There are some wrong reasons for working at your own risk that are more likely to lead to disappointment. People often develop the idea of self-employment because they are unhappy in their current job. Self-employment should not simply be a way to escape an unpleasant situation, but should be based on a clear vision and passion.
The idea of earning a high income in a very short time is rarely realistic. In fact, most self-employed people earn very little money in the early stages or even get into debt. It can take years for a profitable business to develop. A more comfortable way of life is also unlikely. Building your own business requires much more time and effort than many initially expect.
Which personality traits are helpful
A strong determination and the absolute will not to be intimidated by setbacks are crucial for later success. As a self-employed person, you should have the ability to adapt to changes in the market, within the industry or in your own company at any time. In addition to the obligatory willingness to take risks, a strong self-motivation is important, as you work without external control and have to organize your tasks independently.
If you don’t have a clear vision or business idea, you will quickly run into difficulties. Inadequate market analysis and ignoring customer needs can also have fatal consequences. If you are not prepared to continuously develop, it will be difficult to be successful. Likewise, a passive or reactive attitude can lead to missed opportunities and competitors dominating the market while you stand still. In such cases, the risk of failure is high right from the start.
Financial resources in the initial phase
It is crucial to have liquidity right from the start. Capital reserves enable you to make necessary investments without immediately coming under pressure. They also provide a financial buffer to cushion unforeseen expenses or a slower start of orders. Sufficient liquidity helps to survive the first few months when income may not yet be stable.
Starting up a business without financial means usually requires a lot of creativity, commitment and perseverance. In this situation, you are often forced to first gain financial security from another source of income before you can take the step into full-time self-employment.
A sensible combination for the start
By having a job subject to social insurance contributions, you have a regular income that offers financial security while you start up a business. This covers your own living expenses and at the same time helps you invest in the business idea. In addition, you pay into the social security systems (health, pension and unemployment insurance), which gives you a certain level of security while the transition to self-employment is being planned.
The combination of both models allows you to gain experience in professional life and build up a network that may also be useful in self-employment. It reduces the pressure considerably, as you are not immediately dependent on the income you generate yourself. In the long term, once the business concept takes shape, you can reduce your hours or give up the job altogether if you are ready to go full-time self-employed.
Self-employment: Why it offers opportunities | What you need for success | Who can provide financial support – all articles at a glance.
