14 Advantages and disadvantages of being self-employed in the IT sector

In recent years we have noticed an increasing demand for specialists in the field of BI and Big Data. Many permanent positions, but also the freelance vacancies are increasing. More and more within these areas are therefore wondering whether it is worth becoming a self-employed person without employees. Questions such as “how do I find customers?”, “isn't it difficult to arrange everything yourself?” and “can I do that?” cause doubt. As Visser and Van Baars, we naturally come into contact with specialists in paid employment and as self-employed people without employees, so we looked into the pros and cons for you.

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The pros and cons of being self-employed

There are several advantages and disadvantages to becoming self-employed. The freedom of entrepreneurship beckons many, but there are a lot of risks involved that you will bear all alone. The tax benefits often do not outweigh the costs you have to incur for your company and self-employment can also be very lonely. Advantages and disadvantages are often personal, but we have listed the general advantages and disadvantages below for you.

6 advantages of being self-employed

1. You make all the important decisions yourself
When you are self-employed, you can choose which assignments you do and how many hours per month you actually want to work. You determine your own rates, terms of employment and which extras you receive “from the company”. This way you can organize your work the way you want and you can work when it suits you.

2. Due to a higher hourly rate, you often have more left over at the end of the month
As an entrepreneur you often get paid more than someone who is employed. This makes sense, because they buy less risk and more flexibility with you than when they hire an employee. When you have determined a good hourly rate, you can have more left over at the end of the month than if you were employed.

3. You can specialize and choose courses that suit you completely
You are also in charge when it comes to development. Do you want to specialize in another field or expand your current knowledge? It doesn't matter, because you can decide for yourself which courses and courses you follow.

4. As your own boss, you decide on the future of your own company
Which customers you will or will not take on, which trends you will follow and in which building the company will settle is all up to you. Decisions about the future of your company are also in your hands. This freedom ensures that you can always choose what you feel good about.

5. You arrange your own times and work when you want to work
One of the biggest advantages of being self-employed is the flexibility in the location and the number of hours you work. Whether you want to work from home, at the client's home or from a tropical location, you decide where and when you work.

6. As an entrepreneur you have some tax advantages
Of course, it depends on which legal form you choose, but as an entrepreneur you also have various tax benefits.

8 disadvantages of being self-employed

1. The administration
As an entrepreneur you are obliged to keep extensive records. This often takes many hours at your own expense. You also have to keep track of this almost weekly in order not to lose the overview. You can of course hire an accountant for this, but there are costs involved that you might prefer to avoid in the beginning.

2. Insecure income
As a self-employed person, it often takes a while before you can generate a stable income from your own business. And even when you get to that point, your income remains an uncertain factor. Illness or a customer who drops out can suddenly cause you to have a lot less income.

3. Buying a house is more difficult
Banks are getting easier, but as a self-employed person you still lose out to people with a permanent contract. It does not matter how much money you have earned in recent months, the bank sees you as a risk and will only provide you with a good mortgage after a number of years.

4. You are the boss of your own time, but also responsible for your own income
Of course, being in charge of your own time sounds wonderful, but most of the self-employed people we speak to work more now than when they were still employed. In addition to the many invisible hours you spend on acquisition and administration, for example, taking time off also means less income. You have no vacation days and therefore hand in immediately when you are not working.

5. Training and staying up-to-date within your field are at your own expense
You can do any course you want, but here too you lose time that can also be spent on a paid assignment. In practice, you will therefore probably do much less training and courses than you might want.

6. You have to provide yourself with a laptop, phone, car and insurance
You have to arrange all those perks that you now receive from your employer for yourself. You can all buy a laptop, telephone and car “at the office”, but you will really have to pay for it yourself. You must also take out liability insurance and legal expenses insurance to ensure that you are well protected.

7. Your sparring partner is missing
When you run into problems, you are often on your own. When we speak to freelancers, missing a sparring partner in difficult situations is often high on the “disadvantages list”.

8. You have to do your own acquisition
As a self-employed person, it is up to you to bring in customers yourself. Especially in the beginning, when you don't have an extensive network yet, this can be a challenge. Selling yourself is seen by many self-employed people as “peddling with yourself” and is definitely number one when it comes to the disadvantages of being self-employed.

How we can make your life as a freelancer easier

As Visser and Van Baars, we can assist you on your way to entrepreneurship. We have the network that entrepreneurs often lack in the start-up phase. Because we have been active in the BI and Big Data market for years, we are always aware of the latest jobs and we can introduce you to various potential clients.

Feel free to contact us if you are unsure about the step towards becoming a self-employed person. We are happy to tell you more about the possibilities on the market without obligation. Already convinced? View our freelance data vacancies . Not sure if we also serve your specialty? View our overview of data expertises .

Also read our blog about becoming a freelancer in IT .