Earn a living as a self-entrepreneur?

We all wondered one day how much a self-entrepreneur could earn. Between self-enterprise and micro enterprise, the status gives you great freedom of action. We will try to answer for you the question of how much a self-contractor earns on average.

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  • an entrepreneur: freedom of action
  • How to determine self-business income?
  • What a self-contractor earns
  • Rapidly fluctuating earnings
  • The expenses of self-contractor
    • Many unknowns in the equation

Being an entrepreneur: freedom of action

The self-entrepreneur chooses not only his field of professional activity but also his way of managing his self-business. It defines the “wages” or rather the income he needs and which he is able to identify at his level, according to his level of knowledge and skills.

A self-contractor can earn a living without having too much hindrance to his profession. Of course, competition exists: to the self-entrepreneur to know how to study the market and pull his pin out of the game.

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In order to determine the average income of a self-entrepreneur, many criteria must be taken into account. These make it possible to establish an overall and average picture.

How to determine self-business income?

The income of a self-contractor reflects the flexibility of self-contractor status. From the moment when the self-contractor selects his own services and negotiates them, he can get out of a kind of salary that will correspond to his ambitions.

To set the price of his services, any self-entrepreneur takes into account Essential criteria:

  • The desired standard of living;
  • A compensation objective;
  • A possible market research carried out prior to the establishment of the company;
  • The desired time to work, per week, per month, etc.
  • The desired leave, knowing that during the holidays, no income can be generated.

Self-contractor status is capped . This means that benefits can be present and regular and high income, any self-entrepreneur risks being removed from self-enterprise status if he exceeds the ceiling set by law.

What a self-entrepreneur earns

Studies were conducted to find out what was the monthly income of a self-entrepreneur. INSEE conducted its investigation. In 2015, France had no less than 800,000 self-entrepreneurs . Among these professionals the turnover was fairly uneven.

However, an average determined that the average “salary” of a self-contractor (i.e. net income after deduction of all expenses) was less than 450 euros per month . This amount provides important information, as it falls well below the poverty line.

Note: the average profit of a self-enterprise structure is less than 10 000 euros per year. Moreover, many self-entrepreneurs have a parallel wage activity, which would explain this very low figure.

Rapidly fluctuating revenues

For any self-business, the crucial question will be whether the chosen customers will be regular or whether the services are punctual . In the case of benefits only a self-contractor must, of course, manage its clientele and anticipate.

As a result, self-business income can fluctuate rapidly, depending on the needs of the moment. It is therefore difficult to say exactly how much a self-entrepreneur can earn, since his services vary, as well as their price.

Depending on the levels of experience, knowledge but also sectors of activity, turnover can be increased from single to double or triple. It is difficult to compare a regular self-contractor in the construction and construction sector, for example, to someone offering sewing services.

The expenses of the self contractor

Moreover, the income of a self-enterprise will not be the same in the first year of the professional practice and the 2nd year, then the third year.

Self-Entrepreneur Status provides great flexibility to which it fat fit. By being self-employed and depending on the sector of activity, expenses change from year to year. CCRE beneficiaries can also reduce their costs.

A large number of criteria are therefore to be studied before moving forward to produce the average income figures of a self-contractor.

Among the expenses and expenses to be counted :

  • Corporate property assessment;
  • Contribution to vocational training;
  • Income tax (various percentages depending on the situation);
  • ACCRE and social contributions;
  • The fee for consular chamber fees;
  • Bank fees related to the opening of a dedicated account.

In short, a self-contractor in full activity (without salary in main activity) can choose his way of life, services, rates and ambitions.

Many unknowns in the equation

In order to earn a living, he will constantly juggle the feasibility of professional and personal projects . The whole thing is to find a viable balance financially and in the long term.

Before embarking on the creation of a self-business, it may be wise to get advice from professionals, in order to know which direction to go and what goals to fix.