Thank you for joining us today here at Start Massage Biz, your online resource for creating a massage therapy or bodyworker business that you love! Today we are talking about the pros and cons of being self-employed!
There are so many reasons to become self-employed or a business owner. But it’s not all sunshine and rainbows. There are some headaches too. Read on for more.
- Fire your clients, when necessary. Have you ever had to work with a client, because your boss wouldn’t fire them for borderline bad behavior? Sorry, I know that sucks.
- Pick your specialties and design unique services. You will have the ability to pick a speciality you are passionate about. You have the potential to become an expert in your field.
- Decorate your location in your own tastes. Do you hate that color of sea foam green your boss choice? When you’re the boss, you get to pick the colors, style and branding of your business.
- Create your own hours. Tired of working until 8 or 9pm? If you rent a space that is available to you all month, then you will have your choice of office hours.
- Charge what you are worth and what will sustain you. Employed massage therapist make as low as $16/hr, barely over a living wage. When you are the boss, you can keep so much more.
- Keep as much profit as possible. As the boss, you are in charge of what your expenses are. If you keep your expenses low, you can keep as much of the profit in your own pocket.
- Deduct your expenses. Many of the expenses you incur are tax deductible. This means that Uncle Sam can’t tax your costs of business.
- Scale your business. You can potentially work you way up from being self-employed to being a business owner. You can have employees or contractors and even other locations.
- Sell or franchise your business. In the best case scenario, you business becomes an asset you can sell to another massage therapist or healer when you are ready to retire.
- Better retirement options. Being self-employed or a business owner gives you more retirement options. You can save more of your hard earned money in a tax-free environment.
- Having to fire your clients yourself. Yes, the first pro is also a con – a double edged sword. Firing a clients for bad behavior is never an easy thing to do. Now you’re the one that gets to have the award conversions.
- Paying self-employment tax. Many people know that the government takes takes from their paychecks, but are unaware of the employment taxes that your employer also pays on your behalf. Being self-employed means you pay those additional taxes for yourself. But don’t worry, the ability to deduct your income expense often offsets this additional costs.
- Paying you taxes quarterly instead of bi-monthly. When you get a paycheck, your employer conveniently withdrawls your taxes in every paycheck and you don’t have to worry about it. When your self-employed you will need to make quarterly tax estimates instead.
- You do not have worker’s competition. As an employee, you are automatically enrolled into worker’s competition and disability programs. Being self-employed, you will need to either buy into state disability or provide for your own disability insurance.
- Laundry will always be there for you. If you work for someone else, someone else is probably doing the laundry. When you are self-employed or a business owner, you will be doing your own laundry or paying a premium for someone else to do it.
- Learning money management. Face it, most people are not good with money and you are probably the same. Becoming a boss, means learning and adapting new behaviors around money.
- Do your own marketing. Getting clients in the door will become your most important activity. Marketing and selling skills are useful to an entrepreneur, or should be outsourced to an expert.
- Be your own receptionist. Many massage therapist solo-preneurs become their own receptionist. This is again a job you can outsource easily and cheaply these days.
- Calling your clients when your sick. It’s so hard to take care of yourself when you are a healer. There’s a lot of guilt that goes into this phone call. If you don’t have hired help to do it. You will be the one calling. Don’t worry, most clients understand.
- You have to purchase your own benefits. If you work as an employee for a corporate hotel or spa chain, then you might receive paid-time-off, health or retirement benefits. Such benefits would not be available to you unless you start a similar corporation or purchase them for yourself.
Overall, so many of the cons are small operational headaches that you can outsource to an employee or a vendor. For instance, hiring a good receptionist can take care of cons #1, 2, 5 and 9. Hiring a good accountant can take care of cons #2, 3, and 6. These cons are just small growing pains. Once you have them settled, you are still making it out on top!
What other pros and cons can you think of? How have you solved some of the cons listed? Leave a comment below.
Thanks for tuning in this week!