Being an employee vs. entrepreneur
Our deep fear of the unknown scares us
Our society and education system trained us to be employees
Uncertainty of what being an entrepreneur entail make us feel uneasy
To transform from employee to entrepreneurs start with a mindset change
Employees work for others
Entrepreneurs build and run businesses
Working for others provides a steady income and scoped job responsibility.
Being an entrepreneur offers more control, flexibility, and potential for financial gain.
We will explore the differences between being an employee vs. entrepreneur.
Being an employee
When you work for others, you are an employee of a company or organization. You work to make money, and your salary depends on your role, experience, and other factors. You may have set working hours, a clear job description, and limited control over your work.
Advantages:
Steady income: Working for others provides a stable income with a set salary, benefits, and other perks.
Limited job responsibility: As an employee, you have a specific role and responsibilities. Your employer runs the business. You are not accountable for the success or failure of the business.
Clear work schedule: In many jobs, you have a clear work schedule, which helps you maintain a work-life balance.
Disadvantages:
Limited control: As an employee, you have limited control over the work you do and the decisions made. You have no control how long you will be on the payroll. You can also lose your job tomorrow.
Limited career growth: There are opportunities to advance your career as an employee. But the size and structure of the company may limit your career growth.
Limited financial gain: Your employer determines your salary, benefits, bonus and promotions. If you do not own equity in the company, employees have limited financial gain potential.
Being an entrepreneur
When you are an entrepreneur, you build and run a business. You have full control over the vision, strategy, and direction of your business. You can choose your own working hours, take more risks, and potentially earn more money.
Advantages:
Control: As an entrepreneur, you have full control. You can set the vision, strategy and direction of your business. You can make your own decisions, determine your own working hours, and choose whom you work with.
Flexibility: Starting a business allows for more flexibility. You can decide on your work schedule, work from the office or from home, and make your own rules. You can also make decisions without going through hierarchy for approvals.
Potential for financial gain: As a business owner, you have the potential to earn more money compared to working for others. You can set your own pricing and have control over the profitability of the business. If the business does well, your equity value in the business grows. When you are ready, you can sell the equity in your business at multiples of earnings.
Disadvantages:
Risk: Starting and running a business involves a certain level of risk. There is no guarantee of success, and the initial investment may be significant. That is why some investors decide to buy a good business and then build it to greater success.
Responsibility: As a business owner, you are fully responsible for the success or failure of the business. This can lead to increased stress and pressure. Some savvy business owners prefer to be strategic and not stress about operations. So, they hire a General Manager / CEO to run the business for them. The owner-manager now transforms into owner-investor
Work-life balance: Running a business can be time consuming for an owner-manager type of entrepreneur. But it does not have to be. Hire a General Manager / CEO, and let the person run the daily operations. Work-life balance is better for the transformed owner-investors.
Would you be an entrepreneur?
The right choice depends on your personal goals, values, and priorities.
And we can always hustle on the side while working full time as an employee.
Stay inspired!
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