Small businesses have consistently played a major role in economic growth because they create so many jobs—many more than large businesses. In the annual study of small business by The U.S. Small Business Administration, it can be seen that in 2018, small businesses added 1.9 million new jobs from 30.2 million small businesses in the United States.
As you can imagine, small business was key for the nation’s recovery from the recession. Between the middle of 2009 and the middle of 2013, 60% of the jobs created were from small businesses.
That’s all very well. But what about the self-employed? The freelancers, the consultants, the moonlighters, and the part-timers? Just how many people are we talking about? Although estimates vary, the percentage of the workforce who are self-employed and freelance is higher than ever today and growing.
For example, there are 15 million—or 10.1% of the total labor force—self-employed workers, according to the U.S. government, which uses a narrow definition of the self-employed. Another study classified 41.8 million Americans as independents, defining them as consultants, freelancers, contractors, temporary, or on-call workers.
Despite the discrepancy, these numbers show an important and rising trend of self-sufficient, affluent, well-educated young people.
The thing about being a freelancer, otherwise known as “being your own boss,” is that whether you like it or not, you are a one-man-band. That means all aspects of your company of one fall on your shoulders - tough and resilient as they may be.
Being a new entrepreneur can be an overwhelming and stressful endeavor at times. There is no end to the many financial issues that will come up as you grow your business.
Reducing your debt and scrutinizing your spending habits can help you stay on top of your budget. Your income and expenses need to stay balanced to maintain a growing venture. Invest wisely, save your profits, and keep your overheads as low as possible. Learn to live on a frugal budget until your hard work pays off, and you start to see bigger revenue flooding into the company.
You may need a savvy business lawyer for your company, one who has regularly formed and advised many other entrepreneurs and who specializes in startups. An experienced startup lawyer can help you incorporate your business, draw up contracts with any co-founders, prepare key agreements for the business, and set up a stock option plan for any employees.
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