Steve Strauss Headshot New.pngDid you hear the one about the guy who drove for Uber and Lyft, and worked for Task Rabbit on the side, and rented out his extra room on Airbnb on weekends?

 

Neither did his girlfriend since she never saw him.

 

By now, you’ve probably heard some buzz on the “gig economy.” If not, the “gig economy” refers to people who support themselves from one contract or project – one gig – to another. Gig workers could be almost anything:

 

  • Musicians and artists
  • Web and graphic designers
  • Carpenters and painters
  • Drivers and shoppers

 

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And apparently there is no shortage of gig workers today. According to US News, one-third of all workers are now part of the gig economy:

 

“A new study published by the McKinsey Global Institute estimates the U.S. holds between 54 million and 68 million “independent workers,” which it defines as “someone who chooses how much to work and when to work, who can move between jobs fluidly and who has multiple employers or clients over the course of the year.”

 

There certainly are a lot of benefits to being a gig worker. The first, and perhaps the most obvious, is the opportunity to be your own boss. Needles to say, making your own schedule, setting your own prices, working wherever and whenever you want, not having a boss, and doing work you (hopefully) enjoy are all very desirable things.

 

However, the gig economy also comes with its share of downfalls and challenges.

 

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For starters, in the gig economy, being your own boss means finding your own gigs. So, not only must you be able to do the task you are hired to do (play that song, create that content) but you must also be a master marketer. This in turn makes the prospect of a steady, reliable income pretty uncertain. When you worked for someone else, work was assigned to you; you didn’t have to go look for it.

 

46722376_s.jpgMoreover, working for yourself means that nobody is paying for your health insurance or vacations. That’s also big change from the world of employment.

 

Being a contract worker similarly requires an incredible amount of self-discipline. Setting your own schedule and hours can be great, but that means that it’s up to you – and only you – to decide what your deadlines are and what your rules are. A gig worker needs to be able to resist the desire to procrastinate and act on impulse – so self-discipline is key.

 

So, this all begs the questions: Is the gig economy worth it?

 

The numbers don’t provide black and white answers, but they are certainly illuminating. Consider that 71% of gig workers have had positive experiences working in the gig industry, yet 58% of gig workers also agree that the gig economy exploits a lack of regulation. These conflicting statistics make it tough to come to any clear-cut conclusion on the gig economy’s ultimate effects and consequences.

 

What we can be (mostly) sure of is that the rise of the gig economy appears to have been born of the confluence of digital technology and the still recent recession. It is no coincidence that 51% of gig economy workers are in the 18-34 age range: yes, Millennials are generally thought of as being the most technologically savvy, as well as the most unlucky in terms of entering the job market. Since 2007, finding jobs has only gotten harder and harder, whereas using technology has gotten easier and easier. That’s the void the gig economy filled. Apps like Postmates, Lyft, and Airbnb have made it significantly easier and less expensive to find a gig.

 

It really comes down to your personal work style and the things you value in work. If your goal is to supplement your primary source of income, then part-time gig work would be great for you. If you’re an artist who wants to take your career into your own hands, then yes, absolutely. If you know how to discipline yourself, handle stress well, market yourself, and be patient, then by all means, the gig economy might be exactly what you’re looking for.

 

While the gig economy began as a means of managing unfortunate economic circumstances, it can be a great way to make a little extra cash while also taking control of your career and getting your work out there.

 

If you want to, you could be your own boss today. And that’s pretty incredible.

 

About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.

 

Web: www.theselfemployed.com or Twitter: @SteveStrauss

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Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license from Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

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