Self-employment vs Working for a Construction Firm: Which is Better?

Once you’ve built up enough experience in the construction industry, you’ll be faced with the choice of continuing to work for someone else, and striking out on your own. Self-employment holds a certain kind of romantic appeal for many. But does the reality make the switch worthwhile? Let’s assess some of the advantages and drawbacks.

Pros and Cons of Self-employment

If you’re self-employed, you’ll be responsible for everything about your business. That means you’ll have the freedom to choose your own hours, customers, and methods – but that you’ll also be responsible for the consequences of those decisions. For some, this might be a key advantage – for others, it might be a challenge too far.

Contractors generally have scope to earn more, but only if they work in the right way, and take business seriously. There are a number of soft skills you’ll need to develop, alongside things like marketing, finance and law, if you want to truly thrive in the trade. Get to grips with all of the financial tricks. Many of them might make a big difference.

It’s also worth factoring in the added costs you’ll incur. You’ll need to pay for your own tools and equipment, and your own transport. Think not just about the cost of your van, but the cost of running it, too. For example, you might need to replace your tyres, top up your oil levels, and replenish the screenwash. When you’re relying on your vehicle for your income, it pays to be proactive. 

Pros and cons of working for a construction firm

When you’re a salaried employee, you’ll get a number of benefits that self-employed people leave behind. You’ll tend to spend more time doing construction work, mainly, and less time thinking about how you’ll deal with HMRC. You’ll also have less freedom to decide what you’re doing – someone will tell you where to go, and what to do, and when. 

This often makes life simple in a way that many appreciate, especially if they’re not yet familiar with the trade. Working as an employee will also provide security. You’ll get a guaranteed income, and you’ll get benefits like sick pay. These benefits vary from position to position, so make sure you consider them before accepting a role.

Conclusion

The type of working arrangements you prefer will depend on your level of experience, and your personal disposition. Some workers will feel a burning desire to start their own business and show what they can do; others might be a little more conservative. Before setting up your own business, it’s a good idea to save up a cushion of cash. It will take time for word of your services to spread, and so you’ll find life much less stressful if you know that you’re financially secure.