The word ‘entrepreneur’ has exploded in recent times. You probably know a few friends who dropped out of school and started a business. You may also know some people who quit their jobs for business.
Many people in this situation tend to wonder if starting and running a business is good for them or not.
If you are in the same situation, then read on as we explore some pros and cons of having your own business and working at a job. We’re going to divide the various features of both into responsibilities and payoffs so it is easier to decide rationally.
Owning a business:
Operating a business puts you at the crossroads of decisions and responsibilities. As a business owner, it is your responsibility to look after the various needs of your business – This includes your employees and subordinates also.
- Vision and execution – Owning a business means that you are responsible for the vision of the business. As the business owner and probably being the first person to execute your idea, you have to be able to think clearly in the long-term and short-term for the benefit of your business and customers alike.
- Sustenance and operation – If you are the business owner and you are working on your idea, then it is your responsibility to put together effective systems and strategies that ensure that your business keeps running and stays profitable in the long-run.
- Recruitment and resource management – As the owner of your business, you will also realize that you cannot do everything on your own. You are responsible for hiring and firing staff as required and your decision relies on the quality of your judgment. You are also responsible for effectively managing your resources to help your business grow.
- Decision making – Making decisions is your full-time job if you run a business. As the decision making authority, your choices will reflect upon the performance of your business. Whether it is hiring employees or deciding what your social media strategy should be, it is for you to think about.
- Growth strategy – If you work on an idea and turn it into a business, then it must have potential to be scaled. Scalability of a business is one of the most important factors to consider before you even start practically working on your idea. As a business owner, you have to plan and implement a growth strategy that can take your business to the next level.
- Liabilities – As the owner of the business you are responsible for capital raising and investment in the business. Any liabilities owned by the business are yours and in case of loans and payments you are personally responsible for their settlement.
The payoffs and benefits of having your own business are many. But it all depends on how well your business is performing. If things aren’t going well with the business, you most certainly feel the stress of it all as an owner. If your business is doing good, your quality of life will be good too.
- Unlimited earning potential – Since the business is your own idea, it is largely up to you how much you want to scale your business and how much you want to earn from it. The earning potential is unlimited in the sense that you always are in control of how much effort and thought you put in to your goals.
- Lifestyle transformation – Running a business will change your lifestyle completely, professionally and personally. You are in charge of your destiny and you can choose how you want to achieve your goals. You can decide what working times you would like and you have the flexibility to adjust your routine according to your requirements.
- Independence – Your business grants you independence in a sense that you are free to make whatever decisions you like. As long as you keep good intentions and make no intentional bad decisions and don’t take unnecessary risks your business will take your life somewhere good.
- Continuous growth – Running a business is an opportunity to grow and thrive as your business grows along with you. Steady growth of your business brings about some pleasant changes in your life. Since the business is always growing and you will encounter many opportunities to diversify your business, you have the ability to continuously expand and grow your businesses.
- Opportunities – Over the course of your professional business life you will encounter several opportunities which let you diversify your interests and explore new possibilities. You can climb from one ladder to another. If you think you have the required investment of time and capital available, then you can also think about trying your hands at a different business or even industry.
Working as an employee:
Employees also have certain responsibilities towards the organization they work for which is their bread and butter. However, employees have their responsibilities limited to their job description.
- Schedule oriented routine – As an employee you work for someone else. This means you have to conform to the schedule and timings they give you. This works out for people who have a certain portion of their day to dedicate to work and can use a constant schedule.
- Conformity – As an employee you have to conform to the rules and regulations of the organization you work for. There are certain tasks assigned to you that you have to perform regardless of your preferences. Your employer expects you to be able to work according to their requirements.
- Thinking for the organization – This is not a responsibility but a good employee understands the importance of thinking for your organization. A good employee will be proactive in making decisions within his authority. Offer your energy and efforts to the organization and think of ways you can benefit your employer.
Employment has its own unique perks and they are very suitable for people who are looking for a certain thing in their life. Climbing the corporate ladder is easy as long as you are willing to go the extra mile for the organization you work for.
- Regular and timely cash flow – This is one big benefit of working as an employee. You work all month knowing how much money you can expect to receive at the end of the month. This means that you can plan your savings and expenses accordingly without the uncertainty of a fluctuating income.
- Limited responsibility – Working as an employee means that you are responsible for a certain amount of things and they are considered your job. Your responsibility is limited to your job and you are not ‘required’ to do any extra effort.
- Company provided benefits – Employer have to provide their employees with certain amenities such as healthcare or insurance. Employees can rest easy that their health will be taken care of by their employer. Business owners, on the other hand, have to plan these expenses and arrange funds on their own.
- Fixed work timings – A great benefit of being an employee is that you are expected to work for a fixed amount of hours. Your work starts at a particular time and you get off at a certain time every day. This makes it easier for people with other responsibilities to manage and utilize their time.
- Task oriented scenario – As an employee, most of your job is task oriented. This means that as long as you do what you are expected and told to do, you will get immediate returns from it such as wages or salary.
After going through all these points it should be clear which one is the right choice for you. If confusion still persists, then think about what you should and can do in your position. If you already have too many
responsibilities, then you can consider working as an employee till you can invest in a long-term idea.
Otherwise if you think you can sustain the first few years of struggle with your business and manage your life accordingly and find an idea worth working on, then you can think about investing yourself in business.