NPTI Florida knows that there are many ways to progress your career as a fitness trainer. You can elect to be a personal trainer independent contractor or choose to be employed. Either way, both are valid paths through which you can flourish career-wise while helping many people live a more healthy life.
So, which of the two should you select? Here is what you need to know about these two professional paths and what you should consider when selecting to take one or the other.
Becoming a Personal Trainer Independent Contractor
An independent contractor will do the same things all personal fitness trainers do. However, their relationship with their clients is different from that of a personal fitness trainer who is an employee. As an independent contractor, your clients will directly contract you to work for them.
In most cases, you may need to register a business to be able to enter into contractual agreements with your clients and for tax purposes. Independent contractors assume all the risks associated with the work they do, but at the same time, they benefit from all the benefits that accrue from their work.
Tax Implications
As an independent contractor, you will be liable to pay taxes on the income that you receive from your business. This tax will be on profit made, akin to the same tax that businesses pay for the income they receive. The burden of calculating a filing these taxes will be on you as well as an independent contractor.
Other taxes may apply depending on the tax regulations in your locality. Whatever remains as profit after deducting expenses and taxes goes directly to you as an independent contractor. If you are working in partnership with someone else as a shareholder in your business, then they too will be entitled to dividends from profits made.
Benefits of Being an Independent Contractor
One of the reasons why you would choose to be an independent contractor is the flexibility that this offers you. You get to select who you want to work with, and you have a lot more control over your time. At the same time, you have a greater potential to earn more money as an independent contractor as opposed to being employed. This is because as your business and profits grow, the more money you make.
You may also select to be an independent contractor as it gives you leeway to tailor your bringing the way you wish. For example, if you want to work with niche segments of the market such as seniors or professional athletes, you can go that way without having to get permission from anybody.
Drawbacks of Being an Independent Contractor
Just as there are numerous benefits to being an independent contractor, so too are there drawbacks. The first of these is that you have to assume responsibility for any failure and losses that are incurred. If your business fails, it could leave you bankrupt or personally liable for any debts that your business may have (depending on the kind of company that you have registered).
Being an independent contractor also increases the work that you have to do to market your company. To attract new clients, you’ll need to actively seek them out and may need to invest in marketing efforts to draw them in. Additionally, you’ll face increased administrative responsibilities, such as filing taxes and managing other aspects of your business.
Employed Fitness Trainer
An alternative to being an independent contractor is to be employed. Here, you work as an employee of an organization, and your responsibilities are defined by your employment contract. You will need to apply for a job and pass an interview to secure the position. Once this happens, your focus is solely on delivering on the terms of your contract and nothing more. While this offers a certain freedom, you are also limited in various ways as we shall explore.
Benefits Of Being Employed
One of the main benefits of being employed is that it allows you to focus on the key elements of your profession without having to worry about running a business or other administrative tasks. It also means that you are cushioned from any downturns that may occur as far as the business is concerned.
Depending on the agreed terms, your income will remain largely unaffected even if the business does not do as well over a certain period. Since you don’t have any capital invested in the business, being employed makes it easy for you to progress your career by simply finding another job with better prospects or one that is more challenging.
Drawbacks of Being Employed
The benefits of employment also come with certain limitations. The key one is that you do not get to fully enjoy the benefits of your hard work. If the business flourishes, your income is likely to remain unaffected.
As an employed fitness trainer, you may also lack the time flexibility that independent contractors enjoy. Your working time will probably be stipulated in your contract and any deviation from this would require that you seek permission from your employer.
Another drawback to employment is that your job may depend on factors that are beyond your control. For example, despite your good work, if your boss mismanages the business, you may find yourself out of a job.
Which One to Choose
The choice of whether to seek employment or be an independent contractor will be determined by your preferences as well as your circumstances. If you are at the beginning of your career and would like to focus on growing your technical skill set without the hassle of running a business, being employed might be a great way to achieve this. Employment also works if you do not have the capital to start your own business as employment does not require prior investment.
When To Be Self-Employed
If you would like to have greater control over your time and achieve a viable work/life balance, being an independent contractor might be for you. If you enjoy running a business and are not worried about assuming business risks, then working as an independent contractor might allow you to live to your fullest potential.
All said, becoming a personal trainer independent contractor or seeking employment can help you flourish. The choice of which pathway to take depends on your preferences and career goals. Getting your personal fitness training certification and education at NPTI Florida, a fully licensed and accredited institute guarantees that you get the skills to make it in both worlds.
If you would like to know more about our personal training education, contact us today.
