I will start from the basic assumption that entrepreneurs start a business from one of these reasons:
- bigger income,
- more free time,
- being your own boss.
Ok, nothing wrong so far. Just that in order to obtain these 3 things as an entrepreneur, first you have to go in the opposite direction: smaller income, less free time, and more than one boss (as every customer is your boss). So there must be something wrong with the entrepreneurs mind! In the pursue of their dreams, the start by doing exactly the opposite and just hope they will make an 180 grades shift later!
First, at least in the first year, chances are that you will have less money than at your current job. Chances are that you are even going to invest your savings into it. And there is no telling if you are ever going to be able to make the U-turn!
Having more free time is an absolute non-sense, at least in the beginning. If you start small and probably without any significant outside investment, then, here we go, you will have long working hours, working weekends, and no holidays! Because entrepreneurs have more tasks and duties than any other employee! And even if you get to hire, then you will have sleepless night because you will have to provide the necessary income to be able to pay the employees! And there is no telling if you are ever going to be able to make the U-turn!
Being your own boss. Sure, you always get this one. You will be your own boss from day one, if… you make enough money to pay the bills, grow the business, tackle legal stuff, find customer, deliver products or services, have quality, make profit, hire the right person, invest wisely, cash in money, repay the loans, have an office, buy supplies, deal with upset customers, deal with leaving customers, deal with unfaithful suppliers and …. And still, even if you get to do all this, every customer will still be your boss. Till the day you are out! And there is no telling if you are ever going to be able to make the U-turn!
Now tell me. What would you call people that in order to follow their dreams are able to ignore the exact same dreams that pushed them going? They are entrepreneurs!
At least we’re not alone in our craziness!
TOP 5 REASONS TO HAVE A JOB
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Normally the literature in entrepreneur focused publications and websites is about the reasons to leave your job, not reasons to have a job. However, it is important to point out to aspiring entrepreneurs that the road to being a successful business owner is littered with the failures of those who did not quite understand what entrepreneurship is about. Being your own boss, while ideal, is not for everyone.
Many of us are meant to be employees, not business owners. This fact is supported by the reality that surrounds us on a daily basis. Look around you. How many people do you know who own a business versus those who simply work for someone else. Notwithstanding the many conspiracy theories about teaching people to be servants rather than leaders, the current employment paradigm is really fueled by the many benefits of being a worker.
The top five reasons to have a job instead of trying to be your own boss are: Low financial risk, health and wellness benefits, bigger earnings, lower stress, and free training.
Low Financial Risk
Having your own business is filled with risk and uncertainty. Even small operations must have some seed money to get started, and the risk of never recovering the investment is high. If you read any number of business publications you can easily corroborate the fact that most new businesses fail. Even if a young company makes it past the first year, the chances that it will go under within 5 years are great. By contrast, employees rarely invest any money into the firms that employ them. Of course, there may be some type of educational requirement (degree, certificate, etc), but such investments are more along the lines of self-improvement than a direct financial contribution to an employer.
An argument can be made about the vulnerability that workers have to being laid off. Employees certainly have a latent risk of being let go at any point in time, but the same is true for any business owner. If an entrepreneur loses a big account, the entire company can go under. Additionally, changes in market conditions, technology, and shifts in customer preferences can easily erode the viability of any business. In a sense, we are all employees. The only difference is whether the orders come form inside the organization or form the market place.
In the event of a lay off, the worker can virtually go to any company where his or her skills are needed. As long as employees have transferable skills, they will always find a job. Of course, the hardship, frustration, and time that it takes to find the best possible job should not be minimized. It takes hard work and persistence to get a good job. However, it is possible to make ends meet with almost any job. The same is not true for a business. If your company goes under and you lose your money and that of your investors, it can take significantly longer and an incredible amount of effort to start again.
Health And Wellness Benefits
Many employees will readily take less pay in exchange for top-level benefits. It is no secret that taking care of your health and responding to an illness is very expensive. As a worker, your employer may pay a sizable portion of your benefits so you can afford to have some type of insurance coverage. Entrepreneurs, on the other hand, may not carry any insurance in order to keep costs down.
A sole proprietor, even if covered by insurance, can also run into difficulties if stricken by an illness. With no one to tend to the company, the business will suffer loses that may be hard to recover. In other words, small companies depend greatly on the well being of their owners. This is not the case with employees. For most workers, a health matter is covered not only by insurance, but also paid time off. In many instances, the employee’s job is even guaranteed for a certain period of time.
Aside from health care, many companies also offer a host of free benefits designed to keep employees happy. Examples are daycare, tuition reimbursement, transportation subsidies, discounts on goods and services, and many others.
Bigger Earnings
Unlike Bill Gates, and many other super wealthy entrepreneurs, most business owners make as much money as an employee. Let’s take for example, an employee making $60,000/year. How hard does an entrepreneur need to work to make $60,000? More often than not, business owners have to work very hard to make the equivalent to a $60,000 salary and don’t get the ancillary benefits that employees do.
Most workers also make the same salary whether they work all day, or hardly contribute to the organization. It’s important to point out that mediocrity and laziness should not be tolerated in the workplace, but let’s not fool ourselves. Low caliber employees are everywhere and they get paid the same as top performers. Only in careers where individual accomplishment is tied to one’s earnings is it possible to weed out bad employees. An entrepreneur may be best served by being a top-performing employee in an arena that rewards results (i.e. sales), rather than take on all the risk of owning a company.
Lower Stress
A reality for entrepreneurs is the close relationship that their business and their personal lives share. Ownership of a business is a 24/7 endeavor that requires unwavering focus on the success of the company. While some people may thrive on the ambiguous and demanding nature of business ownership, not everyone can handle that level of intensity. Most employees have the luxury of leaving their job at their place of work, and can easily separate off duty activities from their job.
Even for employees who hate their jobs and wish their day ended 30 seconds after clocking in, the prospect of going through the day on “autopilot†is very attractive. Entrepreneurs, on the contrary, must always be alert to the needs of the company. Would you rather have to worry about your business while on vacation (Assuming the business allowed you to go anywhere), or would completely forgetting what you do for a living seem more appealing?
Most employees care about their work and will do their best while on duty, but they are not defined by their job. For workers, an occupation simply represents a source of income and an activity to fill the time between weekends and vacations, nothing more.
Free Training
Even after having read the above reasons to get a job instead of starting a company, some folks may decide that entrepreneurship is still the way to go. This section is for you.
Jobs are great places to get free training. By working at an established company and getting involved in as many projects as possible, a future entrepreneur can easily get a lot of real world experience. While it can be argued that experience is not necessary to start a business, it makes more sense to learn how things work on someone else’s time and money than your own.
Schools unfortunately teach students about commerce in a very general, academic fashion. Even with many institutions using business cases to illustrate important lessons, the overall question of how to make money in the real world is answered esoterically. Therefore, the best step for prospective entrepreneurs is to get the details form their employers. We are of course not talking about copying trade secrets or any other unethical behavior, but rather the fact that it is easier to learn by being directly involved in business transactions than by reading about them.