Ready to Leave Corporate Life? 3 Reasons to Go Solo… and 7 Reasons NOT To

The world of work–and especially corporate work–is rapidly changing. I’ve been shouting this into the wind for the past year and I hope some of you are hearing me. Whether the economy is shaky or strong, rising or falling, companies are outsourcing more and more work to third parties, consultants, and independent contractors. They want to mitigate their risk, pay for the work they need (and not for what they don’t), maximize flexibility, and leverage the best of human and AI capabilities. In response to this change, joining the ranks of independent workers is the new normal.

The “Gig Economy” Has Arrived

At age 26, I started as an independent contractor much earlier than most other knowledge workers, especially at the time. In 2005, to most people, it seemed crazy to leave the corporate track and forgo the cushy office culture of titles, promotions, company training, softball teams, and holiday parties. But a lot has changed over the past twenty years.

The number of full-time independent contractors (sometimes referred to as the “1099 economy” in the US) has doubled in the past 5 years. In July 2023, independent contractors made up 7.4% of total employment in the US, or 11.9 million people (according to the Bureau of Labor Statistics). In 2024, 31% of full-time workers viewed working independently as less risky compared to just 18% in 2018, and some 70% of Gen Z and Millennials today say they are considering earning additional income through a side project or business in the next year.

The term "gig economy" was coined by New Yorker editor Tina Brown in 2009 to show how workers in the knowledge economy were pursuing “a bunch of free-floating projects, consultancies, and part-time bits and pieces while they transacted in a digital marketplace.” It’s an idea borrowed from the music world where performers book "gigs." Today’s app-based freelancers (working for Uber, Task Rabbit, Amazon, and DoorDash) are called gig workers, too. If it wasn’t clear to you already, the market for independent knowledge workers (or “gig workers”) continues to expand faster than the economy as a whole–and it's here to stay.?

I believe this new workforce is a huge opportunity for many professionals and other knowledge workers, but there’s no “easy button” to success, which I’m sure you already know. I can’t speak for everyone because every consultant, entrepreneur, and business owner has a different journey. But here are some of my lessons learned that I hope can help you.

Why Join the Gig Economy

Maybe you are thinking of going solo because of a layoff. You could be exhausted and frustrated with the relentless “do more with less” culture you've been working in. You may have one client you’ve started with but are looking to grow into gig work full time. Perhaps you’ve enjoyed many good years as an employee, but are ready for a change (but not ready to play golf and bocce ball every day). Or maybe, like many others, you can’t find the right job. No matter what your reason, you can turn this into your advantage.

If you are looking to get into gig work, it’s best (but not necessary) to have a compelling reason. Don’t rush out and give your “two weeks notice” on a whim after getting jazzed-up after listening to some entrepreneurial podcast or hearing an energizing Ted Talk. (I say, pour yourself a “stiff drink” first.)

Consider the following reasons why you should take the leap into solo work.

1. It’s the way of today and the future.

Organizations everywhere are moving to a higher and higher percentage of consultants, contractors, and third parties. This is not something in the distant future. It’s happening everywhere in my home city of Calgary with hiring freezes, transformation projects, outsourcing projects, and a ruthless focus on “do more with less.” It’s happening all across North America, too. When there were major layoffs in IT in the US two years ago in the tech sector, many of these terminated employees were hired back as contractors. It was a strategy US companies were taking to de-risk themselves and avoid paying for their expensive health care plans. Even though Canadian health care is subsidized, we’ve seen a shift to more and more gig workers too. With the rise of technology and increased uncertainty and the need for companies to de-risk themselves, the trend of gig work shows no sign of reversing.

2. It’s lower risk.

This may come as controversial. However, I believe the new world of consulting and gig work is, in fact, lower risk than many (if not most) jobs nowadays. Layoffs are increasing. Transformation is changing how we work. Pension plans have largely disappeared. Retirement at 65 with a gold watch is a thing of the past. Outsourcing is rampant. The only thing you can count on in today’s economy and work world is the continual risk of disruption. Jobs are becoming riskier and riskier. If you lose your job, you may get a few months or a few weeks payout, and that’s it. Your relationships, experiences, and personal brand are often tied to the organization and you find yourself rebuilding from scratch. When you are a contractor, you typically have (or should have) multiple sources of income. The more years you are in business and the more you grow your networks, the more these sources and connections should grow. As you grow, you can also hire or subcontract to others that grow your sources of income.

There are typically increased risks in the short-term as you grow more stable clients. But the risks go down in the long run. You will have more clients, more paths to success, and more streams of income. Gig workers have more freedom than an employee to brand yourself, promote yourself, and share your story. While salaried employees can brand themselves, they are often restricted in what they can say or not and need approval to attend and speak at events, do interviews, post articles and ideas online, and have their own voice in their industry.?

(BTW, unfortunately, our banks don’t view things this way. My husband and I recently took out a very modest secured business line of credit — as self-employed people, we had about 10 times the paperwork and hassle as would salaried employees!)

3. You like to build and create.

We all have a deep human desire to place our mark on the world. Consulting and business ownership is by nature a creative endeavor. All of the business owners that I know, whether they are coaches, owners of drycleaners, engineers, accountants, lawyers, counselors, engineers, marketers, or other — all have a desire in them to build something. This is a desire that goes beyond the paycheck.?

When you are an employee, you are working for someone else’s vision. And there is nothing wrong with that. I work with a lot of uber-smart, uber-successful CFOs who have no desire to build their own company, but see their role as the key executor for their visionary CEOs. But working for someone else’s vision is not for everyone. If it’s not for you, gig work may be better for you.

When You Shouldn’t Join the Gig Economy

Gig work isn’t for everyone. I have worked with and hired people who tried it and absolutely hated it. They hated having to find work. They hated the administration. They hated the lack of seniority. They hated the lack of perks (like pizza Wednesdays and free coffee). They hated the lack of structure. They hated not having resources or a team. (I can list a lot more “hates” for you too.)

Here are my top reasons you should not join the gig economy.

1. You like to be told what to do.

If you like to have your work neatly defined for you, gig work is not for you. Gig work is better suited for people who like to create systems, processes, and ways of working for others. I admit to being someone who enjoys creating my own rules (which is neither a good thing or a bad thing). It means I am not the best employee but I am a great gig worker. If you prefer clearly defined tasks and responsibilities, I recommend that you stick with having a job.

2. You hate rejection.

I have a friend who still talks about the firm that didn’t hire her 25 years ago. (Who cares?) If you can’t handle rejection, gig work will be hard on you. No one loves rejection, but some of us are more naturally suited to handle it. (Check out my article on rejection and failure for more information.) The ability to deal with rejection is one of the key ingredients of a successful consultant or independent contractor.

3. You don’t like looking stupid.

I get it. No one likes looking stupid. But what I have learned from many years of consulting and business ownership is that you do have to risk looking stupid to advance on anything in business (and in life). You need the rejected projects. Or the presentations that flop. Or the articles no one reads. Or the prospect that ghosts you. (I could go with this list.) Why? Because only then do you learn what works and what doesn’t, and what you’re capable of if you put your mind and effort to it.?

4. You lack discipline.

Many people have a false understanding that gig workers “work when you feel like it” or that you enjoy much greater flexibility than your job-going friends. This is baloney for the most part. Gig work requires a much greater degree of discipline than having a job. You need the discipline to handle tough deadlines and to network. You need the tenacity to promote and market yourself, even though the rewards and paybacks are never certain or often come years down the road.

5. You don’t like networking.

While I have seen exceptions to this, most successful gig workers I know are good networkers. They may not be extroverted, life-of-the-party types, but they like to meet people and are curious. Gig workers need to be constantly selling, promoting, and connecting. The more people you know and talk to and the events, conferences, and social events you attend will strengthen your ability to bring in more work.

6. You don’t like figuring things out for yourself.

When you are starting out, you become your own IT, accounting, marketing, PR, customer delivery, and operations departments. Contrary to popular misconception and mis-advertising, there isn’t one playbook that will solve your gig work problems. There’s a lot of advice out there, but it will largely be up to you to figure things out, especially? in the beginning, and call your own shots.?

7. You have a big ego.

While employees have fancy titles, swank offices, recognition badges, long service dinners, thank-you lunches, kudos awards, and so on, you will rarely get praise from your clients. Your reward is money. Your reward is knowledge of different organizations and industries. Your reward is the feeling that comes from a project well-done–and especially getting the client back next year. Ego destroys even the most promising gig worker. Gig work demands you check your ego at the door.

So, Side-by-Side…

Putting this all together, here’s a side-by-side, pros and cons list, to help you test out when, how, and if to make the gg economy work for you.

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You are reading the first of two articles within the series on gig work and independent contracting. Stay tuned for the next article which will offer practical steps to increase your odds of success and your profits.