Self-Employment

Self-employment can be a great option for earning money for some people with disabilities, but not everyone. On this page we’ll look at two options for being self-employed, the advantages and disadvantages of each, and what to think about before trying self-employment.

Why Self-Employment?

When you think about getting a job, you probably picture yourself as an employee with a boss or manager, a schedule, and a regular paycheck. But there are other ways to earn some cash that can let you be more creative and independent:

• Entrepreneurship (setting up your own business or businesses)
• Freelance work (also called “gig” or “contract” work)

Starting a small business or working on a freelance basis takes lots of time and hard work. You are your own boss and responsible for managing yourself. If you are successful, you can choose your own hours, create a flexible schedule, and do work that you enjoy, all while earning money. But it isn’t easy and isn’t for everyone.

Becoming an Entrepreneur

Many people with disabilities have started successful businesses and built a good economic future for themselves and their families. However, before doing so, you need to consider several financial and disability-related factors.

If you are on benefits like Supplemental Security Income (SSI) or Medicaid, you need to learn how to manage the income and savings limits while getting paychecks that vary month-to-month. Learn more about how earnings from a job might impact your disability benefits.

Note: If you get SSI, things you own and need for self-employment may not count as resources. Learn more about Property Essential to Self-Support (PESS).

To Start or Not to Start a Business

Ask yourself, "Is starting my own business right for me?" To be self-employed means that you are responsible for everything related to the business. That means handling every phone call and piece of paperwork. If you hire employees to help, that means being a manager and making sure things are done right.

Are you cut out for self-employment and business management? Some people do better with a regular job.

If you decide to start a business, you’ll have to take care of some things, like figuring out how you can build, repair, or get the credit necessary to start the business itself. Learn more in DB101’s section on Credit.

Disability-related resources like a Plan to Achieve Self-Support (PASS) or Bureau of Vocational Rehabilitation (BVR) are excellent self-employment resources or tools. However, other organizations can help you get started on the road to self-employment, even if they have little or no disability-related experience. These resources are all important for you to make your self-employment plan.

Your Business Plan

A business plan is a flexible, working document that changes over time. It lays out your overall business vision, the market, your business size and scope, your products and services, and logistical management. Developing the plan can help you think things over and choose the best option.

A solid business plan isn’t just good for your own planning, you need it to get loans and set up the business relationships you need to start your company and make it grow. There might be people out there that would love to help your business grow if they think it has potential, and a business plan shows them exactly how much potential your business has.

Managing Your Business Taxes

When you have your own business, your taxes can be complicated and they have to be done right. You may want to talk to a financial expert who can walk you through incorporating your business, managing finances, and paying taxes. It’s best to keep your business and personal finances separate if you are starting a new company. Open a business account at your bank and talk to an expert to make sure everything is in line.

From Planning to Success

After you create your business plan, you need to turn planning into action. First, gather enough money for startup and development costs. Then begin applying your plan in a focused and responsible way. Your first job is to figure out what kind of startup costs you need to make your business successful.

The Bureau of Vocational Rehabilitation (BVR) may help you with one-time expenses (like computers, cash registers, machinery, or even buildings) that you need to start your business, or business coaching to give you feedback and review your business idea to see if it’s workable.

Going Freelance

If you want to work independently but don’t want to start and manage a whole new business, then freelance work could be a good option.

Instead of working as an employee and being told when and where to work, and exactly what to do, a freelancer contracts with companies to provide services as they are needed. Freelancers may be paid per job, task, or hour.

Working this way lets you choose how many hours you’ll work each week, and when. You set your own rates, and can work on projects for different clients at the same time. For example, you might write articles for magazines, and get paid per article. You can write for several different magazines, or write for one on a regular basis.

Typically, as a freelancer, you have to go out and find each individual job. Finding clients might mean browsing Craigslist for jobs, using a specific job-listing website (like www.freelancewriting.com), or emailing or calling companies to offer your services.

Finding clients can be hard at first, but as you gain experience and build your networks, finding new projects gets easier. However, there may be times when you don’t have enough work to keep busy or have too much work and have to turn down or postpone opportunities. Keeping a workable balance between too little and too much work is a constant challenge for freelancers.

Watching Your Taxes as a Freelancer

If you have a job, your employer will take payroll and other taxes out of each paycheck. But if you are a freelancer, it’s up to you to make sure your taxes get paid. To have enough to cover your taxes, it’s best to put about 25%-30% of everything you are paid into a separate savings account, so that it’s there when you have to pay your taxes. Learn more about freelance taxes.

Self-Employment Resources

Get help starting your own business or working as a freelancer.

• MyMoney.gov lists business ownership resources.
• The Small Business Administration (SBA) has guides for how to Plan your business, Launch your business, Manage your business, and Grow your business.
• The Federal Trade Commission (FTC) explains how to spot scam business opportunities or coaching programs.
• Synergies Work connects disabled entrepreneurs with resources and networks that help them launch and grow their businesses.

• The World Institute on Disability offers an interactive online course on self-employment (free account registration required).