Employee or Entrepreneur?

Kekich Credo #25 - Working for someone else gives you little chance to make a fortune. By  owning your own business, you only have to be good to become wealthy.

An employee works for someone else.  There are pros and cons of being an employee.   Some of the pros include not having to worry about not getting paid next month.  You have employee benefits, and you can separate your life and work.  Working as an employee provides stability and the security of a steady income. 

A disadvantage of being an employee means you may have limited income.  An employee is often limited to their agreed salary or hourly rate. This income is capped and cannot be expanded without overtime or a pay increase. Limited income puts constraints on almost every part of life. 

Working for someone else gives you new opportunities to advance and grow in your career. You get the chance to work and learn from some very smart people.  You have the freedom to move on to another company when the opportunity comes.

Besides a limited income there are some other cons of being an employee. You don’t get to control your own destiny and you may not be able to fulfil your potential. Maybe you have a micromanaging boss.  Sometimes your job will change without your choice. Your schedule may not be fixed and you might not be paid what you are really worth. Often an employee becomes bored with the job.  When you are an employee you are making someone else rich and you are living someone else’s dreams. 

What benefits do you gain by being an entrepreneur and owning your own business?  As an entrepreneur you have the freedom to make your own decisions and the potential for creating wealth. A self-employed person is an independent contractor or a sole proprietor who reports self-employment income.  A person who is self-employed works for themself rather than working for an employer.

The main reason most people want to become their own boss is the freedom, satisfaction and flexibility it offers them.  In the short term an employee makes more money because starting a business requires you to walk away from a comfortable salary and invest a sizable amount of your capital into your business.  Losing access to that capital will have you making less money for the short-term future.  You might find it easier to work part time as an employee to support your basic needs as you launch into entrepreneurship.

There are some common challenges for self-employed professionals.  You usually have an inconsistent income.  Time not working is time not earning.  You may have difficulties separating your personal life from your professional life. You may have difficulties finding clients, leads and paying customers. You don’t have any paid leaves, no sick pay.  You have to do your own bookkeeping and you may have to pay more taxes. Success isn’t guaranteed. Working from home can lead to isolation and we all need a community for support.

So why is it better to work for yourself?  Working for yourself provides more job security than working as an employee in someone else’s business.  There is less risk, you have more control, and there are greater rewards.  You make the business decisions.  You diversify your income so your earnings don’t originate from a single source. 

There are many benefits of working for yourself.  You get to set your own hours.  You can accept or decline projects based on your interests and preferences.  You have the ability to do your job from home should you so choose. You are independent, you are not fixed on a certain role, there are no financial limits, success belongs to you alone, you decide how you plan your life, you decide how much you work and you learn incredibly much.

Are entrepreneurs better than employees?  Employees advance by continually expanding their skill set and by assuming as much responsibility as possible.  Entrepreneurs delegate.  They can turn down some opportunities and focus on the parts of the job only they can do.  Some employees are intimidated by people who are smarter than they are.  Entrepreneurs can hire them.

Are you dreaming about retirement?  Has your sleep become disrupted? If you are often complaining about your current job and constantly thinking of a new job, maybe you should start thinking about working for yourself.

Credo #25 says - By owning your own business, you only have to be good to become wealthy.

# living life abundantly      # published author