Has your job search lasted so long that you are considering working for yourself? The opportunity to get paid while setting your own hours sounds like the perfect set-up. Before you totally give up on your job search, however, consider some of the pros and cons of becoming self-employed.

Analyze the Risks

Since you may not have a job already, the leap to becoming self-employed may not be the same as if you were giving up a lucrative paycheck and career for the absolute unknown and relying solely on your ability to run a business. There are, however, still many risks involved in starting a business. While many of the challenges are different, the risks are still just as great. Spending money you don’t have to lose or taking time away from a prospective job search, are just some of the risks involved. If you are using the little bit of savings you have left, or leveraging your house to pay for the venture will increase the risks. Find an expert to talk to about the startup costs and paperwork necessary to start a business.

Is the business sustainable?

Remember one of the reasons you decided to become self-employed is because of an unsuccessful job search. Is your new venture a passion? Is it sustainable in the current market? Sometimes people will start businesses that require customers to lay out huge sums of cash. In a tight job market, if you don’t have cash for luxury items, what are the chances that others will have disposable cash to purchase your product? You need to make sure there is a enough of a market that you are not further depleting your dwindling funds to float a sinking ship. In other words, do your research to determine your target audience and product needs.

What about family time?

There is a huge difference between being self-employed and running a business and working for someone else. Depending on the job, when you work for someone else the hours are pretty much set. This allows you to spend time with the family and take care of needed tasks around the house. Self-employment, however, is often unpredictable and requires long hours. If you’re lucky enough to land a big, or even many small clients, your income will be based mainly on how well you service your customers. The need for income will often outweigh the family time.

When the job market is tight, many people turn to self-employment to earn income. Before making this decision, however, it’s imperative to weight the risks in regards to both family and finances.

NEWSLETTER: Subscribe to our free weekly newsletter of updates to the Job Search site by filling in the blank below the article with your email address - which is never passed on beyond this site.