Pros and Cons of Pros and Cons of Business Models Business Models

By Val A. Slastnikov,By Val A. Slastnikov,

Business Models ExpertBusiness Models Expert© 2010 Digitizer Group. All rights reserved© 2010 Digitizer Group. All rights reserved

PART FIVEPART FIVE(Pros and Cons (Pros and Cons

Of Self Employed Of Self Employed Model)Model)

What is Self-What is Self-Employment?Employment?

Self-employedSelf-employed is a person who works for is a person who works for himself/herself instead of being an employee of himself/herself instead of being an employee of another person or organization, drawing income another person or organization, drawing income from a trade or business.from a trade or business.

Is Self-Employment for Is Self-Employment for you?you?

Who belongs in this Who belongs in this category?category?

Consultants, Doctors, Lawyers, Consultants, Doctors, Lawyers, Accountants, etc.Accountants, etc.

Do you have what it takes Do you have what it takes to be Self-Employed?to be Self-Employed?

““Self-employment” Self-employment” Pros Pros

Self-employed

Startup Costs:

Low

Carrying Costs:

Low

Control:

High

Customer Base:

Unlimited

Multiple Income

Streams:Yes

““Self-employment” Self-employment” Cons Cons

Self-employed

Replicability:

Low

Leverage:

No

Scalability:

Limited

GrowthPotential: Limited

Profitability:

Low

““Self-Employed” Self-Employed” Business ModelBusiness Model

Pros: Pros: 55 Cons:Cons: 5 5

Self-employed

Startup Costs:

Low

Carrying Costs:

Low

Control:

High

Customer Base:

Unlimited

Multiple Income

Streams:Yes

Self-employed

Replicability:

Low

Leverage:

No

Scalability:

Limited

GrowthPotential:

Limited

Profitability:

Low

Level of Effectiveness = 50%Level of Effectiveness = 50%

AnalysisAnalysis

Self-Employment Facts:Self-Employment Facts:

The common thread of all self-employed: The common thread of all self-employed: dreaming of setting your own schedule and dreaming of setting your own schedule and choosing your own projects.choosing your own projects.

The pros and cons of self-employment are often The pros and cons of self-employment are often two sides of the same coin. two sides of the same coin.

Independent people, like you, often relish the Independent people, like you, often relish the idea of owning a business and not having a boss.idea of owning a business and not having a boss.

AnalysisAnalysis

Self-Employment Self-Employment Advantages/Disadvantages:Advantages/Disadvantages:

Every client will become your boss - as will the Every client will become your boss - as will the banks and other people who provide you with banks and other people who provide you with funding or credit to get your business going.funding or credit to get your business going.

Freedom of flexible hours remains a dream. In Freedom of flexible hours remains a dream. In reality, you will be putting in more than full-time reality, you will be putting in more than full-time hours for at least the first year, as you get your hours for at least the first year, as you get your business off the ground.business off the ground.

QuoteQuote

““It takes more than enthusiasm It takes more than enthusiasm and a business concept to become and a business concept to become

sustainably self-employed.” sustainably self-employed.”

- Johanna Kristolaitis ‘The Medium - Johanna Kristolaitis ‘The Medium Online”Online”

TakeawaysTakeaways

Self-Employment is not for everyone. Self-Employment is not for everyone. It requires an independent mindset, It requires an independent mindset, utmost dedication, superior utmost dedication, superior organizational skills, and a burning organizational skills, and a burning desire to succeed.desire to succeed.

Where do you go from Where do you go from here?here?

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PART SIX