There are so many reasons why becoming a business owner could benefit your life. But taking a leap of faith can be scary, especially when you’re unsure of which path to follow.
To decide if you should work or start a business you need to consider that business ownership requires drive, resilience and funding. Business ownership can be a risk, ad many businesses fail. If you prefer to forget about work when you get home and want a stable income, then being an employee is more suitable.
Your choice should always be based on what will make you the happiest in the long run. Let’s go through some of the factors around both in more detail.
This article will cover some of the key questions you should ask yourself before becoming an entrepreneur and highlight that both of these options are equally valid depending on what type of person you are.
How To Decide If You Should Work Or Start A Business
Businesses should not just be thought of as money-making schemes. Although they can be very financially rewarding, they need large amounts of energy, sacrifice, and love pumped into them in order to be successful. If money is your only motivation, then starting a business may not be the correct route for you.
According to various studies, only around 45% of businesses survive the first five years. So, if you aren’t willing to put the work in or aren’t passionate about your products, then your business will most likely fail. If this sounds like you then being an employee would be better for you.
Do I Need a Reliable Income?
When owning a business, a set income is not always guaranteed, especially while just starting out. Chances are that it is going to be awhile before you start generating income. If you need a reliable income every month, then being an employee is definitely for you.
However, when working for a boss, your income is always reliant on somebody else which gives you little control of your own finances. For instance, you can easily be let go and become unemployed at any point.
Equally, your salary is unlikely to go up drastically when working for someone else whereas when you own a business, you reap most of the financial rewards. This is a major advantage of starting a business because if it does well, you can earn more than if you are on a salary.
So, being an entrepreneur can be very fulfilling both personally and financially for those who wish to make a lot of money long term. Both options offer different financial considerations and it’s important to heavily consider this factor before making any decisions.
Can I Own A Business And Work At The Same Time?
Of course! Setting up a business on the side while you work for someone else is a great option. It can allow you to gain a steady income whilst your business is taking off. As Entrepreneur magazine puts it
“Because stepping out as an entrepreneur is risky and staying with your current job is safe, many potential entrepreneurs consider the idea of starting their own business while maintaining their full-time jobs.”
Once your business grows then you could work only for yourself or even continue working both for two steady streams of income. This is a great option which is becoming increasingly popular whether it be selling vintage clothes, baking, or gardening. The possibilities are endless.
The biggest issue is time. If you’re working full time, then you will need do do all your work on your business in the evenings and weekends. Not only do you risk becoming overworked, these are usually harder times to do business.
Is Owning A Business More Freeing Than An Office Job?
Many believe that being your own boss allows you to set your working hours and the types of projects that you complete day-to-day. Although this is true to an extent, in reality you are likely to work longer hours than those working average business hours.
As a business owner you are IT technician, website updater, marketer, book keeper, manager, the list goes on. Whereas working as an employee you usually have one set job role.
Working for yourself online can be freeing however because you can do this from anywhere as long as you have Wi-Fi. This gives you huge flexibility on your location and would allow you to move easily, taking your work with you rather than being tied to a job on site. If you want more freedom to travel then working for yourself could be very beneficial for you.
How Can Owning A Business Be A Negative Thing?
There are definite cons to owning a business. Many business owners find that they are constantly checking their phone and always thinking about work. This is very different to employees who can just go home and relax. Therefore, it’s important to think about how you want to spend your days in the long term.
You are responsible for your employees, clients, and partners so you are highly accountable for anything that goes wrong. There is also no holiday pay or pension schemes involved for owners, so if you want these types of rewards then a job will probably be more suitable for you.
Similarly, you may work all year with no earnings or even go backwards in your revenue, so owning a business can be a hard task when you need money. Obviously you hope that money will come in the future, but it may not and so this field comes with large financial risks.
Do You Have The Right Mindset And Personality To Start A Business?
To be a business owner you need confidence in yourself and what you are selling. This will benefit you both in building strong relationships and trust with clients as well as with your potential staff members. If you’re not a good leader or a confident people person who can give clear directions, then working under someone else’s command may be a better choice for you.
Likewise, if you crumble under pressure you may not be able to handle the stress of starting a business. Resilience and strong determination are required to make a successful business and keep it afloat in the long run. Things can go wrong or nowhere for months or years. Do you have the commitment to see it through?
Meeting the demands of clients every day requires a boss with high levels of adaptability and the skill to compromise with the requests of others. You must also be willing to evolve your work to pitch your business to markets as they change over time.
So, you must be very analytical and be able to investigate why things may be going wrong and figure out innovative solutions to these problems. This means you have to possess great attention to detail to keep on top of your business and ensure that everything runs smoothly and doesn’t spiral out of hand.
Both Being An Employee And Being A Business Owner Are Great Options
You can live a great life doing either of these options, but both have their pros and cons which need to be considered. Work takes up such a large chunk of our lives that we should always aim to enjoy it as much as possible.
You should try to do as much research as you can before making the jump in your career to start a business in order to be prepared for anything that may come your way.
There is no one size fits all and making the choice to work for someone else or yourself is very much up to your individual life goals, interests, and personality. Let us know in the comments your experiences with these types of work and which you think is better!
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