By Laura Gayle, Business Woman Guide
The world of the solopreneur — or freelancer, contractor, or any other solo worker who isn’t in a “traditional” employee situation — can be a rewarding one, but those who want to take the plunge have to reckon with how solitary that world is, in more ways than one. For many, the benefits of going out on their own eventually outweigh the hindrances, but the adjustment period can be interesting.
If you’re thinking about setting out on your own, you can counter potential disadvantages from the get-go. When you look at the 5 hardest things about working alone, you may find they’re easier to conquer than you thought.
Time Management
A top issue for many new solopreneurs is time management. One of the first tasks you must address is how to manage your time so that you get your work done while still allowing time for breaks, meals, fun, and sleep. You’ve got to establish a schedule that you can stick to.
Finding your most productive times is essential. Be aware that your most productive times when you work on your own could be vastly different from the hours you worked as an employee. You may find that you do your best work at 4 a.m., or you could find that starting your day at 2 p.m. lets you get a tremendous amount of work done.
One great solution is time-tracking software, which you can download onto your computer to track your time usage on different tasks. These let you see just how much time you’re spending on schedule-killers like email versus tasks that get you measurably closer to your deadline or goal. Many also allow you to track expenses and run reports to help you see a bigger picture.
For others who work alone, the Pomodoro Technique can be a lifesaver. This is a method in which you work in timed blocks with designated breaks. The concept behind the technique is two-fold: One, you know that timer is going to go off, so you end up working more diligently to get things done before your mandated break. And two, the breaks serve to refresh your mind. Often you may think you’re doing well — but truthfully, if you haven’t taken a break, you might not be doing as well as you think.
Where to Get Benefits and Retirement Savings
Another issue is the loss of employer-provided benefits and retirement programs. It can be scary to think of facing the insurance marketplace by yourself, especially is you’ve always relied on employers to choose your plan. Do your research carefully before committing to any policy.
If you had health insurance at your old job, you’ll likely be eligible for COBRA; otherwise, you can sign up for your own insurance through a health insurance company or your state’s exchange. Your change in job status counts as a special circumstance that should allow you to get health insurance outside the open enrollment period.
As for additional insurance, such as accident insurance, speak with an insurance agent; if they can’t provide those policies, they can point you toward secondary insurance companies that can.
Retirement savings, when you’re self-employed, don’t have the benefit of an employer contributing matching money. But you can open a solo 401(k) if you don’t have employees, and these accounts let you act as both employee and employer. In other words, you can make dual contributions, or essentially match your own contribution.
Irregular Income
Freelancers joke about chasing checks, but the truth is, that irregular income is no laughing matter. You have to set up a budget that lets you pay your bills while not depending on regular payments.
If you’re earning enough to have at least a month’s worth of bills socked away, you can try paying yourself a monthly salary (it can be as informal as simply transferring funds between accounts). If you’re still in the eking-by stage, just start putting something — anything — aside with every payment. You want to get to a place where you’re earning and getting paid at least a month ahead of your bills. It also helps to see what bills you can reduce, which may involve cutting out extras or even taking more extreme steps such as moving to a city with lower rents, like Charlotte, North Carolina.
No Watercooler Social Scene
If you’re kind of a loner, the lack of a social scene might not wear on you that much. But if you end up missing other people during the workweek, try renting a co-working space or joining local professional organizations that hold regular meetings. How often you go to these events or spaces depends on how much interaction you need. But co-working spaces can introduce you to other solo workers in your area while also giving you a more social setting in which to get your work done.
Taking Responsibility for Everything
From staying motivated to paying the bills, buying supplies to handling taxes — when you work on your own, you have to handle everything. Sure, you can have an accountant do your taxes, and you can buy supplies in bulk, but you’re still the one making all the decisions.
While you can’t predict everything that will happen, you can take steps to shore up your business as much as possible in predictable areas, such as by addressing cybersecurity from the start. Set up a secure cloud server for backups and re-evaluate the antivirus programs you use, for a start.
All this can seem like a lot at first. But if you approach your business bit by bit, day by day, soon you’ll see it take shape. Adjust your schedule and other approaches to your work as needed — and soon you’ll enjoy the freedom of being your own boss.