Q:

What are the risks & rewards of being a self-employed independent contractor / consultant vs. being a permanent employee? 

What are the risks & rewards of being a self-employed independent contractor / consultant vs. being a permanent employee? 
Note: I am, in fact, a self-employed independent consultant, and I often get asked this question by friends who are in traditional employment.   Before I answer my own question, what do you think? 

A:

When I worked for myself it was bad because

My work week was often WAY more than 40 hours
I had to do lots of things in my job I didn't like

Pay taxes quarterly
Send invoices
Calculate mileage
Register business names with municpalities and other boring paperwork. 

I had to fire people
I had to get yelled at by customers when I was wrong or made a mistake
I couldn't get someone to cover for me
No employer health benefits
No employer matching 401K
No severance, cashed in vacation or sick leave

But

I set my own hours
I could work harder and make more, work less and earn less
I didn't have to answer to a micromanaging boss
No office politics
Miller Time was whenever I wanted
My potential for earning was limitless
There are lots of tax breaks and programs for saving money as a business
I got to hire people who were good workers and was respected
No micromanaging boss
No doing stuff I hated because it was in my job description

Ultimately I gave up my business and went to work for a school teaching, and through a series of other jobs ended up in a very stable reliable trustworthy job.   When I was younger the variable paycheck didn't outweigh the freedom.   Now that I am a dad I only think about having insurance and a secure job. 
The other option to consider is having a regular job, and then doing a little side work for yourself.   You get all the benefits of both (and all the detractions)

