dynamically changing business environment (e.g., Burke & Cowling, 2020a ). However, while research has already started exploring the effect of solo entrepreneurship on job creation, innovation, and various firm-level outcomes (e.g., Burke & Cowling, 2020b , c ), far less is known about non-monetary outcomes associated with running a business solo.

Using nationally representative data of over 80,000 individuals in 30 European countries for 2005, 2010, and 2015, this paper shows that being self-employed is associated with more meaningfulness and autonomy, but supervising others moderates the relationship. Self-employed supervisors have higher levels of work meaningfulness and autonomy compared with managers who are not self-employed. At the same time, contrary to previous studies (e.g., Prottas & Thompson, 2006 ), we find that the solo self-employed derive the highest levels of autonomy relative to any other worker group. This finding corroborates recent work underscoring the heterogeneity among the self-employed and the solo self-employed (e.g., Burke & Cowling, 2020a , b ; Pantea, 2020 ; van Stel & van der Zwan, 2020 ), but also highlights that there could be important regional differences that future research can explore.

Overall, our results suggest that the solo self-employed experience high levels of autonomy and meaning. Our finding may indirectly explain the trends documented in the literature that an increasing number of people are choosing to become solo self-employed (Burke & Cowling, 2020a , c ; Shane, 2008 ). Understanding if, when, and why managing others brings autonomy and work meaningfulness is also critical for developing work practices that increase work motivation and worker well-being, which are key to organizational success. However, more research is needed to show the causal nature of these relationships.

2 Self-employment, work meaningfulness, and work autonomy

Meaningful work perceptions reflect the degree to which people believe that what they do at work has personal significance, contributes to finding meaning in life, facilitates personal growth, and positively impacts the greater good (Lepisto & Pratt, 2017 ; Martela & Riekki, 2018 ; Steger et al., 2012 ). Studies find that those who engage in entrepreneurship—a self-directed process that is more deeply aligned with a person’s intrinsic values, needs, skills, and interests—are more likely to derive meaning from their jobs than other workers (Nikolova & Cnossen, 2020 ; Stephan et al., 2020 ). This is because self-employment starts with the choice to do what one considers worth doing. Many entrepreneurs are deeply passionate about their ventures beyond the mere financial gain (Cardon et al., 2012 ). Forming such profound identity connections is a manifestation of the personal significance most self-employed people derive from their work as they pour time, energy, and passion into developing their ventures.

Work autonomy refers to the degree to which a “job provides substantial freedom, independence, and discretion to the individual in scheduling work and determining the procedures to be used in carrying it out” (Hackman & Oldham, 1976 , p. 258). The self-employed enjoy a higher degree of work autonomy and control compared to employees because they have more freedom when choosing the substance of their work, how to complete various work tasks, and, ultimately, why they want to pursue a particular course of action (e.g., Nikolaev et al., 2020 ; Stephan, 2018 ). Footnote 4 This makes them more likely to design their work to be consistent with their strengths, values, needs, and competencies, leading to greater person-environment fit (Baron, 2010 ). In turn, the self-employed are more likely than wage employees to pursue activities that allow them to express their identity in an authentic way, one that is consistent with their purpose and long-term goals (Baron, 2010 ).

3 Supervising others, work autonomy, and meaning

We expect supervisors to derive a greater level of autonomy and meaning relative to those who do not manage others. This might be because managing others brings a sense of self-efficacy and empowerment or because managers receive more timely and accurate information and have more opportunities to participate in decision-making (Johnson, 2000 ). Supervisors may also receive more recognition for their work because their role within the organization is more visible than that of other employees (Johnson, 2000 ). In addition, an essential feature of being a manager is motivating employees, which requires clearly communicating why one’s job matters, how it fits within the bigger picture and can help the company achieve its mission. Supervisors may also derive more meaning from their jobs by coaching and advising subordinates, which can leave them with a greater sense of relatedness because they have a more visible impact on the well-being of others.

4 Meaning and autonomy at work: the moderating role of managing others

While the self-employed derive greater autonomy and meaning from their work than salaried employees, we argue that supervising others can be a vital job feature that moderates this relationship. Specifically, it is unclear whether managers working for an employer and solo entrepreneurs derive similar well-being benefits relative to self-employed people who employ and supervise others. These questions are highly relevant for individuals who consider (solo) self-employment careers.

Self-employed people who have employees (i.e., subordinates) tend to be more optimistic and growth-oriented business owners who are driven by a mission and a sense of purpose (Dellot, 2014 ). In turn, future growth aspirations and a sense of long-term purpose can be particularly impactful for an entrepreneur’s sense of achievement, personal growth, autonomy, and meaning (Nikolaev et al., 2020 ; Wiklund et al., 2003 ). Entrepreneurs who employ others are also more likely to perceive that they have lower workloads, more time to spend on favored tasks, and greater control over their company and future than solo entrepreneurs (Wiklund et al., 2003 ). This is because they can delegate more repetitive and less mentally stimulating tasks to their employees. For example, instead of inputting transactions in the books, they can spend their time analyzing and forecasting trends that can determine the company’s future direction. While wage-employed supervisors can also delegate tasks to others, they are often constrained by the nature of their more specialized positions. For example, various organizational rules, practices, and procedures may restrict the extent to which they can hire new employees, alleviate their own workloads, spend more time on favorable tasks, and, more generally, have input on the company’s mission and future.

H1. Self-employed supervisors experience greater work autonomy and meaning relative to wage-employed supervisors.

The research on whether solo entrepreneurship is associated with autonomy compared with supervisor self-employment is relatively scarce. In one study from the USA, Prottas and Thompson ( 2006 ) find that business owners who supervise and employ others have slightly higher autonomy levels than solo entrepreneurs, but they also have more job pressure. On the other hand, having employees increases job demands and stress (Hessels et al., 2017 ), thus constraining the autonomy and the ability to derive work meaningfulness compared to the solo self-employed.

While some solo entrepreneurs can be freedom-loving or driven by the opportunity to showcase their creative talents (Burke & Cowling, 2020a ), others tend to be survivors who are struggling to make ends meet, in part due to the competitive markets in which they operate (Dellot, 2014 ). The solo self-employed may also experience more uncertainty, job insecurity, and income volatility than the self-employed who employ others. They are also more likely to work extended work hours, face intense time-pressures, and perceive various role-ambiguities since they lack the option to delegate responsibilities to others (Parker, 2018 ). Because solo entrepreneurs have no supervisors and colleagues, they may lack social support (Gumpert & Boyd, 1984 ; Stephan, 2018 ). As such, solo entrepreneurs may experience less autonomy and control over their work schedules relative to those who supervise others (both self-employed and employed supervisors). Thus, we hypothesize that:

H2: Solo-entrepreneurs experience less work autonomy and meaning compared to self-employed supervisors.

5.1 Data and analysis sample

We test our hypotheses using pooled cross-sectional data from the European Working Conditions Survey (EWCS) for 2005, 2010, and 2015 for over 80,000 individuals living in 30 European countries. We obtained the data from the UK Data Service (European Foundation for the Improvement of Living and Working Conditions, 2007 ; 2012 ; 2017 ; 2019 ). This rich dataset contains worker-level information on work meaningfulness, self-employment, and personal and job characteristics, including supervising others.

The analysis sample focuses on respondents from countries polled in all three waves, i.e., the current 27 European Union Member States, the UK, Turkey, and Norway. Holding the country composition constant over time increases the comparability of the results. Each country sample contains about 1000 individuals, though certain countries are oversampled in particular years. Table A1 details the number of observations per country, year, and self-employment status in the final analysis sample.

We restrict the analysis sample to individuals with one employer to avoid spillovers of work meaningfulness and autonomy across different jobs. Furthermore, we exclude those reporting to be self-employed and simultaneously working in the public sector. Due to a low number of observations, we exclude workers in joint private–public organizations, those in nonprofit sectors, and “other” sectors. Since the armed forces sector is primarily public and has only a few observations, we also drop this sector. We restrict the analysis sample to the set of observations with non-missing information on work meaningfulness, autonomy, self-employment, and supervisor status, i.e., the critical variables in this analysis (Table 1 and Table A1 ). For all other variables, to prevent loss of information, we include all observations, including the missing ones, as explained below.

5.2 Variables

5.2.1 dependent variables.

Our dependent variables are work meaningfulness and autonomy, both of which are composite indices created using polychoric principal component analysis, which is a data reduction procedure incorporating the ordered scale of the underlying items (Olsson, 1979 ). We scale both indices to range between 0 and 100 and, for ease of interpretation, standardize them to have a mean of 50 and a standard deviation of 10. The information in Table 1 details the creation of these indices.

First, following the literature (Nikolova & Cnossen, 2020 ; Stephan et al., 2020 ), we create work meaningfulness based on two items in the EWCS (“You have the feeling of doing useful work” and “Your job gives you the feeling of work well done”), which are both measured on a scale ranging from 1 (always) to 5 (never). We reversed the range from 1 (never) to 5 (always) so that higher values on the original scale indicate greater meaningfulness perceptions. The two items have a correlation of 0.6, which is moderately high. The scale reliability coefficient, Cronbach’s α, is 0.75, meanwhile, indicating the appropriateness of combining these variables into an index. Stephan et al. ( 2020 ) demonstrate that a meaningful work index based on these items highly correlates with other known scales in the literature, including Steger’s Work as Meaning Inventory (WAMI), which is the most well-known in the literature. Footnote 5

Second, like in Stephan et al. ( 2020 ), we measure autonomy as a multi-dimensional index combining (1) ability to choose or change the order of tasks, (2) ability to select or change methods of work, and (3) ability to choose or change speed or rate of work (Cronbach’s α = 0.78). These variables capture task autonomy, i.e., the ability to control and self-organize the working process.

5.2.2 Key independent variable and moderator

Our key independent variable, “self-employed,” distinguishes between those owning their own business and a comparison of “salaried workers,” i.e., wage employees in the private and public sectors. The self-employed are those who own their own business or work as freelancers and may be working alone or employ others. Footnote 6 , Footnote 7 The survey unfortunately does not distinguish between incorporated and unincorporated businesses. Footnote 8

Furthermore, supervisor status, which is a binary indicator for whether the respondent manages other people or not, is both a key independent variable and a moderator. In separate regressions, we also consider the number of people the respondent supervises. Because the distribution of this variable is very right-skewed (skewness = 54.5, kurtosis = 4335.5), we take its natural logarithm. While the binary supervisor status captures the consequences of holding a managerial position at the extensive margin, the (natural log of the) number of people supervised captures the intensive margin of supervisory status.

5.2.3 Control variables

Following other papers in the literature based on the EWCS (e.g., Aleksynska, 2018 ; Nikolova & Cnossen, 2020 ), the control variables include standard job characteristics such as income, working hours, tenure (number of years in the current position), job advancement opportunities, and job insecurity, as well as socio-demographic characteristics, such as age, gender, and marital status (Table 1 ). These variables correlate with the probability of being self-employed/supervisor and work meaningfulness and autonomy. In addition to these controls, we include year-, country-, and industry-fixed effects, and interview controls—duration (in minutes), number of people present during the interview, interview month, and interview day—to account for their influence on survey answers. These fixed effects and controls help adjust for unobserved confounders that might otherwise be related to labor market status, meaning, and autonomy.

To avoid bias from dropping observations with missing information, for all control variables, we include the missing observations in the regressions by creating an additional category denoting no answer/refusals/do not know answers. For example, the variable male is coded as 1 if the respondent is female, 2 if the respondent is male, and 3 if there is missing information regarding the respondent’s gender. We form separate dummy variables for males, females and those with missing information on gender, with males as the reference. We transform continuous variables into categorical ones, and we include an additional category to denote the missing information (see Table 1 ). Finally, for all categorical variables, the first category is always the reference (omitted) category in the analyses.

5.3 Econometric model

To test our hypotheses, we estimate the following regression model using ordinary least squares (OLS) with entropy balancing weights. In alternative specifications, we also apply Coarsened Exact Matching (CEM) weights. Specifically, for each individual i in period t , working in industry j , and living in country c is

where DV is our dependent variable (work meaningfulness or autonomy); SELF denotes our measure of self-employment; SV denotes our supervisor measure; \(SELF\times SV\) is an interaction between the self-employment and supervisor status variables; X is a vector of control variables (income, education, household size, working hours, tenure, job advancement opportunities, job insecurity, age, gender, marital status, and the number of children). Our regression models either include a dummy indicator for supervisor status or the natural log of the number of employees supervised. Moreover, \({\beta }_{1}\) , \({\beta }_{2}\) , and \({\beta }_{3}\) are the parameters of interest and \(\gamma\) denotes a vector of parameters for the control variables; \(\mu\) , \(\lambda\) , and δ, denote country, industry, and year fixed effects, respectively. \({\varepsilon }_{it}\) is our stochastic error term, and the subscripts i , c , t , and j relate to the individual, country, time, and industry, respectively.

The main empirical challenge to identifying the causal effects of self-employment and supervisor status on work meaningfulness and autonomy is self-selection. We have two potentially endogenous variables (self-employment and supervisory status), which poses a further complication. Specifically, individuals with certain unobservable characteristics or preferences may be more likely to become self-employed or supervisors. For example, individuals who value work meaningfulness and autonomy or have a high entrepreneurial aptitude may be more likely to start their own business. Similarly, those who do not like taking responsibility and managing others may choose to work as subordinates rather than managers.

Ideally, we would have liked to rely on a randomized control trial eliminating such selection issues, whereby self-employment and supervisor status are randomly allocated. However, such a study is not feasible. An alternative would be to find instruments for self-employment and supervisor status, which would predict both of these variables while being uncorrelated with the error term of Eq. ( 1 ) above. Admittedly, finding such a set of instruments is non-trivial. Given these methodological issues, providing a causal estimate of the true consequences of self-employment and being a supervisor is challenging. Nevertheless, to the extent possible, we attempt to deal with selection issues by relying on an OLS regression using entropy balancing weights. While we have two endogenous variables, the method only allows us to deal with selection for one of them, and we focus on self-employment.

Specifically, in a first step, we rely on a non-parametric matching procedure called entropy balancing (Hainmueller, 2012 ). This preparatory step creates comparable groups of statistically identical individuals based on their observable characteristics, except that one individual is self-employed and the other is not. The second step involves estimating a weighted regression of self-employment and being a supervisor on work meaningfulness and autonomy using the entropy balancing weights. Admittedly, this procedure eliminates issues related to selection on observables, but not necessarily selection on unobservables. Like other matching techniques, with entropy balancing, we have to assume that the selection on unobservables is correlated with the selection on observables.

The entropy balancing method is arguably more econometrically and practically advantageous compared with standard propensity score and other matching methods. The main advantages include efficiency, improved covariate balance, and removing the need to tinker with the tolerance levels and the choice of the covariates (Hainmueller, 2012 ). First, entropy balancing allows for matching on both moments of the covariate distribution, both the mean and the variance, which is more precise and superior to matching only on the mean as most other matching methods do. Second, the entropy balancing does not drop observations without exact matches, which allows us to keep the sample composition between OLS estimations and the entropy balancing constant and makes the results directly comparable. Third, the generated weights allow achieving balance in terms of the mean and variance of the covariate distribution of both the treated (self-employed) and comparison (salaried employee) groups. Fourth, the entropy balancing takes into account all covariates, while other matching techniques require picking and choosing matching covariates, which is based on researcher discretion and introduces bias.

To calculate the entropy balancing weights, we rely on Stata’s ebalance user-written package (Hainmueller & Xu, 2013 ). We ensure that the treated and comparison groups are statistically identical along all control variables based on their means and variances. The balancing test results are available in Appendix Table A3 .

In robustness checks , we compare our results with simple OLS regressions (Table A4 ) and weighted OLS regressions using another technique, Coarsened Exact Matching (CEM) (Table 4 ). Unlike propensity score matching (PSM), the advantage of CEM is that CEM does not estimate the probability of being treated. This method is also advantageous when there are continuous matching covariates or covariates with a lot of categories (Greifer & Stuart, 2021 ). Instead, it coarsens the covariates in strata and assigns weights to individuals depending on how close they are to the treated group (Gustafsson et al., 2016 ; Iacus et al., 2009 , 2012 ; King & Nielsen, 2019 ). As with the entropy balancing, these matching weights are particularly useful as they can be included in subsequent regression analyses. Footnote 9 The main reasons why we did not select the CEM as the main method for the analysis are that it involves researcher discretion in choosing the matching covariates and that it drops observations for which no match is found (Greifer & Stuart, 2021 ). Our CEM estimations use a matched sample with a total of 58,001 observations, matching on select covariates—age, gender, education, household size, marital status, and number of children. We ensure that the treated and comparison groups are statistically identical along all control variables based on their means. The balancing test results are available in Table A5 in the Appendix, and the matching diagnostics indicate a successful match, as reported by the decreased L 1 statistic in Table A6 (as compared to Table A5 ).

6.1 Descriptive statistics

The self-employed have higher work meaningfulness and autonomy perceptions than their wage counterparts (Table 2 ). Specifically, the mean work meaningfulness for the self-employed is 52.6 (median = 58.7), compared with an average value of 49.5 for salaried (i.e., wage) employees (median = 52.7). Similarly, the self-employed enjoy higher levels of autonomy compared with wage employees. The mean (median) level of autonomy perceptions for the self-employed is 57.1 (58.8) compared with 48.7 (51.3) for wage employees.

Furthermore, Table 2 provides information about the differences in the individual and job characteristics between the self- and wage-employed. In addition to having more autonomy and meaning, business owners are also more likely to be supervisors (30%) compared to wage employees (14%). Among supervisors, the average number of people supervised is 12.6 employees. For the self-employed, it is 6, and for the non-self-employed, it is 15.2 (not shown in Table 2 ). At the same time, the average number of workers supervised is slightly lower for the self-employed (1.8) compared with 2.1 for wage employees.

Table 2 further details that the self-employed also work longer hours, are more likely to be older, high-income, male, and are less likely to have tertiary education than private and public sector employees. Table 2 demonstrates that business owners differ from wage employees along several dimensions, which is why our empirical analyses take into account these characteristics as matching and control variables.

6.2 Baseline empirical results

Table 3 presents the baseline results based on OLS regressions applied using entropy balancing weights. Specifically, models (1)–(4) provide results for work meaningfulness as the outcome, while in models (5)–(8), the dependent variable is autonomy. The main difference between models (1) and (2), and models (3) and (4), respectively, is the supervisor variable measurement as either a binary or continuous variable. We only report the coefficient estimates related to the variables of interest for brevity, but Table A2 details the full econometric output.

Models (1)–(2) and (5)–(6) of Table 3 confirm other studies’ findings that being your own boss comes with considerable autonomy and meaningfulness benefits compared with wage employees. Specifically, the self-employment work meaningfulness premium is about 2.9–3.0 points on a scale of 0–100 and is statistically significant. A natural question is how big or small this coefficient estimate actually is. Evaluated at the overall sample mean of 50 for work meaningfulness, this is about 6%, which is a relatively moderate impact. Given that the work meaningfulness and autonomy indices are standardized to have a mean of 50 and a standard deviation of 10, this corresponds to a difference of about 28–29% of a standard deviation compared to wage employees. Footnote 10 This is an economically significant difference and is especially relevant given that work meaningfulness determines a range of labor market outcomes (Nikolova & Cnossen, 2020 ; Rosso et al., 2010 ). Examining models (5)–(6) of Table 3 , the autonomy premium of self-employment is about 65–67% of a standard deviation compared to wage employees. Evaluated at the sample mean of 50, this constitutes about 13%.

Table 3 also demonstrates that managing others brings meaningfulness and autonomy compared to being a non-supervisor. Based on the magnitude of the coefficient estimate of the supervisor variable (models (1) and (5)), the difference in work meaningfulness (autonomy) between supervisors and non-supervisors is 8.6% (17%) of a standard deviation. In addition, models (2) and (6) indicate that the number of people the respondent manages positively influences work meaningfulness and autonomy. Specifically, since the number of subordinates is natural log-transformed, we can interpret its coefficient estimate as the autonomy/meaningful consequences of roughly doubling the number of people supervised.

6.3 Empirical tests of H1 and H2

Importantly, Table 3 furnishes empirical tests of Hypotheses 1 and 2, which stipulate the moderating role of being a supervisor for work meaningfulness and autonomy by relying on an interaction term. Specifically, we examine whether and how the relationship between work status (i.e., self-employment or wage employment) and work meaningfulness and autonomy depends on supervising others. We have also calculated the predicted values for all groups based on models (3) and (7) for ease of interpretation and presentation.

The first comparison we are concerned about is between self-employed supervisors vs. wage-employed supervisors (H1). To test this hypothesis, Fig.  1 reports the predicted work meaningfulness for both groups, based on the results presented in model (3) of Table 3 . The results suggest that the predicted work meaningfulness of self-employed supervisors is 53 points on a scale from 0–100, whereas that of wage-employed supervisors is 50.59 points on the same scale. In other words, the meaningfulness benefit of being a self-employed supervisor rather than a wage-employed supervisor is the difference of 2.41 points. This difference is statistically significant (F-stat = 74.14, p -value = 0.000). Its magnitude is also modest but economically meaningful: we observe a 4.8% increase in work meaningfulness for self-employed supervisors compared to wage-employed supervisors when evaluated at the sample mean of 50.

Predicted work meaningfulness, by self-employment and supervisor status, with 95% confidence intervals

Regarding autonomy, based on model (7) of Table 3 , Fig. 2  demonstrates that self-employed supervisors experience about 3.19 points more autonomy than wage-employed supervisors (56.86 vs. 53.67, F-stat = 259.42, p -value = 0.0000). The magnitude is economically meaningful: we observe a 5.94% increase in autonomy for self-employed supervisors compared to wage-employed supervisors when evaluated at the sample mean of 50. All in all, these results demonstrate that being a self-employed supervisor provides greater levels of autonomy and work meaningfulness compared with having a similar position for those who are not self-employed. This evidence supports Hypothesis 1.

Predicted autonomy, by self-employment and supervisor status, with 95% confidence intervals

Furthermore, the intensive margin results in Figs. 3  and 4  provide interesting nuances. Figure 3 , based on model (4), demonstrates that this advantage for the self-employed is only up to managing about 55 employees (ln (55) = 4). Beyond that point, there is no difference between the work meaningfulness levels of wage employees and the self-employed. In addition, the intensive margin analysis in Fig. 4  suggests that the advantage for the self-employed supervisors is up until about 55 employees. Beyond that point, salaried supervisors experience more autonomy compared with the self-employed supervisors.

Marginal effect of self-employment on work meaningfulness, by the number of employees supervised (natural log)

Marginal effect of self-employment on autonomy, by the number of employees supervised (natural log)

Next, we turn to Hypothesis 2, which postulates that solo self-employment provides fewer autonomy and meaningful benefits than being a self-employed supervisor. The coefficient estimates of the interaction terms in models (3) and (7) and the predicted values in Figs.  1 and 2  demonstrate nuanced results. Specifically, while being a self-employed supervisor is marginally more meaningful than working alone as your own boss, solo entrepreneurs experience substantively more autonomy. The solo self-employed’s predicted work meaningfulness is at 52.42 points, while it is at 53 points for the self-employed supervisor. This difference is very small—approximately a 1.11% increase in work meaningfulness, evaluated at the sample mean of 50. Yet, the difference is statistically significant (F-stat = 10.43, p -value = 0.0012). For autonomy, the solo entrepreneurs’ predicted autonomy levels are at 57.14 points, while self-employed supervisors are at 56.86. Again, this is a rather modest difference (less than 1%), but it is statistically significant (F-stat = 4.38, p -value = 0.0363).

These results may seem paradoxical at first. Nevertheless, they are in line with empirical evidence suggesting that solo entrepreneurs may lack social support (Binder & Blankenberg, 2021 ) but have more significant preferences for autonomy (van Stel & van der Zwan, 2020 ). The desire for autonomy and freedom is one of the most important motivations for starting a business (European Commission, 2013 ; van Gelderen & Jansen, 2006 ). At the same time, managing others brings work meaningfulness to the self-employed supervisors, likely because it ensures interactions with colleagues and taking responsibility for one’s employees. Yet, it may also bring them less autonomy relative to their solo counterparts because of the associated job demands and stress (Hessels et al., 2017 ). Therefore, our results only partially support H2.

All in all, Table 3 and Figs.  1 and 2  demonstrate that self-employed supervisors have the highest levels of perceived work meaningfulness compared to any other group. However, it is the solo self-employed who enjoy the greatest benefits of autonomy. This finding may explain the recent increase in solo entrepreneurship in Europe (van Stel & van der Zwan, 2020 ).

6.4 Robustness checks

Table 4 replicates our findings using Coarsened Exact Matching (CEM) estimation and demonstrates that the results are not sensitive to the matching method. The results are qualitatively similar to the estimates using the entropy balancing method. In contrast to the entropy balancing, the CEM uses a matched sample with a total of 58,001 observations, matching on select covariates—age, gender, education, household size, marital status, and number of children. The matching diagnostics indicate a successful match, as reported by the decreased L 1 statistics in Tables A5 and A6 in the Appendix. Overall, the results appear robust to the choice of matching techniques.

In addition, Table A4 reports the OLS results, which generally show similar magnitudes of the coefficient estimates as those based on the two matching techniques. This suggests that our results are generally robust to certain self-selection issues.

Furthermore, in Appendix Table A7 , we demonstrate that our baseline findings are insensitive to restricting the regression to the set of common non-missing observations for all analysis variables. The results appear to be slightly smaller in magnitude compared to the baseline specifications. The interaction terms in models (3) and (4) turn insignificant instead of being marginally statistically significant, though they retain their signs and magnitudes. Limiting the sample to the set of non-missing observations does not alter our main conclusions, providing further confidence in our results.

6.5 Potential explanations and alternative dependent variables

This section explores potential explanations for our main findings that (i) self-employed supervisors derive more autonomy and work meaningfulness compared with wage supervisors and (ii) solo entrepreneurs have slightly more autonomy and slightly less meaningfulness compared with self-employed supervisors. To that end, we utilize additional dependent variables capturing stress, working hours, and income (Table 5 ). The number of observations differs from those in the main analyses in Table 3 due to the availability of these additional dependent variables. For ease of interpretation, Figs. A1 – A3 in the Appendix demonstrate the associated marginal effects. First, based on Figs. A1 – A3 , wage supervisors and self-employed supervisors have statistically indistinguishable levels of predicted stress levels (F-stat = 0.04, p -value = 0.8428), and income (F-stat = 0.60, p -value = 0.4384), and self-employed supervisors have higher predicted working hours, conditional on all of the included controls and entropy balancing weights (F-stat = 12.97, p -value = 0.0003). Yet, despite that, our results demonstrate that they derive more meaningfulness and autonomy from the work that they do, compared with their wage counterparts. This finding suggests that being a self-employed supervisor brings intrinsic work benefits compared with being a wage supervisor.

Second, the findings in Table 5 and Figs. A1 – A3 indicate that self-employed supervisors have higher stress, longer working hours, but also higher incomes than solo entrepreneurs. All differences are statistically significant ( p -value = 0.0000). The fact that self-employed supervisors are more financially successful may be one reason why they experience slightly more work meaningfulness than solo entrepreneurs. At the same time, the solo self-employed enjoy less stressful and intense working lives, contributing to their higher levels of autonomy.

7 Discussion and conclusion

This study finds that while being your own boss significantly increases autonomy and meaning at work, these non-pecuniary benefits depend on managing others. Self-employed supervisors derive higher perceived work meaning and autonomy compared to managers who are not self-employed. These work meaningfulness and autonomy premia for the self-employed supervisors are despite working longer hours and earning the same as wage supervisors, suggesting that being a self-employed supervisor brings tangible non-monetary benefits not captured by conventional measures of working conditions.

At the same time, however, solo entrepreneurs experience slightly higher levels of work autonomy than self-employed supervisors, even though they experience marginally lower work meaningfulness. This finding is interesting and fits with recent results on the solo self-employed in Europe (e.g., Burke & Cowling, 2020c ; van Stel & de Vries, 2015 ; van Stel & van der Zwan, 2020 ). In particular, the share of the solo self-employed in Europe has increased in the past decades because firms are looking for more agile and flexible work forms (Burke & Cowling, 2020b , c ) and because many workers seek autonomy (van Stel & van der Zwan, 2020 ). In addition, solo entrepreneurship may be more compatible with home working and caregiving (Kim & Parker, 2020 ), which may not be more meaningful than being self-employed and employing others but certainly provides freedom and flexibility.

To our knowledge, our paper is the first to demonstrate that the solo self-employed end up experiencing more autonomy compared with any other workers. Of course, the group of solo self-employed is quite diverse (CRSE, 2017 ). It includes both the precariously employed low-wage necessity entrepreneurs and the highly educated and high-earning freelancers. Yet, our results are not consistent with a precarious employment explanation and indicate that solo entrepreneurs do not perceive these conditions as constraining their autonomy. This may be because solo entrepreneurs experience their working lives as less stressful than supervisors who are self-employed or working as wage employees (Fig. A3 ). In addition, solo entrepreneurs may have fewer job demands, but high job control or can better manage their work-life balance or family obligations (Kara & Petrescu, 2018 ). For example, research finds that freelancers in the UK report greater leisure satisfaction than other self-employed workers and salaried employees (van der Zwan et al., 2020 ). Yet, despite these autonomy benefits, solo self-employment does not bring the same fulfillment and purpose as supervisor self-employment, likely because it limits the ability to communicate and form relationships at work.

Our findings advance the literature in several ways. First, like other papers, we show that entrepreneurship and self-employment can drive important subjective well-being outcomes such as work meaningfulness in addition to job satisfaction and autonomy. However, it is unclear to what extent these outcomes are related to each other. For instance, higher levels of autonomy may allow people to derive more meaning from their work. Similarly, meaningful work can moderate the relationship between autonomy and job satisfaction such that people who have less autonomy at work may still derive high levels of job satisfaction from their work if they find their jobs more meaningful. Given the relevance of work meaningfulness and autonomy for various organizational and well-being outcomes such as withdrawal intentions and organizational commitment (Rosso et al., 2010 ; Steger et al., 2012 ), a natural next step will be to examine what other factors may contribute to feelings of meaningfulness at work for both the self-employed and the employed.

Second, and more importantly, our results imply that not all self-employed people derive the same level of autonomy and meaning from their work. Specifically, we find that self-employed supervisors are slightly more likely to experience higher levels of meaning at work relative to entrepreneurs who do not manage others. Yet, as explained, the level of autonomy that the solo self-employed have exceeds that of any other worker group. In that sense, our paper identifies a critical boundary condition in the literature on well-being and entrepreneurship. This is important because many people find entrepreneurship a desirable career option primarily due to its benefits in terms of autonomy.

Nevertheless, our results should be interpreted with caution as they are not causal. The main challenge to identifying causal results is the self-selection in self-employment and supervisory roles. While we have attempted to mitigate these issues using entropy balancing, CEM, and by providing additional robustness checks, we cannot rule out endogeneity issues.

Against this backdrop, our paper leaves many opportune avenues for future research for which additional panel data and causal techniques are urgently needed. For example, longitudinal data availability will allow for further refinement of the methods employed to study the relationships and hypotheses proposed in this paper. They will enable us to understand how work meaningfulness and autonomy change over the entrepreneurial journey for the same individuals. Panel data will also allow using techniques that account for the self-selection into different occupational positions (e.g., solo vs. self-employed supervisor). They will also furnish an understanding of whether career transitions and entrepreneurial failure alter entrepreneurs’ ability to derive meaningfulness from work. In addition, this study’s results are based on a European sample of relatively economically advanced countries. It is an open question of whether the same findings apply in other contexts, and especially in developing countries, where the nature of entrepreneurship is more precarious and necessity-driven.

Relatedness is a construct based on self-determination theory (Deci & Ryan, 1985 ) that refers to having supportive and caring relationships with others (Martela & Riekki, 2018 ; Nikolova & Cnossen, 2020 ).

Economists typically think of eudaimonic well-being as having meaning and purpose in life (Fabian, 2020 ; Graham & Nikolova, 2015 ; Nikolova & Graham, 2020 ; OECD, 2013 ). Yet, psychologists view eudaimonic well-being as multi-dimensional and comprising aspects, such as competence, autonomy, personal growth, and relatedness (Ryff, 1989 , 2014 , 2019 ). In this paper, we use the terms “work meaning” and “work meaningfulness” synonymously.

For example, in the European Union, about 70% of all self-employed do not have employees (OECD, 2017 ).

For example, in European countries, most self-employed (about 80%) can set their working hours, and about half can determine the content and order of their tasks (Eurostat, 2018 ). This allows them to approach their work following their convictions and beliefs, making choices independently of others, which, in turn, can lead to the fulfillment of their basic psychological need for autonomy (Shir et al., 2019 ).

The most widely-accepted multi-dimensional scale in the psychology literature is the Work as Meaning Inventory (WAMI) (Bailey et al., 2019 ; Steger et al., 2012 ), which conceptualizes and measures work meaningfulness as a multi-dimensional eudaimonic state, comprising positive meaning (i.e., a job that the individual views as meaningful), meaning-making through work (i.e., work that enables making sense of the world), and greater good motivations (i.e., having a socially useful job). WAMI reflects individuals’ perceptions about having a job that is worthwhile, meaningful, and has broader social value added. Unfortunately, the WAMI is not collected in any nationally representative survey data, which has limited its use to ad-hoc studies in the psychology literature. Consequently, like in Nikolova and Cnossen ( 2020 ), we created a meaningful work measure based on available information in nationally-representative data that most closely matches the WAMI dimensions.

Economists typically define entrepreneurship in terms of business ownership and self-employment, while business scholars prefer studying the behavioral choices related to starting a new venture. As such, in the business literature, entrepreneurship is typically defined in terms of opportunity recognition and new business venture creation amidst risk and uncertainty (McMullen & Shepherd, 2006 ; Parker, 2018 ; Shir, 2015 ). A vast literature in economics uses self-employment data (e.g., Fairlie ( 1999 ), Fossen ( 2020 ), and Parker and Robson ( 2004 )).

In 2015, the EWCS interviewers had to clarify the following: “By ‘employee’ we mean someone who gets a salary from an employer or a temporary employment agency. ‘Self-employed’ includes people who have their own business or are partners in a business as well as freelancers.” In addition, the questionnaire instructions specified that: “Respondents who work as an employee for their own business should be coded as self-employed. Members of producers’ cooperatives should also be coded as self-employed. Family workers should determine which alternative matches their situation best” (European Foundation for the Improvement of Living and Working Conditions, 2015 , p. 5). The 2005 and 2010 waves do not include such instructions. To account for possible variations in the measurement of self-employment across the survey waves, we include time and industry fixed effects in the analyses.

Incorporated businesses are arguably a better proxy for entrepreneurship. Incorporated businesses perform cognitive tasks requiring creativity and flexibility, while unincorporated businesses typically engage in non-cognitive activities, such as carpentry, transportation, or landscaping (Levine & Rubinstein, 2017 ).

To obtain a successful match, the procedure must reduce the distance between all variables (Iacus et al., 2019 , 2012 ). We report the L 1 distance for all variables to compare the imbalance measurement before treatment (Appendix Table A5 ) and after treatment (Appendix Table A5 ). The L 1 distance should be smaller post-treatment for a successful match. A zero indicates no difference between the groups in that category, and the multivariate L 1 distance provides an indication of the overall imbalance measurement. A successful match will also reduce this statistic. The results suggest a successful match, since the L 1 statistic for each variable as well as the multivariate L 1 statistic is smaller in Appendix Table A5 than in Appendix Table A4 . As a result, we are able to use the matching weights in our empirical analysis to adjust for the self-selection concern.

Compared with the coefficient estimate for the richest income quartile of about 1, for example, the self-employment premium related to meaningfulness of about 2.9–3.0 points is about 2–3 times larger. Compared with the coefficient estimate for job advancement opportunities of 3.4, the self-employment work meaningfulness premium is a bit smaller.

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Acknowledgements

The authors would like to thank the Editor Thomas Åstebro and two anonymous referees for extensive comments and feedback. In addition, we have benefitted from the comments and suggestions of Antje Schmitt, Marjan Gorgievski, and participants at the 2020 Entrepreneurship Research Meeting at the University of Groningen. Finally, we thank Viliana Milanova for proofreading the final version of the manuscript. All errors are ours.

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Nikolova, M., Nikolaev, B. & Boudreaux, C. Being your own boss and bossing others: the moderating effect of managing others on work meaning and autonomy for the self-employed and employees. Small Bus Econ 60 , 463–483 (2023). https://doi.org/10.1007/s11187-021-00597-z

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The Pros and Cons of Being Your Own Boss

5 min. read

Updated October 25, 2023

One of the more common half-truths of startups and entrepreneurship is the one about being your own boss.

I’ve called it a myth before, but half-truth is better because there are some real positives with being your own boss.

But naturally, there are a number of negatives, too.

I’ve spent a lot of years theoretically “being my own boss,” including more than 10 years as sole proprietor business planning consultant, working on my own with clients; and more than 10 years building a company, as founder and owner, working with employees.

In my case, working to “be my own boss” was never really why I did what I did.

I left a good job to start consulting on my own because I wanted to do the work, not supervise others. And I built a software company because I believed the product was needed.

The “own boss factor” was something that simply came along with it.

Before I get started, a quick note on one of my favorite start-your-business books, Melinda Emerson’s  “Become Your Own Boss,”  recently updated with a new version.

I’ve known Melinda for years and watched her earn her excellent reputation through hard work, common sense, and telling the truth.

Honestly though, I’ve never been a fan of the title of her book, because of the underlying ambiguity of being one’s own boss (and I’ve told her that).

But, this is one of the top books on going out on your own, and I highly recommend it. Along with Pamela Slim’s  “Escape From Cubicle Nation,”  it’s one of the two best books on the subject out there.

I also taught a piece of a longer presentation, embedded here, about being your own boss. It’s a theme that’s bugged me for a while. It’s an excerpt from my video  Startups and Entrepreneurship: Beyond the Clichés.  I’ve left that one at the bottom of this article, in case you’re interested.

• Pros of being your own boss

1. You’re at the wheel. You make the decisions yourself.

There’s great satisfaction in being able to act on hunches, make guesses, and  just do it . Take the risk, spend the money.

We often talk about owning the job as a key to job satisfaction; and when you’re the boss, you own it. Not having to ask anybody can mean a great deal.

This is a big deal to me. I’m one of those people (are you also?) who feels safer when I’m driving than when I’m a passenger. Especially in business.

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2. You set your own hours.

Maybe you’re an early riser, or you don’t want to work certain afternoon hours to do kids’ activities instead, or your own activities. Maybe you like to work in spurts.

When you are your own boss, you eliminate the old-fashioned need to warm a chair for specific hours.

You become responsible for your output, not your hours (unless, of course, you are a service business with clients—that’s in the cons, below).

3. You set your own work style, workplace environment, and (to the extent that you can afford it) workplace equipment.

Some bosses are better than others at upgrading the technology, choosing the location, arranging for parking, and so on.

How fast is your internet? When you’re the boss, that’s up to you.

Do you like a stand-up desk, or any desk? Up to you. A good view? Good coffee in the kitchen? That’s all up to you.

4. You set your own location.

Don’t stay in Cleveland if you prefer Klamath Falls.

Don’t take that frustrating subway commute to Manhattan, stay in Brooklyn. Meet people in Starbucks, or spend every day in Starbucks—why not? You’re the boss. You decide.

• Cons of being your own boss

1. Your customers are your boss. Your clients are your boss.

Over and over, during the decade and a half that I was a sole proprietor consulting on business planning with clients, I ended up late at night, tired, stuck with finishing up a presentation due the next day.

I was never able to go the normal worker’s route, in which you either get it done or have a reason for not having done it. I needed the business, I needed the money, so I wasn’t in charge. My clients were in charge.

Even later in my career, after I’d built a business selling to thousands of customers every month, the customers were in charge.

We need to get the software finished, tested, and published. We needed to keep our website up to date. We needed to meet marketing deadlines, product development, finances, the whole thing.

In a business, the health of the business is your boss.

2. Your commitments—to vendors, to allies, to business activities—are your boss.

You can’t miss commitments very often and still be successful. Your word is your most powerful asset.

Meetings, deadlines, and promises are commitments. You can’t really run a business without them.

3. If you have employees, there are some ways in which your employees are your boss.

You lead, and—whether you like it or not—leadership is as leadership does. Meaning that your employees are watching you.

You can’t do less than you ask of them. You as boss is probably the most important factor in so-called corporate (or company) culture.

If you leave early, everybody leaves early.

4. You spend your own money.

Do you see point three in the pros, about you making decisions on equipment, technology, bandwidth, and so on?

Great—but then you have to pay for everything you decide you need. It comes out of your budget, not your employer’s budget.

When times are tough you may need that upgrade; but can you pay for it?

5. You earn what you earn.

You have no assurance of salary and compensation. It all depends on you, your business, your clients, your market, and your business offering.

The sole proprietor, startup founder, or small business owner doesn’t have an employer setting a stable compensation plan. There is no real assurance of how much you’ll have next month.

Clarify your ideas and understand how to start your business with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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Home » Business Cycle » Be your own boss

How to be your own boss

This thought creeps up on everyone with a steady job now and then. You crave something besides the 9-to-5, something that doesn’t involve answering to a higher-up or checking in each time you want to stray from a predetermined process or operational goal. Have you ever wondered how to be your own boss ? It’s got to be better than what you’re currently doing, right? 

Yes and no. Self-employment can be a wonderful step to finding a fulfilling career , but it’s also not as easy as just setting out and deciding to change the world through your particular product or service. We’ve put together some strategies to guide you as you make this shift.

Reach new levels of success as your own boss

Advantages of being your own boss

There are many advantages of being your own boss – but there are also plenty of disadvantages. Let’s start with the good:

You control your hours

Flexible hours are likely a big draw if you’re looking to be your own boss . For parents, those nearing retirement and anyone who feels stifled by a 9-to-5, the ability to work when you want is the true definition of freedom. Want to surf in the morning? More of a night owl? When you are your own boss, you can live the life you want.

You control your earnings

Forget asking for a raise. As your own boss, all you have to do is raise your standards – and there’s no limit to what you can make. Your employer won’t limit your salary based on the market, industry or what others are being paid. And you keep every last cent of profit for yourself.

You control the decisions

We’ve all had to deal with a micromanager or a toxic coworker at some point. Being your own boss means no more people telling you what to do. No more managers to “consult.” No more coworkers questioning you. Bonus: When you’re responsible for the decision-making, that also means you get the credit for every achievement. 

Downsides of being your own boss

Sounds great, right? Before you take the leap, understand that the total control that is the greatest advantage of being your own boss also has downsides:

No steady paycheck or benefits

This is the biggest drawback of being your own boss. If a big contract ends, a client takes your work in-house or there’s an economic recession that reduces demand, you could lose work. You also won’t have employer-subsidized health insurance or 401K benefits. You’ll need strategies for dealing with this uncertainty before it causes you stress.

You have to do everything

To be your own boss , you don’t just control the decisions – you have to execute on them as well. Networking, marketing , building a portfolio or website, getting on social media , staying ahead of industry trends, buying materials and paying bills will all fall to you.

It’s hard work

All of those tasks just listed? They don’t pay. You need to take into account these administrative tasks, as well as lack of benefits, when you calculate how much you need to earn – and how much you need to work. And you’ll always need to be “on:” looking for new opportunities and making connections everywhere. Make sure you have the drive to put in the work. 

What careers can you be your own boss?

You can turn nearly any skill set into a career where you can be your own boss . The best candidates are jobs that already have somewhat flexible timelines and that can be done from home. Here are some options to consider:

• Freelance writer
• Marketing consultant
• Personal chef
• Graphic artist
• Website designer
• In-home child care
• Photographer
• Life, business or health coach
• Real estate agent
• Party or wedding planner
• Personal trainer

Whether you want to work independently or recruit a team, there are hundreds of jobs where you can be your own boss . You’re only limited by your imagination and willingness to put in the work.

Tips for how to become your own boss

Making the jump into entrepreneurship is a bold decision. If you’ve spent most of your life working for others, you have likely been insulated from many aspects of running a business. But to be your own boss , you’ll need to be the one coming up with solutions – and taking the blame. Learning how to be your own boss is a process of trial and error and requires deep belief in yourself and your vision. Use these tips to adopt a winning mindset right out of the gate. 

1. Realize that you are the CEO of your life

According to marketing guru Jay Abraham , seeing yourself as the CEO of your own life is one of the best ways to take control and become 100% accountable for where your decisions lead you. You don’t need to be your own boss to act as the CEO of your life, but you may want to be after you see the enormous benefits of taking proactive control of creating a meaningful existence.

Venturing into entrepreneurship makes you the top dog, chief visionary, master strategist, ultimate decision-maker and ace of accountability. This is a tall order, but a necessary one; once you break free from the daily grind of working for someone else, every element of your business and your life is in your hands. It’s up to you to decide what you can achieve and what you want and need.

If you don’t have the dedication and drive to see it through, it won’t happen. This type of mindset will help you strengthen critical leadership skills in every area of your life and leads many to strike out on their own so they can exert even greater control over their destinies.

2. Combine your passion and your skills

To discover how to become your own boss successfully, you must unlock your passion and your skill set, then combine them into a winning business idea. If entrepreneurship appeals to you but you aren’t entirely sure where to apply your talents, think about your top skills and your experience. Most of all, think about past jobs you found fulfilling.  

Still not sure what it takes to be your own boss ? Look into what fields are particularly rewarding for the self-employed, and let others who have taken this path before you provide guidance along the way.

3. Figure out your finances

Before you learn how to be your own boss , you have to know how much money it will take to live on and build your business. Though money may not actually buy happiness , having enough to be comfortable is one of the keys to relieving stress and having an overall positive state of well-being.   

What are your monthly living expenses? How much do you intend to spend on equipment or other necessities? What sort of marketing plan do you have in mind as you scale your business, and how much are you willing to spend on that? How much do you need in the bank before you feel comfortable going all-in with your new venture? How will you know when it’s time to quit your day job?   

Don’t resign your current position in a moment of passion only to find out that you need the money. Keeping your side venture while you slowly scale up relieves pressure and helps provide financial support while you figure out how to turn your passion into profit. You ’ll end up working some nights and weekends to build your business, but it will be worth it.

4. Invest, invest, invest

Learning about investing is an essential part of planning to be your own boss . Tony Robbins has said investing is the most important financial advice he can provide to the self-employed. “Take advantage of the power of compounding ,” he suggests, and let one small investment grow into a money machine over time. This money continues to accrue on the side, no matter what you’re doing; it can be your Dream Bucket money , your retirement and your emergency fund all at once. It can also help you achieve financial freedom so you no longer have to work a day job to fund your ideal lifestyle.

You aren’t limited to investing in the financial arena, either. Being your own boss means constantly investing in yourself. Enroll in classes, read books about leadership and keep track of new developments in your industry. Create a personal growth plan that addresses career advancement as well as enhances your relationships. The more you invest in yourself, the more likely it is your clients will invest in you.

5. Build your foundation

Begin putting the infrastructure in place so you are ready to commit full-time when the time is right. Research potential networking groups, such as mastermind groups , professional clubs or events like Tony Robbins’ Business Mastery. Find a mentor who can help you develop your skills and connect you with the right people. Use the power of proximity to elevate yourself in every possible way. You’ll also need to figure out where your permanent office space will be and make sure you have all the equipment needed, including hardware and software, to turn your side-gig into a career.

Before you take the leap, create a loyal customer base . Your mentor or mastermind group can help you find the right customers. Make sure you diversify: much like diversifying your financial portfolio , diversifying your freelance projects prevents you from being dependent on any one client. It’s comforting to have one large, well-paying client that you know you can rely on – but if you devote the bulk of your time and energy to them, what will happen if they abruptly struggle financially or stop using your services? You’ll be cut off from that steady income stream you’ve been cultivating, which, in this scenario, is no different from losing a steady job. 

Depending on your schedule, set aside a few hours at least every other week and devote that time to finding new customers and clients. That way, one client’s disaster won’t necessarily mean disaster for you – and as an added bonus, you’ll likely diversify your skill set, too.

6. Keep your portfolio updated

Figuring out how to be your own boss means learning how to market yourself, and there is no better way to show off your skill set than by providing examples of work you’ve already completed. You need a record of what you provide, whether you’re a landscaper, a plumber or a freelance writer, and you need to be able to get this information to potential clients quickly. An easy-to-navigate website with specialty areas highlighted will usually suffice.

How often you update your website or portfolio depends on how busy you are and how much client turnover you have, but aim to look it over at least once every three months and continually add examples of new projects you’re especially proud of.

If you’re pushing through a large number of new projects, you may even want to update it once a month to make sure potential clients see your newest capabilities. Always post new blogs and articles on your site. When it comes to how to be your own boss , success is heavily influenced by what you publish .

If you don’t have strong design skills, work with a website designer who can do the work for you so your site is professional and effectively conveys your brand identity . Many of your prospects will look at your website before they ever contact you personally, so it needs to make a good impression.

7. Turn your vision into action

Whether you’re working independently as a freelancer or want to become the next Steve Jobs, creating a powerful vision is vital to staying energized to work toward your goals. Connect your vision back to your purpose in life: How will your new business inspire you to make your life a masterpiece? What do you want to achieve beyond learning how to become your own boss ? See the bigger picture: financial freedom . The ability to do what you want, when you want, as much as you want. A clear vision will give you strength to keep going when times get tough – and allow you to inspire others to follow you .

You’ll also use your vision to create your business map . This is different from a plan: A business plan is a definitive way to get from point A to point B. A business map is a holistic and flexible view of your business that will tell you what’s working, what’s not working and how you can adapt. At Business Mastery, you’ll learn the right questions to ask to create a business map and use it to propel you to success in any economy.

8. Put your clients first

Being your own boss means putting your clients ahead of yourself. Take pride in your product or service, and make sure it’s something that creates value for others . But don’t fall in love with it – because the more you love it, the less willing you will be to make changes.

You are ultimately answering to your clients; they’re the ones you are working for, and they’re the ones you need to keep happy. Once you realize your customers’ lives are at the heart of your business , you’ll understand that their needs come first. If they want changes in what you produce, you need to listen to them and implement these changes.

Being your own boss means you are on the hook for producing the work and keeping up with changes in your field. Are your nearest competitors doing something different and offering greater value to your clients? Committing to constant and strategic innovation is one of the keys when learning how to be your own boss . You better adjust your practices or even your most loyal clients will leave you for someone else.

9. Learn to control your emotions

Selecting the clients and the projects you find interesting is one of the advantages of being your own boss , but it comes at the cost of a regular paycheck. Depending on what you arrange with your clients, you may be paid every two weeks; it might be every month or at the successful end of every project. There will be times when you’re flooded with work and flush with cash and there will be other times when the gigs and the money dry up and you’re looking for just about anything to bring in some income.

You’ll have potential clients tear apart your work or decline to work with you at all, but you’ll also have those who sing your praises and make you feel on top of the world. When you commit to the adventure of how to become your own boss , you have to accept there will be days when you long for the security of the day job even if you are pursuing your passion .

A key to entrepreneurship is taking charge of your emotions . You’ll need strength to make it through these challenges; getting upset or anxious when these situations happen will only damage your ability to do your work. Instead of focusing on how concerned you are about client reactions, focus on getting your current assignment done to the best of your ability. It takes a calm, clear mindset to succeed at self-employment. Those who don’t have effective stress-management skills or get easily frazzled need not apply.

10. Get the support you need

You don’t need to tackle this portion of your life alone. Jay Abraham states that one of the best things you can do as your own CEO is to find a coach who won’t settle for less. Though we are raised not to ask for help and instead act like we know all the answers, the truth is that no one exists in a vacuum. It’s our responsibility to find the right people to help us succeed. If you’re ready to discover the advantages of being your own boss , get involved in Results Business Coaching and find a mentor who can help you through the process. 

Professional events are another way to find community. In addition to teaching you the real-life skills you need to be your own boss , Business Mastery will connect you with a group of like-minded professionals who could become a lifelong support system. You’ll hear stories of success and perseverance, get valuable advice and learn to crush your obstacles and celebrate your successes.

Ready to be your own boss?

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Being Your Own Boss Can Pay Off, but Not Always with Big Pay

For generations, American workers have dreamed of striking out on their own, starting their own business, being their own boss—and ideally making a lot of money in the process.

That sentiment appears to be alive and well today, amid an acute labor shortage that has given workers the market leverage to quit their jobs at record rates and try new posts and career paths. But self-employment, an option many workers are reportedly pursuing during the so-called Great Resignation , may not be as lucrative as it once was, according to a recent Harvard Business School working paper .

The working paper, called “The Transformation of Self Employment,” details a stark shift over the past 50 years in the composition and earnings of the independent workforce, says William R. Kerr, the D’Arbeloff Professor of Business Administration at Harvard Business School, who is one of the study’s authors.

While the number of jobs held by independent contractors has remained steady, fewer entrepreneurs are choosing to start ventures that require significant startup capital—and those are the same businesses that are typically rewarded with higher returns. In addition, "hometown" local entrepreneurship has declined during the past five decades, and the self-employed are unlikely to be the top earners in their communities.

“It’s gotten harder to make a substantial profit at those smaller-scale levels,” explains Kerr. “It’s hard to make the numbers work. Clearly, there are success stories within those areas, but there are fewer success stories today. At the macro level, the profit squeeze is just hard.”

The working paper was co-written by HBS doctoral student Innessa Colaiacovo; Margaret Dalton, an analyst at the Center for Economic Inclusion; and Sari Pekkala Kerr, an economist at Wellesley College. The research offers a cautionary tale for would-be entrepreneurs, identifying industries where the self-employed have both struggled and thrived.

High-capital startups have declined

Kerr says there’s clearly been a shift in the makeup of the self-employed since 1970 toward fields that require less startup capital, such as construction and child care. Industries that need more startup capital—such as farming, retail, trade, and hotels—have declined from 55 percent of self-employment in 1970 to 23 percent in the last decade.

Kerr and his colleagues analyzed possible explanations for the drop, including changes to wage options, the competitive landscape, and financial matters. The researchers ultimately concluded that smaller-scale operations within high-capital industries, such as small Main Street retail stores and independent medical practices, were earning less.

Meanwhile, self-employment incomes in both high and low capital industries are falling sharply compared with the wages that organizations pay workers, according to the researchers. Their data came from a number of sources, including US Census and American Community Survey data.

For example, in 1970, 11 percent of self-employed people in high startup capital industries were among the top 5 percent of earners that year, and more than 14 percent of self-employed people in low startup capital industries were in that wealthiest bracket. By 2018, those percentages of self-employed people who were top earners had declined to 9.7 percent and 6.8 percent, respectively, the study says.

Should people start their own businesses?

While Kerr says the data shouldn’t deter people from striking out on their own, someone considering opening a small business that requires high startup capital, such as a bed-and-breakfast, might need to weigh the risks. The fact is, it’s harder to make a significant profit at a lone B&B than it is at a motel chain, Kerr notes.

“People need to think about the scope of their self-employment level,” says Kerr.

But Kerr emphasized that the findings needn’t throw cold water on striving for self-employment in general. In fact, the lure of working independently is as strong as ever, with self-employment accounting for 9.3 percent of the US workforce in 2018, up from 7.8 percent in 1970, with lower capital industries, like personal services, construction, and child care, flourishing.

Besides, prior studies have shown that other factors motivate self-employed people more than salary. Their bottom lines are not entirely measured in dollars, Kerr says.

“It’s about being your own boss, spending more time with your family, having more flexibility and work-life balance,” Kerr says. “Those are really powerful drivers.”

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The Female Professional

How to Be Your Own Boss in Life

I was having a conversation with a boss friend of mine recently…and I call her a boss for several reasons: she’s a female physician , triathelete (has done half ironman AND full ironman), an avid biker, photographer, cook, and traveler. Literally, she’s done it all and shows no sign of stopping. So I was talking with her, and we got onto the topic of what it means to be your own boss at life, to go after what you want, achieve goals and then keep going.

First things first, whatever it is you want for yourself, you need to:

Define What it Means for You to Be Your Own Boss

We all interpret the phrase “be your own boss” differently. For some it means having good control over your workday, making your own schedule, or making passive income, or being self employed and running your own business; for others, it may simply allude to being independent and having full authority over your free time and the ability to make decisions on your own; for still others, it may mean having the freedom to pursue interests and dreams. For some of you, it may still mean something else.

Whatever it means to you to be your own boss, the first step is to recognize and define it for yourself so that you can put it into play in your own life .

I think there are some universal practices for maintaining your boss status, which is what follows.

Keep the Goal in Mind

Once you have a goal or vision for your future, never lose sight of where you want to end up. There will be plenty of obstacles, plenty of challenges and hardships. I think the best way to keep going is to remind yourself of the end result you’re after. There’s no fixed pathway to achieve your goals. A friend may do it differently than you, but the outcome may be the same. So just remember the goal and keep going.

There are several ways to achieve this including:

• Create a vision board and look at it daily; this can be a physical board you have in your home or one you create on social media (for instance, on Pinterest) where you can continuously add new ideas to it and sources of inspiration as you find them.
• Journaling : record your progress so that you can see how far you’ve come and also keep track of what’s left to do
• Tell people you trust : they’ll serve as reminders and sources of strength if you falter or veer off course
• Make a list associated with each goal and discipline yourself to accomplish one thing each day
• Join interest groups that have similar goals that you are pursuing. Surrounding yourself with like-minded people can go a long way towards helping you keep your eye on the endgame.

On that same note, you must…

Love the Process

As I mentioned, there’s no one way to achieve your dreams. Everyone has a different path to take. It’s important to not compare your journey to others, and also to embrace whatever process you do adopt for yourself. Your process is uniquely yours ; so own it and do your best to learn as much as you possibly can along the way.

In addition, there will be things you have to do that you are not good at, you will have to do what you hate and you will sometimes be frustrated to no end. When faced with these obstacles it’s easy to start doubting your journey and think about quitting or changing. However, you must love this part of the process too because it is making you a stronger person and making you a better version of you.

Be Open to New Experiences and New People

No matter how much you know, or think you know, or how comfortable you are with your social situation, stay open to meeting new people and trying new experiences. There is always more to learn, see and do. There is always someone out there who can teach you something, maybe even something about yourself that you hadn’t realized before.

Intentionally staying open will help you to continue to grow as a person and as a professional.

Another way to put it is:

Stay Uncomfortable

Getting out of your comfort zone is the best way to grow, both personally and professionally. If you don’t challenge yourself, you’ll never know what you’re truly capable of. Some examples of how to start:

• Maybe you want to be an entrepreneur and have some great business ideas? Start a business plan. Is it a home-based business or an online business? Do your research and see what is doable.
• Or a side hustle? After working your full time job, do some research on this new venture.
• Or you don’t make much money and know that your hard work deserves a raise? Work on a spiel to go ask for one.
• Afraid of public speaking? Take classes and learn some techniques to help you through it.
• Perhaps you want to venture into real estate so you can set yourself up to generate passive income? Look into the best markets and learn what it takes to invest.

Sometimes just doing research and educating yourself on an idea can put you outside your comfort zone, because it means you are seriously considering it. You don’t need to jump at every idea going through your head, nor do you need to know exactly all the steps to take, but you should take one idea and give it a shot. Push yourself into an area that you are uncomfortable in; maybe you’ll succeed, maybe you’ll fail, but either way, you’ll learn a lot and it’ll make it easier for you to try again.

This is a tool that is underrated and underused in my opinion. Definitely, as physicians, we are never taught how to network or the importance of it. When I reached business school, however, that’s all we ever talked about it. Networking is a skill that requires attention and practice and can pay off in the biggest ways. I got my current job in southern California by simply networking.

Hand in hand with staying open to meeting new people and to new experiences , networking can show you options that may not have known were even available to you. The people you meet can open doors for you and help you achieve your goals!

Work on Yourself Daily

You are a work in progress; we all are. Aside from professional advancements, make sure to pay attention to yourself as well. Take care of you, take breaks, get sleep, learn ways to de-stress, read books that bring you joy and/or teach you something, and definitely make time to travel .

Add in anything here that I haven’t mentioned that you feel is important to you. Little increments of work every day make a huge difference over time.

Add Things to Your Life That Improve it and Delete Anything That Doesn’t Help You Advance

Whether it’s people, habits, or superfluous tasks, be intentional of how you spend your time and energy. Being busy is not the same as being productive.

Something that is more difficult to do, is letting go of people that drag you down. You may not realize it, but sometimes we are unable to move forward because we subconsciously are hanging on to people in our lives. We do this out of sentiment, fear, obligation or guilt; we know that if we were to take a step in a certain direction, we would lose those individuals from our lives. However, is that a bad thing? Is losing a friend that clearly doesn’t support you or your growth really a loss?

Anytime you focus on change or growth, you will alienate certain individuals. You have to weigh their importance in your life with how important your own progress is to you.

To be your own boss you have to take control and recognize that your life is yours, and should not be at the mercy of others.

Above All: Be Yourself

There’s only one of you; so be the best boss version of yourself you can be .

To be your own boss isn’t just about running a business, making a career change or making money. It’s about making decisions for your own life, taking charge of how you spend your time and ensuring that you continue to work and better yourself so that you can reach your full potential.

So, start today. Identify who you want to be, where you want to end up and make sure that everything you do and how you live your life is pushing you in the direction that you want to go.

Anything you’d add to this list? Share below!

(Featured and pinnable image courtesy of unsplash )

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3) E-commerce: Online retail success

The e-commerce industry has been rising rapidly in the last few years ; it’s a very easy platform for aspiring entrepreneurs to create online stores and sell products or services.

Some of the best-known multinational e-commerce businesses include Amazon, Shopify and AliExpress – businesses which were not always the high-level profit-turners we know them as today. E-commerce business can be a savvy and pragmatic way into self-employment as it can run alongside study or other employed work; it can be built up while you work in another job.

4) Creative arts: From passion to profit

Furthermore, careers in the creative arts (such as writing, art, music and photography) often start off as freelance work, and can be developed into profitable ventures.

This could include writing poetry and submitting your work to paid competitions, writing a novel and sending it to agents, or painting and exhibiting your work at local gallery spaces.

Of course, it’s also perfectly okay to enjoy being creative without making it into a profit turner, but it is possible to have it as a business outlet all the same.

5) Online content creation: The power of influencers

One avenue we’re sure you’ll all be familiar with is the world of online content creation, which predominantly exists on social media, but also includes blogging and vlogging.

This is arguably one of the most accessible ways of allowing individuals to be their own bosses, professional or otherwise. Many influencers have turned, and continue to turn, their online presence into a full-time career, and examples of this include YouTubers, live-streamers, and lifestyle influencers.

6) Education and tutoring: Shaping the future

Another steadily growing field of freelancing is education and tutoring. Super-curricular and online tuition is in very high in demand, and many educators today can and do start their own tutoring centres, in-person or online courses , or educational platforms.

Furthermore, tutoring is something students can readily start doing alongside their studies, and this might have a positive impact on their own understanding of academic content whilst bolstering their finances and CV with valuable work experience .

How Can High School Students Work Towards Being Their Own Boss?

For students who’d like to seek out self-employment, it is very important to cultivate an entrepreneurial mindset early on and take on traits such as creativity, resilience, problem-solving and risk-taking. There are group opportunities for the development of these skills, such as participating in entrepreneurship clubs or competitions.

Moreover, students can explore part-time ventures or “side hustles” that align with their interests and talents. Even if these ventures are relatively modest and don’t pay much, they’re extremely valuable for gaining practical experience and learning from the professional process.

Seeking mentorship and guidance, and generally building a network with experienced entrepreneurs and professionals, goes a long way beyond simple guidance and advice. For any self-employed person, making connections with local business associations through individuals or networking events can have unprecedented benefits and opportunities.

Lastly, building a strong educational foundation for yourself matters immensely. The role of education is important in entrepreneurship, and students should consider relevant courses or degrees that can provide valuable knowledge and skills based on their employment of interest.

There’s a very diverse set of careers that empower individuals to be their own bosses. Students who’d like to become self-employed have ample opportunities as well as the support available to take the steps toward entrepreneurial independence.

Ali is currently studying a BA in English Language and Literature at the University of Oxford, and is particularly interested in Old English and Renaissance world literature. He has experience in school journalism, and enjoys writing articles and doing research.

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Being Your Own Boss: Pros And Cons

While becoming your own boss can be an intimidating path, it provides numerous benefits that can accelerate your career and enable you to take control of your life. Programs like Beta Bowl’s Entrepreneurship Program prepare you to tackle the challenges of being your own boss head-on and succeed in your endeavors. In this blog, we’ll explore some of the upsides and downsides of exploring entrepreneurship and becoming your own boss.

Related: Top 5 Characteristics of an Entrepreneurial Spirit

Pros of Being Your Own Boss

Given how popular being one’s own boss is nowadays, it’s evident that there are many pros to such a career path. In this section, we’ll discuss the upside of working for yourself, rather than a larger corporation.

You make the decisions

The most common reason for someone to want to become their own boss is the ability to make their own decisions. If you control your work through entrepreneurship or a flexible career path like freelancing , you’re in complete control of your career. That means you make all company decisions, from what direction to work into what jobs to accept. While this can be intimidating, it allows you to pursue your passion and exercise your decision-making skills and ultimately makes you a more effective worker.

Setting your own hours

A highly appreciated part of being your own boss is the ability to choose when you work. This can be important for health or productivity reasons – for those who prefer working at night, an independently owned company will allow you to work when you see fit. This can help you with logistical planning, such as managing work alongside raising a child or other personal duties. Most of all, setting your own hours affords you a new level of freedom to work whenever you feel the most motivated – you can schedule around other pursuits such that you work only when it’s most efficient for you.

No one can fire you

A common worry when working for a larger company is that you can always be fired. While this may temporarily keep your productivity up, it guarantees that you will always be on edge and worry about producing less-than-excellent work. However, a stressful environment like that is counterproductive to efficiency and innovation. If you work for yourself, you can always be content and motivated with the knowledge that there is no one there to fire you. This also means that you can choose your own working style, hours, and preferences without the fear of upsetting a manager for changing projects or ideas.

If you are looking for help in your entrepreneurial endeavours, Book A Call with Beta-Bowl today.

There is No Limit to Your Creativity

When working for a company, you may feel constrained by your manager’s limits set on you. Projects are often given with strict deadlines and requirements, forcing you to work within a tightly confined set of instructions. As an independent worker, you’re the one that sets these rules. Even if you are creating a consumer-facing product with individual specifications, it’s up to you to decide how to achieve this desired result and what approach should be used. 

You Can Come Up with Your Own Culture/Routine at Your Workplace

A common complaint of working for a large company is a poor culture fit between the employee and employer. Given how intangible workplace culture is, many employees are unsatisfied after joining a company, even if they enjoy the work or appreciate the company itself. As a result, picking your own workplace culture is an understated yet highly important part of being your own boss. As a decider of corporate culture, you decide the mood and the tempo of work and what you focus on, and how you interact with others.

Related: How to Increase Your Creativity in High School

Cons of Being Your Own Boss 

However, being your own boss isn’t for everyone. Some certain risks and worries are inherent to such a career, and this lifestyle may be more terrifying than enjoyable. In this section, we’ll explore several of the downsides of becoming your own boss.

Income Isn’t Guaranteed

Financial anxiety is one of the chief concerns associated with becoming your own boss. Because you manage your income source, generating money is purely dependent on how much time and effort you put into your new job. If you are a motivated hard worker, this won’t be a worry in the long run. However, with income not guaranteed and your salary volatile, there can be a lot of anxiety along the way.

Your customers or clients are your boss

Calling yourself your own boss is somewhat of a misnomer – when you’re getting money from an external source, you always work for someone . This can take the form of a direct customer, in which you must tailor your product to fit their needs. Alternatively, if your product is business-facing or a business invests in you, that means meeting a client’s demands. Either way, even independent workers are often under the discretion of some ruling body.

Related: Entrepreneurial Mindset: How to Think Like an Entrepreneur

Everything depends on you

One of the most terrifying things about being your own boss is that there is no boss above you to make sure you are doing everything right or taking the correct path. Rather, every decision you make is your own. As a result, while you are responsible for any successes, you’re equally responsible for failure. This can be intimidating, but it is important to remember that being (strategically) risky works to your benefit and will benefit you in the long run.

You Do Almost All the Work in the Beginning

When you first become your own boss, there’s typically a large overhead. If you’re a freelancer, this means gaining coverage and finding clients (typically of any project when you desperately need work). If you’re a business owner, this can mean setting up the entire product, and sales funnel to manage its sales. Either way, there can be a lot of initial work to set up your business before you’re able to take a more hands-off approach.

You spend your own money

Spending your own money while being your own boss can be a blessing and a curse. On the plus side, since the money is your own and you owe no one for spending it, you can take risks without the fear of hurting others. However, any risks you take that don’t pay off will harm you directly. While this may seem scary at first, spending your own money requires you to be strategic, so you do more due diligence before taking risks. As a result, using personal assets will keep you in line and focused on your business.

Searching for that extra push to advance and apply your entrepreneurial skills? Enroll with Beta Bowl for professional hands-on development!

Everyone has the capacity to be their own boss, but you should ensure to evaluate the pros and cons of doing so before you go through with such a decision. While becoming your own boss can seem scary at first, you’ll soon find there are many reasons that such a decision can benefit your professional and personal life. Nonetheless, we strongly recommend you consider every facet of such a decision and how it can potentially impact you.

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What are the benefits of self-employment vs employment?

The main benefits of self-employment are the greater control and flexibility over your working schedule you will have in comparison to traditional employment. You may also feel a greater sense of satisfaction and fulfilment in your job knowing you are working for your own business.

Top 10 Benefits of Being Your Own Boss in Comparison to Employment

Although most people with “regular” jobs are curious about what it would be like to be their own boss, any reasonable person would have to admit that self-employment is likely to come with significant challenges. Not everyone has “what it takes” to launch and operate successful business, but if you feel that you are creative, persistent, and resourceful enough to make a comfortable living as the director of your own company, then consider the following 10 advantages that being your own boss could offer in comparison to employment:

1. Greater Control

As a self-employed business owner  you'll have the freedom to make executive decisions that will affect the future of not only your company but also your family and career in the long-term. As an employee  you can only exercise control within the boundaries of your job description.

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2. Flexible Work Hours

One of the most appealing types of control that an entrepreneur has is the ability to choose when they want to work. With that said, working inconsistent hours and failing to commit to a set work schedule is a sure way to hinder the success of your business. Be realistic and don't give yourself too many vacations or progress will certainly suffer. Keep in mind that balancing work and life is an essential aspect of succeeding as a business owner.

3. Open-Ended Career Progression

As an employee you have limited opportunities to get promoted to more lucrative positions. Pay raises are typically few and far in between, and when they do come they are relatively nominal. On the other hand, as a self-employed individual your income potential is limited only by your own willpower and proficiency. You can also use the accolades you've obtained as the manager/CEO of your own company to secure similar job positions for larger companies in the future if that is the path you choose to pursue.

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4. Greater Sense of Satisfaction

When you do a good job as an employee you may be rewarded with something like an “employee of the month” certificate, a small pay raise that only slightly increases your hourly wage, or maybe even just a simple “pat on the back” acknowledgement given by superiors during a company meeting. On the other hand, when you consistently perform well as a self-employed business owner your entire company reaps the benefits, your income gradually increases, and as a result you feel a much greater sense of satisfaction and fulfilment.

5. Diverse Learning Experience

During your journey as a budding businessman you'll learn invaluable lessons about accounting, micro-management, consumer psychology, increasing productivity, conducting professional correspondence, and countless other topics related to business management. This knowledge will prove to be useful regardless of whether you choose to start working for another company again or take the more entrepreneurial route of founding additional startups.

6. Forming Positive Habits and Attributes

Every self-employed person has to develop certain habits and tendencies if they want to generate enough income to keep up with personal and corporate financial obligations. As your own boss you are the only person standing in the way of your own success. People who own and operate businesses for long periods of time tend to develop attributes like punctuality, diplomacy, reliability, diligence, and frugality. As an employee of another company you simply don't have the burden of responsibility that a self-employed person does, so you're never pushed to adopt such traits.

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7. Enhanced Business Networking

Unless you are employed in an advertising, marketing, or public relations position for another company, chances are you'll do more networking as the owner of your own business. To effectively promote and operate your company you'll probably have to communicate and conduct transactions with people in related industries on a regular basis. Therefore, you'll likely have more chances to meet other business owners and managers, so available networking opportunities become more abundant.

8. Higher Motivation and Morale

When you show up for work everyday and perform designated tasks in exchange for a preset salary or wage things can become a bit mundane, whereas the degree of spontaneity involved in operating a  business independently tends to allow for much more excitement and enthusiasm. They also tend to be more confident and have a higher overall morale due to their financial independence.

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9. Employment Protection

Whether you sell product or services, one fact remains a constant truth – as long as your company stays in business, as the owner/director you'll always have a job. The same can't be said for an employee, who may or may not be working for their current employer from one year to the next. Even if your company starts to experience hardships and income decreases, as a self-employ individual you'll still have the ability to initiate a recovery and take matters into your own hands.

10. The Ability to Retire Sooner

Last but certainly not least, self-employment retirement plans let you save more towards your retirement because you can make higher annual contributions towards your solo 401(k) account than you could with a retirement account provided by an employer (which would have more restrictive maximum contribution limits). In addition to letting you contribute more towards your retirement account each year, self-employment also gives you more opportunities to generate the type of money needed to fund an early retirement.

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What’s the Quickest Path to World War III?

In “The Return of Great Powers” and “Up in Arms,” Jim Sciutto and Adam E. Casey consider modern-day superpower conflict through the lens of the past.

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By Scott Anderson

Scott Anderson’s most recent book is “The Quiet Americans: Four CIA Spies at the Dawn of the Cold War — A Tragedy in Three Acts.”

THE RETURN OF GREAT POWERS: Russia, China, and the Next World War, by Jim Sciutto

UP IN ARMS: How Military Aid Stabilizes — and Destabilizes — Foreign Autocrats, by Adam E. Casey

Every few months in the years that Donald J. Trump was president, Iran made a show of its ballistic missiles — the powerful rockets that can deliver nuclear warheads from one nation to another — and set off a small panic in Washington. The tests went like this: A missile flew up from one part of Iran, traveled through the country’s airspace and, ideally, blew up harmlessly in another part of Iran, hundreds of miles away.

The former White House political adviser John Kelly remembers that, on one such occasion, after intelligence of an impending missile launch came in, Trump said he wanted to shoot the weapon down. “Well, sir, that’s an act of war,” Kelly recalls telling him. “You really need to go over to Congress and get at least an authorization.”

“They’ll never go along with it,” Trump apparently replied.

“Well, I know,” Kelly said. “But that’s our system.”

This anecdote and many other alarming scenes appear in Jim Sciutto’s “The Return of Great Powers,” an absorbing account of 21st-century brinkmanship. Sciutto has interviewed several of Trump’s former advisers, including Kelly, who explains that he managed to talk his old boss out of some of his worst ideas only by suggesting they would hurt his standing in public opinion. “Americans, generally speaking by polling, think that we should be involved in the world,” he recalls telling Trump when the president threatened to pull the United States out of NATO .

The former national security adviser John Bolton is even more blunt about this episode. “Honest to God,” Bolton says, “it was frightening because we didn’t know what he was going to do up until the last minute.”

That such political figures would speak so candidly can be partly credited to Sciutto’s standing as CNN’s chief national security analyst and his earlier stint with the State Department under Barack Obama. He’s the kind of well-connected reporter who, as we learn in this book, gets a call at 3 a.m., in February 2022, from an unnamed Congress member to warn him that a war in Ukraine is imminent.

It also reflects the unbridled horror that insiders like Kelly and Bolton feel at the prospect of a second Trump administration taking charge amid a perilous superpower chess game. “The Return of Great Powers” argues that we are living through a Cold War redux that once again pits the United States against Russia and China. The battle is being waged on every imaginable front, from undersea communication cables to satellites in outer space and the growing frontiers of artificial intelligence .

Sciutto begins with cinematic jumps between an eclectic assortment of personalities — American generals and congressional leaders, Finnish diplomats and Taiwanese naval captains — in the days and hours leading up to the Russian invasion of Ukraine. In later sections, the white-knuckle tension he experiences as Russian warplanes close in on a NATO fleet conducting exercises near the Baltic Sea is eerily echoed by Chinese jets operating in the Taiwan Strait.

One great difference between this cold war and the last, Sciutto contends, is that the guardrails erected to prevent superpower rivalries from sliding into catastrophe have been steadily dismantled. Over the past quarter-century, both the United States and Russia have abandoned one arms control treaty after another and lines of communication between all three powers have been purposely reduced. As one unnamed State Department official tells Sciutto, when a mysterious Chinese balloon drifted across North America last fall, the Chinese military “ refused to pick up the phone .”

Add to this precarity those proxy mischief-makers — North Korea, Iran, Turkey and Saudi Arabia, to name a few — that might see advantage in provoking a superpower showdown. It’s enough to send those with a front-row view into the old basement bomb shelter.

Or to cause them to share their fears with a reputable journalist. Virtually all of Sciutto’s interlocutors are aligned: A defeated Ukraine will embolden Russia’s president, Vladimir V. Putin, to attack one of the other countries, perhaps Estonia or Moldova, that have already caught his covetous eye. It might also encourage an impatient Xi Jinping of China to force a military solution to “ the Taiwan question ,” an event that some observers see as a precursor to global war .

Having identified the peril, Sciutto’s panelists also agree on the solutions: unwavering commitment to the defense of Ukraine; greater integration of NATO forces; much closer cooperation between the European and Asian blocs of democratic nations. Ironically, many of these recommendations are now being enacted thanks to the Russian invasion and Chinese encroachments — long-neutral Sweden and Finland have joined NATO , and East Asian nations have strengthened their mutual defense pacts .

But that doesn’t mean there isn’t cause for concern. Trump, once again his party’s presumptive presidential nominee, has fought against U.S. military aid to Ukraine and urged Russia “ to do whatever the hell ” it wants to NATO members who fail to meet their financial obligations. The litany of international dangers Sciutto describes, set alongside the recollections of some of Trump’s closest former advisers, is the stuff of unholy nightmares.

For all its strengths, “The Return of Great Powers” sometimes displays a peculiar awkwardness in conveying others’ views. Sciutto can let his subjects meander around points that are not particularly interesting or original — or, at times, even comprehensible. On the matter of standing up to Russia, for example, he quotes a senior Western diplomat as stating: “The idea that we can’t do this is completely false, but the problem is also economically and physically we have that capability. But then, do we have it politically? It’s going to be a different game. But am I concerned? Yes.”

I suppose I’d be concerned, too, if only I could grasp what he’s talking about. Still, these are mere quibbles when set against the import of Sciutto’s book, one that should be read by every legislator or presidential nominee sufficiently deluded to think that returning America to its isolationist past or making chummy with Putin is a viable option in today’s world.

The ideal way forward for a great power like the United States has always been fraught, and looking back at the mistakes and successes of the Cold War is often instructive, but not always. Adam E. Casey’s “Up in Arms” is well written and clearly the product of prodigious research; it also shows how Cold War comparisons can sometimes go too far.

Casey, a former academic who is now a national security analyst for a curiously unspecified branch of the U.S. government, sets out to re-examine the accepted wisdom that U.S. aid to totalitarian regimes served to maintain and prolong those dictatorships during the latter half of the 20th century. In rebutting this thesis, he sets out some statistics that are initially eye-catching. According to his examination of hundreds of Cold War authoritarian regimes, Soviet-supported rulers survived, on average, twice as long as American-supported ones. Most startling, in any given year, U.S.-backed dictators were about seven times more likely to fall than their Soviet counterparts.

As he points out, though, the Soviets exported their own military model to client states, which meant an armed forces thoroughly infiltrated by Communist Party commissars, and counterintelligence officers whose primary focus was keeping watch over the ideological steadfastness of their own rank and file. The result was an army wholly subordinate to the party and the state, drastically reducing the odds of a military coup.

By contrast, the U.S.-military model called for building out an anti-communist army independent of whatever tyrant happened to be in power at the time, often leading to the creation of a parallel power base that might ultimately challenge said tyrant. The American method was less durable, because it often yielded a round robin of military coups led by anti-communist officers against other anti-communist officers.

How did these different approaches alter the global chessboard? Remarkably, hardly at all. While Casey astutely points out that the American model was a perfect breeding ground for corruption, human rights abuses and governmental instability, he also notes that over the entire half-century span of the Cold War, only one military coup — Laos in 1960 — led to an actual ideological realignment of a U.S.-backed regime, and then only briefly. This is why, Casey explains, American cold warriors weren’t inclined to change course, despite their awareness of the chaos they had wrought.

Casey gamely suggests his findings might have currency as the planet enters another period of superpower jockeying, but it is hard to see precisely how this military-proxy dynamic of yore replicates itself. China has never shown much interest in extending its martial reach to countries beyond Asia, and Russian military tutelage is surely trading at a deep discount after its dismal Ukrainian outing.

As for the United States, while displaying little reservation about cozying up to despots when convenient — witness some of the grotesqueries it has climbed into bed with for the so-called “war on terror” — it’s hard to imagine any eagerness to go back to the days of army-building in the wake of America’s Iraq and Afghanistan war hangovers.

That being said, the last Cold War went on for decades. In 10 or 20 years, the hangovers could fade. China’s economic ties to countries like Uganda and Ethiopia , Russia’s support of Cuba and Venezuela and American entanglements in Southeast Asia and the Middle East all have the potential to turn from cold to warm, or from warm to boiling hot. Giving up on democracy is all the rage these days. The leaders of the great powers could start eyeing Cold War-inspired playbooks like Casey’s, with dire results for everyone caught in between.

THE RETURN OF GREAT POWERS : Russia, China, and the Next World War | By Jim Sciutto | Dutton | 353 pp. | $30

UP IN ARMS : How Military Aid Stabilizes — and Destabilizes — Foreign Autocrats | By Adam E. Casey | Basic Books | 323 pp. | $32

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