Full disclaimer: I am a freelancer who also blogs independently. I used to work for a corporation but then I quit in 2008, about a year before the recession hit.
Since the recession, people have been getting laid off from their jobs and starting blogs online in hopes of making money, or starting their own small business.
This is something I fully support. I think it’s wonderful that there’s an unexpected silver lining in this dark recession cloud for many entrepreneurs out there.
But I’m starting to feel slightly put off by the wave of rah-rah entrepreneurship that has been sweeping through the internet as of late.
Wait!
Before you start pelting apples and writing angry comments about how hypocritical I am being a freelancer myself, let me explain.
I feel as though starting your own business is being held up as the magic answer to all of your life’s problems and it isn’t.
Have debt?
No problem. Become an entrepreneur and make loads of cash to clear it.
Hate your job & feel like you aren’t in control?
No problem. Quit and start your own blog to roll in the advertising dough each year.
Hate working for THE MAN as a corporate cog?
You should. You should quit your corporate job, open a surfing school on some island, get dreads and live on a beach drinking coconut juice and spearing your own fish.
MONEY TROUBLES
Becoming your own boss means all the money goes into your pocket, but it also means you have to really take yourself out of your comfort zone.
Your money troubles will not go away automatically if you become a freelancer. Your income does not make as much of a difference as you think.
In the short-term, yes.
In the long-term, old habits die hard.
If you are an over-spender and under-saver, you will stay the same regardless of how much you earn unless you change.
You could earn $30,000 at work and $300,000 as a self-employed business owner, but if you don’t save a single dime of it you are basically in the same position as you were in before. Just with nicer toys.
You might only achieve in racking up a higher debt load because you feel like you earn so much more.
The risks as a freelancer are also greater:
- No steady paycheque
- Have to save a huge amount of money as your emergency fund (3 years not 3 months)
- Need much more discipline to handle your money (and taxes!!)
To become your own boss, you need to be even MORE in control of your expenses, savings and general money management because everything is so uncertain.
If you think money will roll in year after year without stopping, you will be sorely disappointed when you quit.
HATING YOUR JOB & WANTING TO BE “IN CONTROL” OF YOUR LIFE
Why can’t you gain control of your own life now? Why do you need to be self-employed?
What’s your definition of “control”?
Do you hate that you don’t know where your money goes? Then get a budget and start tracking your expenses.
Do you hate your job and your boss? Figure out what it is you hate and make the appropriate (career?) changes.
Do you feel useless and unwanted at your job? Figure out why you feel like that, and come up with a plan to change it.
These are all things you can do now.
There is really no excuse to NOT feel in control and independent in your life, and if you don’t.. then you need to figure out what is holding you back and why you feel that way.
But one thing I do know, is that being your own boss won’t change, it might even make it worse because you’re all alone.
If at the end, you realize that you REALLY love your job and the industry but you just hate working for a company, then explore the options of becoming a freelancer. <—- This? This was me and the reason why I wanted to become a freelancer.
HATE WORKING FOR THE MAN AS A CORPORATE COG?
I don’t really believe in “The Man”. Who’s to say that one day you cannot be “The (Wo)Man” who has other so-called ‘cogs’ working for you? You only feel like a cog if it isn’t the right fit and if you let yourself feel like one.
Quitting your job and starting your own blogging business or cupcake shoppe to fight consumerism and spending by giving everyone a big EFF YOU is all very sexy, but there are other options than to become your own boss.
If you hate being a “cog”, you can move to a different company, country, industry, city, department, role or position. Then you might actually feel like you’re doing something interesting and not feel like a “cog” any longer.
If you want to consume less…. you can just spend less and consume less in your daily life without becoming your own boss.
Shocking, I know!
You do not need to give up your car, go off the grid and live in the jungle with nothing but your thoughts and a laptop to blog.
You can make all of those changes now in your life.
Case in point: I had to talk a sibling down from quitting recently, because he felt like a cog. He wanted to quit, become a freelancer like us and never have to worry about all of this corporate crap.
It wasn’t until we worked through (4 hours worth) of soul and career searching that he finally realized that he DIDN’T want to become a freelancer, and quite frankly he only felt like a cog in that company because they treated him like a cog.
He felt like he was out of options and becoming a freelancer was the only way.
He actually loved his job and he liked working for a company in a very structured environment.
He gained a different perspective and is currently searching for a new job in a company that will appreciate his skills and abilities rather than treating him like crap.
The example I have for consumerism is myself. I wanted to consume less, and I gradually started to do so. I’m not saying that I don’t consume anything at all, and I am ALWAYS good and as green as a leaf… but I’m better than I was 3 years ago.
I’m comparing myself to myself, not to others.
SUMMARY
I guess what I’m trying to say is take a grain of salt with everything you read and hear.
I don’t want anyone to ever think that becoming a freelancer the way I did is the answer to all of your troubles.
I was told in business school that 90% of businesses fail, which means that for every 1 success story, there are 9 who didn’t make it.
Being on your own takes a lot out of you — the amount of work to set up your business, organize your business, do your books and taxes, handle negotiations and to be rejected at almost every turn.
You may also tend to start working longer hours than you ever did as an employee (although people tell me that it never felt like work when 60 hours flew by). (Full disclaimer: I work less as a freelancer than I did before I quit, and I LOVE overtime.)
The monetary rewards might also be slim at the beginning, and might end up never taking off the way you’ve hoped or that you’ve read about.
There are also no benefits or vacation time built into the job.
These are all things that are left out of these rah-rah discussions about becoming your own boss, because you cannot rely on other peoples’ histories to be what will happen to you too. It just may not work for you.
Sorry to be a total Debbie Downer, but I guess I just wanted to be the one small dissenting, cautious voice in the sea of excited cheers of people quitting to be their own bosses or living on coconut juice off the grid.
I just don’t want anyone to read that the only solution to fight consumerism or to get rid of your money woes is to become your own boss, because you can make those changes now.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
Thanks for writing this, FB. I really got that not-so-subtle message that if you don't quit you day job, and write a blog about doing what you love – then you are a working zombie and can't think for yourself.
I started working full time 2 years ago, and some days my job is more interesting than others. I am definitely not in a position where I can take the plunge to start my own business, nor do I think that I want to. Right now, I just want to keep learning and figure out where I want to be heading.
Any time!!
I absolutely do not agree with that statement that if you don\’t quit what you do working for \”The Man\” or you stay in the corporate world then you are just a pawn, a tool or a cog in the machine of consumerism.
I think it\’s a load of crap. So is working for yourself when it doesn\’t make sense. I really think that everyone should make their own decisions about what they want their life to be, and to try and be the best person in that life they\’ve chosen.
For me, it doesn\’t include living on a beach and blogging, or writing an e-book and trying to sell it while sipping margaritas (virgin of course, as I don\’t drink).
I totally applaud you and others who stay in what they want to do, if not, how would companies run to provide goods and services for us in our lives?
I also know that a lot of millionaires \”next door\” are business owners, but that doesn\’t mean that they\’re bloggers or people who couchsurf and chill out on the beach in low cost countries. A lot of them are also auctioneers, but if you only go for a career just because of the money and wealth building potential, you are in for a world of depressing hurt.
I sometimes wonder if some people think they are capable of being more independent than they really are. I've never started my own business or anything, but I'd imagine it takes a lot of independence.
I generally consider myself to be a pretty independent person, and I'm capable of managing multiple projects at once. But I've found lately that if I don't have to report to someone ever, I don't get as much done- I don't need someone to hold my hand and look at my progress every day, but I need a real deadline. I wonder if I tried to do something on my own, would I be able to stick to deadlines I set myself?
I think it takes a certain type of person (and a certain skill set, as mentioned by other commenters) to succeed, and it shouldn't be seen as a bad thing if you don't fit that bill!
It depends on what kind of freelance work you do. I\’m project-based, so I always have deadlines and things to \’meet\’. It\’s never just me on my butt, chilling out at home watching TV while typing. (I WISH!)
I feel that everybody is independent to take his own decisions, it is just that sometimes we all get carried away with the mob mentality. If you listen to everyone and do what you like to do, you are your boss in the real sense of the term.
Fred from- Settle Debt
Only thing that I don't like is how some bloggers act like you're an idiot if you choose to stay at a corporation. For a lot of people it makes sense to work at a corporation, and I hate that phrase "corporate drone," and I hate it when they say "you're a corporate drone for working at the company,etc." There are companies out there that take the time to make employees happy especially professional employees.
There are all these blogs about independent location lifestyles, about how to leave your corporation. The problem is that a lot of businesses can take time to develop, you need time to learn knowledge and expertise, its not something that can be thrown in 24 hours and you have a successful side business. Don't get me wrong, I like the idea of independent location lifestyles, and freelancing and all that good stuff.
But I don't like the idea of "oh we should all just up and quit our corporation and pursue independent location lifestyles." Its not right for everybody, I like the social aspect of working at a corporation.
I bought into the "do what you looooove" too. Problem was, I loved a lot of things and it takes a HUGE amount of self-discipline (especially to work from home in your pj's), a pretty thick skin and a large range of capabilities to start off working by yourself. Because you'll be the marketing person, the accounting person, the file person, the bill collector person, etc. etc. all in one. Most people don't have that range of skill sets. And – quite frankly – most don't want to work hard enough or simply aren't smart enough to do it.
As I always say, there's nothing simpler than collecting a paycheck every 2 weeks.
This is just an observation – and I don't have any data to back it up – but it seems to me that many of the people pimping working for yourself nowadays don't have a whole ton of work experience to back them up. I believe that's why many of them get on the minimalism bandwagon to begin with – because they make squat. (Not you FB!)
And if you do want to get work in your field as a consultant, the best way to do it is by networking – bar none. And who do people hire as contractors / consultants? People they've worked with in the past that they know are good – AND that had a really good attitude when they worked with them before. Many people (not all) that are pining to work for themselves don't have that good attitude. But once you get that living fund set up to get through dry spells and keep a good attitude, you're like gold.
Coming from a long line of entrepreneurs, I do believe in the "Millionaire Next Door" concept that many, many millionaires are self-employed or own a business. There are many examples in the book of the right business to get into. IIRC, they're also things like waste removal services – not quite as sexy as being "paid to exist."
Years ago, my (wealthy) uncle told us "you'll never get rich with these" (gesturing to his hands). I believe that to be true. But our world has changed, and it's a good time for the era of the independent knowledge worker because they get paid for what's between their ears more than anything.
I agree! Entrepreneurship is not for everyone! It's way more work than just being a cog.
I'm working on my own business plan, but not for any of the reasons you stated. My friends and family can verify that this has been a long time coming… Hopefully I can be in the 10% that actually make it.
I really do think this has all been hyped up far too much to be healthy for the majority. Opening a business is the exception, not the rule as all these self-help gurus try to sell to you.
Well, I have been running my business for the last years. When I left my big corp job, three years ago, joined to a mid size consulting company. There I learnt, how to sell, how to develop, how to etc.. When they laid me off, I decided to fly solo. Financially,
2007 = 100 is base corp job.
2008 = 150
2009 = 240
2010 = 360
The only regret I have is lack of vacation. I didn't take any vacation longer than two work days in the last three years.
I am recommending to everybody, who has a need for enterprenural rush. 🙂 Try it at least once. If it doesn't work, big crop jobs are always there.
Don't worry, I'm totally over that 'get out there and make work, start your own company stuff" too!
I don't have the stomach for it, and not sure I ever will.
I do a bit of freelance work right now, and chasing payment (although I've only ever had issues once or twice) is a bitch.
great points – every one! I have a friend who rushed headlong into his own "business" but took no time to ponder that his life, pre-business, was actually much more to his liking. Now he regrets the move but of course is too prideful to change course. We must let go of pride, and make honest, critiqued decisions that reflect what our real values are.
Great observation. It\’s not to say either side is wrong, just… be careful when you make a move either way. 🙂
Chris, you nailed it on this for me. I made that mistake myself. It was very hard to change my path and admit that I had failed – now I can look at it and say that I learned.
Coming out of lurkdom to comment. Great Post! I've shared that while my job isn't my passion, I actually like what I do, am good at it and the salary and benefits are great. I have a lot of debt and it sure is tempting when reading about all the folks who are paying it off from ad sales and the like on their blogs. But, that's only one side of the story I'm sure. There are benefits and there are sacrifices. I'm so happy that you've decided to put out an objective personal analysis.
Thank you for delurking to lend your side to the story.
I agree that there are good and bad sides to each employment, but I really don\’t want people to see it as the solution to everything!
This sounds so strange (of course) coming from a freelancer, but someone has to say it.
Oh goodness yes! I've been working from home for ages and recently went into an office as an outside consultant for about a month. I'd submit invoices and they would be paid a week later – no need for follow-up invoices or waiting for money to get here "whenever." Freelancing is definitely not the way to riches and does require a lot of financial discipline!
Thanks for sharing this – I've noticed too that "Be your own boss" is sometimes treated like a catch-all solution.
Even if you are your own boss, you still have to WORK, and often you have to work very hard. It's certainly an option to consider, but it isn't the solution for everyone.
"But I’m starting to feel slightly put off by the wave of rah-rah entrepreneurship that has been sweeping through the internet as of late."
Oh man, oh man, am I tired of this ish, too. I mean, yes, I do love some of the stuff these people are trying to tell us – believe in yourself, you're awesome, etc – but the constant noise of being sold their product so I can be my own boss is so grating to me. You're 100% right that not everyone is cut out for freelance work and/or working for themselves. I highly suspect I'm one of those people. I do respect those entrepreneurs who have been successful at their business of selling startup and motivational products to those who feel they're made to freelance – go them! But I'm very tired of everything being a sales pitch and being told that being in business for myself is the only way to go (and if I'm working for someone else, I'm stupid).
Exactly. Just because you work for someone else, doesn\’t make you stupid. I feel like that\’s the subtle message that\’s going out and I want to quash it.