Redefining “security,” or don’t put your eggs all in one basket
Posted in Multiple Streams of Income, choices, entrepreneurship, work on 06/16/2010 05:00 am by NicoleYesterday I was writing about how the biggest thing that I hear from my traditionally employed friends is that they could never go without the security of their paycheck. And someone made a great point in the comments that job security is kind of a fallacy.
When you’re self-employed, it’s simply a different kind of security. To me, it’s just a redefinition, and one that I prefer for three reasons:
1) I can’t get laid off. Nobody else is going to tell me when I’m done working. Even if, say, all the publications I’m writing for go out of business (R.I.P. Wisconsin Woman) I can just go find more gigs elsewhere. Or if that doesn’t work, I can just take my work in a different direction, like working more with web copy. Which brings me to my second point:
2) I can take steps to prevent a downturn for my business. When you run your own business, you are both more in touch with your clients’ needs and more able to respond to them. Instead of going down with the ship, I can change course. If the service I’m offering isn’t one my clients want, I can look at what they do want, and adjust to it. You create your own security by catering to your clients’ needs. The key to this is that you have to put their needs ahead of your own desires when it comes to your business. If they’re not going to pay you for whatever it is you want to do, hold on to that idea and figure out how you can use your skills to provide the service they need.
3) Multiple Streams of Income. To me, this is the heart of stability and security for the self-employed. Even when I have had full-time jobs, I was always freelancing and doing massage on the side. As I’ve mentioned a few times, having someone else tell me that I will only earn X amount per month is the opposite of security to me. Being able to control my income and earn more than my salary every month – that’s great. Not to mention that whenever I was between jobs, it was okay, because I could just work harder on marketing my other businesses, so even though I’ve been unemployed several times, I’ve never actually been without a source of income.
Even if my primary income source disappears, I always have something to fall back on. That’s a kind of security that traditional employment simply cannot provide. Traditional employment favors experts – people who having one job in one field with one skill set- but even for them, it can be a very eggs-in-one-basket kind of deal. Even if you’re THE expert, if your company goes out of business, you’re out of work. I have several interests. I love learning. Therefore, I prefer to have several fields and skill sets, so even if one dries up, I always have something else already in the works.
Admittedly, entrepreneurship will never have the stability of traditional work. There will always be ups and downs to deal with, and never a set payscale to count on. We the self-employed always need to have more savings on hand for the dry spells, and be willing to cut back if necessary. But, with multiple sources of income, self-employment can have more security than any traditional job will ever be able to offer. Having been laid off three times myself, I’ll trade my short-term stability for my long-term security any day.

