Self-Employment Is More Stable Than a Corporate Job
Layoffs have shattered employee trust.
It’s a widely-held opinion that self-employment is unstable. Your income is unpredictable and it’s hard to balance work and life-outside-of-work. An employer gives you a salary, benefits, and security… right?
It was really easy to perpetuate this myth until a few years ago. The corporate world has been ravaged by mass layoffs. Hundreds of thousands of people have found themselves without jobs in an insanely tough economy. In some cases, the layoffs have been announced amidst record profits.
The message is clear: You are disposable.
Meanwhile, as someone who started freelancing full-time in late 2022, I’ve been doing fine. More than fine. Even though my income varies every month — most of my work is ad hoc — it always meets my needs.
I’ll admit that I used to believe self-employment was risky. But I’ve watched friends and former colleagues suffer when their employers toss them aside, while my business has been fine. I’m completely convinced that self-employment (specifically, a solopreneur life) is more stable than working for an employer.
You’re in control of the results.
Another widespread myth: laid-off people weren’t as good at their jobs.
Maybe they were good, but they weren’t the best. The “best” people kept their jobs during company downsizing.
This is also untrue, and a harmful view. Entire departments can be laid off. Nepotism and favoritism can play a role. Sometimes the best people are impacted because they’re earning the most so the company can save more money.
The truth is, if your company decides to do layoffs, there’s little you can do to save yourself. The company chooses its direction forward, not you.
When you’re self-employed, you’re in charge of your own outcome. You’re not dependent on competent leadership, a clear strategic vision, or a manager who likes you.
At a company, you’re dependent on so many other people. You may be excellent at customer service, but sales are slow. You might be savvy with marketing, but the product sucks. You can’t fix company or individual shortcomings.
When you’re a solopreneur, you’re in control. You only need to like working with yourself (ha!) and you’re making decisions about the direction of your business.
Anna Burgess Yang
You manage the entire client relationship.
Corporate environments often have a breakdown between different departments. New clients or customers may have a great sales experience, only to be disappointed later. Or maybe they’re frustrated with products or services. Or maybe accounting screws up an invoice.
Any of these can cause friction in the relationship and any of them can be a reason that a client leaves. Or a customer doesn’t return for additional purchases.
When you’re a solopreneur, you’re managing the relationship end-to-end. You’re making promises upfront (hopefully not overpromising), delivering on what you promised, and crafting the client experience. You’re writing the contract, managing your projects, and sending the invoices.
If there’s a mistake, it’s on you. But on a positive note, if you make a mistake, you also have a relationship with the client and can rectify the situation. You’re not passing it off to another department.
Clients will always leave. Their needs changed, their budget changed, or they weren’t a great fit. But a lot of things are within your control: quality, dependability, and communication.
You avoid office politics.
It’s pretty terrible to do your job, to the best of your ability, and get caught up in office politics. It can range from squabbles within a department to a boss actually hindering your career.
I worked with a team that bickered intensely, all the time. I cringe when I think about how much time was wasted (not to mention the toll on my own mental health). With a solopreneur life, I avoid all of that. I also avoid pointless “watercooler talks” and internal meetings that should have been emails.
My success as a solopreneur isn’t dependent on a colleague liking me. I only need to ensure that my clients like me.
Sure, clients can be frustrating. But they’re also frustrating when you’re at a company. The difference is, I can opt not to work with difficult clients — which can often be an important business decision. Companies will hang on to terrible clients because they need the money, making everyone suffer. But if I’m in a good spot financially, I can drop difficult clients and focus my efforts on finding a better fit.
You are an “easier hire” for a client.
Layoffs are driven by money. The company is either in a dire financial situation and trying to preserve its cash or wants to increase its profits.
A tough economy for full-time employees has actually benefitted me as a solopreneur. My clients are working with tighter budgets. I’m less of a commitment than a full-time hire. They can get the help they need on a part-time or as-needed basis.
I’m also less risky for companies. A full-time hire is a big investment. A freelancer is easier to onboard and, if necessary, easier to end a relationship.
The result? It’s easy for clients to say “yes” to me. That’s why my business has been so successful, even in a tumultuous job market. I’m a good alternative for a full-time internal hire and more companies are turning to freelance or fractional support.
You know your finances.
Layoffs are often a surprise to employees. They had no idea that the company was struggling or the company had decided to eliminate an entire team to “go in another direction.”
No surprise, most companies aren’t transparent. They fear that if employees know that the company is on shaky financial ground, they’ll look for another job (as they rightly should do). Instead, companies maintain control by keeping their finances under wraps so they can decide when an employee’s last day will be.
Does a solopreneur life come with fluctuating finances? Absolutely. My billables are different every month. But I know what to expect and can plan for it. I have a “rainy day” fund if my income is lower than expected.
And if I lose one client, it’s not like my income goes to $0. I have other clients. When you lose a full-time job, you go from earning a full-time salary to $0.
You can pivot if needed.
Most companies are not agile. It takes resources to change strategies (and the bigger the company, the slower they move). So if there are market or buyer shifts, they can’t always respond quickly.
But you can. If you notice a change in what your clients need, you can respond accordingly. You can offer new services or update your messaging. You can advertise in new channels. And while you should certainly plan for any changes, you can move far more nimbly than a company.
Being responsive to market conditions is perhaps one of the best parts of being self-employed. You’re not waiting on anyone else.
If you see an opportunity, you can seize it. It’s your decision.
Check out my free eBook: 17 Smart Tools Solopreneurs Need to Start, Grow, and Scale.