“Why don’t you just get a job?” A question will come from parents, friends and even strangers when thinking about starting your own business. It might be easier, sure. But when it comes to being an entrepreneur vs. employee, there are a lot of things to consider when thinking about different income paths.
Let’s take a look at the good and bad parts of both situations.
Entrepreneurship: Pros and Cons
Do you want to run your own business? Here are some things to keep in mind.
Why entrepreneurship is awesome?
- You get to be your own boss
- Flexible schedule
- Your earning potential is (possibly) limitless.
Why entrepreneurship is annoying?
- More work and less pay
- More stress
There are lots of reasons why many people are thinking about leaving a “regular” job to do their own thing. Getting started on your own business can be empowering. You get to create a great product or service that you (and hopefully your customers) will like. The product or service can also be created around your schedule.
“Morning people” can start their days working on something they love. “Night owls” can spend their evenings coming up with new business ideas. “Weekend warriors” can spend Saturday and Sundays getting ready to sell and market their product for the upcoming week.
Also, nobody is around to say that you can’t make more than a certain amount of money per week, monthly or annually. Your income is decided by you and your customers’ interest in your product.
That said, there are some disadvantages to working for yourself. Starting your own business takes a lot of work upfront. You don’t get paid until you get your first customer. Being an entrepreneur can be fun. But it’s also stressful when you consider that you’re making all the decisions on what product you’re selling, how to deliver your product, and how to promote your business.
Many entrepreneurs feel their hard work will pay off. But this type of work situation isn’t for everyone.
Employment: Pros and Cons
Working for someone else often gets a bad rap. But is that fair? Let’s take a look at the pros and cons of being an employee.
- Steady paycheck
- Possible employee perks (discounts on company’s products, paid time off, etc.)
- Less stress
- Your earning potential is usually limited
- Fixed schedule
- Tougher to find your interests/passion
We’ve all heard the horror stories of having a steady job. The past four decades gave us many movies, TV shows and songs about people who are unhappy at work.
But there are good reasons to consider a more traditional job. This includes temporary employment, like a summer job, or something long-term. For example, having a regular paycheck makes it easier to budget and manage your money. The company you work for might let you enjoy some perks, such as discounts (or even no charge) for their products. Company benefits might include paid time off, medical insurance coverage and other advantages.
Being an employee can be less stressful than being an entrepreneur, especially if you have a good boss and friendly coworkers.
There are some disadvantages with regular employment. Your earning potential is limited. Your boss and/or other company leaders determine what and when you will get paid. Company leaders also set your work schedule, which may or may not fit in with your school schedule, team/club activities and your other responsibilities.
Working for someone else can also make it harder to find the kind of work you enjoy doing. Your boss will tell you the specific tasks and activities he/she needs you to do.
Many people enjoy the work they do for a company or organization. But most of us know someone who dislikes, and even hates, their job. Finding a job you enjoy within an organization isn’t always easy.
If you want to earn more money while being employed, check out this article “30 Passive Income Ideas to Build Real Wealth” from The College Investor.
Final Thoughts on Being an Entrepreneur Vs. Employee
So, who’s better off: entrepreneurs or employees? There’s not an answer that applies to everyone. The best situation is the one that works best for you.
If you have your own business, don’t be afraid to take time to consider what you like and dislike about being an entrepreneur. If you still enjoy being your own boss, then continue moving forward with your business. And be sure to check out our great tips on how to be a successful entrepreneur.
But if you’re feeling a little burned out, you can take a break and try working for someone else for a while. No one has to be an entrepreneur or an employee forever.
Photo by NESA by Makers on Unsplash
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