Do you have any idea what percentage of each of your purchases reflects the actual value of the product and what are the overheads? I think about it each time I see a billboard or mean a smiling company representative. Ultimately, it's the customer who pays for them and when I happen to be a customer, I'm not happy to see my money abused in this way.
If you are self-employed, you have the power to reduce the overheads significantly. Just to clarify, here are some examples of overheads and ways of eliminating them:
- taxes - no escaping those, unfortunately
- advertising - if you do not employ Claudia Schiffer to promote your product, your customers will not have to pay her fee
- wages and social insurance payments for the employees - as a customer, I'm not entirely happy to sponsor the paychecks of ladies whose only duty is making coffee and smiling. As a small business owner, I buy only the absolutely necessary services
- expenditure for running an office - not applicable if you work from home (what a wonderful opportunity to save your customers some unnecessary expenditure!)
Possibilities are endless. Gratitude of your customers - guaranteed.
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Comments
A great way to make the transition between 'proper' job and doing your own thing. Get the money with the pressure off :)
Thank you for your comments, they are valuable - you're covering a lot of ground I left unexplored.
When I was adding to my self-employed income by a little part time work at a college, I was the only member of my department, so there was no promotion race or opportunities for me. I was told "People sit in the staff room and talk about promotion, and when the door opens they stop as they don't know who is coming in. But when they see it is you they relax, because you are not in the promotion race and you are a threat to no one. " That's what's great about self-employment, there is no rat race.
What I did for many years was to be primarily self employed, but add some occasional employment on part time and short term contracts. I am going to do a little employment on a part time basis in summer as an exam invigilator. Nice, quiet work on a casual basis that goes well with self employment.
Fingers crossed for you! Thanks
Yes, one of the most bitter things I had learned in my employment years was that 'meritocracy' is a myth. People rise up because they know people, because they have money or because they can destroy competition, not because they deserve it.
PS. Congratulations! So glad to hear of your success!
I hope they are properly jealous now :) I know what you're saying, though. On the other hand, aren't we lucky that some people crave 'proper' structure to their professional lives? Somebody needs to do all the boring jobs :) *half-joking here, but only half*
This is a nice page. I so agree with everything you say. Hope to be self-employed one day. Soon.
My experience of working in the system was that promotion went to the management's mates. That is one reason why I left. As a self-employed person I survive on my own merits, rather than being stifled by others. My tution business has been running since 1988 and has never failed to yield a profit. That's self-employment for you.
When I went self-employed in 1991 my very conventional in-laws equated it with unemployment. One day I was at home. I had a total of six hundred exam papers to mark [not all in one day] an Advanced level correspondence test to check and comment on, and there were two hours of private tution in the evening to come. My back was straining through being too long at my desk, when an inlaw came to the door. When I answered she said, "Oh, you are not working today!" Over time they have come to see it my way.
I'm with you :) Once you get the taste of freedom, it's difficult to let go:)
I've been self employed since 1994 and absolutely love it! I can't imagine having a boss or regular business hours at this point in my life.