I was going to post this on another thread but wondered if it warranted its own discussion rather than nicking someone elses space.
I have read a few threads about folk wanting to start their own businesses and I wondered with a few of them, do they mean that, or do they simply mean that they want to be self employed and after all, is there a difference?
About 11 years ago, at the age of 47, I found myself unemployed for the first time since leaving school in '65. After many failed attempts and rejections, where age seemed to be an issue, at trying to find a job, I decided I was going to have to do something or fester away on the dole.
I had no money, an old van that someone gave me, some basic tools and the promise of a couple of weeks working self employed.
Well here I am years later, still at it, still skint and now employ a small team. The thing is, I still don't think of myself as 'owning my own business' as some people put it, I'm just a self employed geezer who still has to graft and still drives an old van!
I love the one that says to me," it must be great working for yourself, no one to boss you around" ........ha ha ha forget it! When you are self employed, you have more 'bosses' than ever! Customers!! So.......'self employed' or 'having your own business'.........whats the difference?

Well, starting a business, and being self employed is the same. You are still a small business definitively. Maybe mentally you don't see it as that, but to the tax man, and to the government, you are considered as a small enterprise.

A lot of people think about a business as growing it and expanding it to make a lot of money, so therefore employing more people. Yet, some people who are self employed, and the product or service that they provide links to themselves may actually not see as more than a job which they do. Which also happens to be doing the account books, or consider the goal or direction of the company.

To be honest, I think as an employee in a company, you are expected to follow the goal and direction of the company whether you like it or not. Being your own boss allows you to control your own life and goal of the company a lot more, and change the direction of the goal even if you don't like it. Yes, maybe you are dictated by the customers or the market trend, but at the end of the day, you do call the shots.

Hmmmm.... Good question, in a 'mature' business you have set up a structure and a team so that you as an indiviual are replaceable, and able to take a step back. You have to grow a business to this mature stage, which can take a lot of time and effort.
As a self employed person with 'grafters' you are never in that situation, are you?

The other difference is liability, as a self employed person you are personally liable should your 'business' go wrong. As a company director you are only liable should you have acted improperly.