Pros and Cons of Self-Employment

For some individuals, self-employment can be a viable work option. It can give you more control over your work environment and time, be closely related to your talents and skills, and provide financial and personal rewards. On the other hand, small business ventures require personal discipline and excellent time management skills, tend to have a high failure rate, require substantial start-up funds, and receive more scrutiny from private or government agencies than do regular businesses. In traditional vocational rehabilitation models, self-employment plans are usually the last option and can require much effort and sacrifice on your part.

First-Step to Self-Employment: The Business Plan

You must first develop a business plan, which includes a needs assessment to determine if a market exists for your product or service, as well as evidence that you have the necessary funding to support the business. Here are some resources that can help with this process:

• The Senior Corp of Retired Executives (SCORE), a volunteer association of working and retired business professionals, can offer expertise to help you develop a business plan;
• If you are a college student, ask if your university’s business department can help you develop a business plan.

While programs such as the Social Security Administration’s Plan to Achieve Self-Support (PASS) can sometimes provide equipment or initial inventory, you are responsible for monthly rent and other business costs. In addition, you must establish sound accounting practices and other financial reporting mechanisms.

Volunteer to Learn the Business

Consider working as a volunteer in a related business before going it alone. This approach allows you to learn more about the type of business you’re considering and can help you determine if self-employment is a realistic option. Experience in providing a product or service is also helpful in gaining the confidence of investors.

The United States Small Business Administration provides an online tutorial that provides information and resources to plan, start, and manage a business. Local adult education classes and college extension programs can also help you develop a self-employment and small business plan.