One of the most critical questions one faces while charting his career is whether to find a job in a company or start his own business. Both choices have their benefits and drawbacks, and one must consider the tradeoff of each before making the decision. Below are the advantages and disadvantages of working as an employee in an organization and running a business.
Liability
Working as an employee in someone’s company means the liability on his shoulder is limited. Although he will lose his job if the performance continuously declines, he does not have to suffer financial burdens due to the decreasing profitability of the company. Assume the company is struggling with a supplier and cannot make considerable profits; the employee’s monthly wage is unaffected. All he must do is continue working hard, giving the best of his efforts.
However, the liability of an entrepreneur is unlimited. Every loss and expense incurred directly impacts the entrepreneur; therefore, there is constant pressure to generate profits and ensure the venture’s sustainability. Similarly, an increase in profitability is hardly enjoyed by an employee because the salary remains the same with specific bonuses. Hence, the motivation to perform above and beyond expectations is often lacking. Conversely, an entrepreneur enjoys company profits, which motivate him to work tirelessly every day.
Shared Success
An employee works to help the company enhance its profitability, foster customer loyalty, and take the organization to new heights of success. An employee’s focus is to help the company prosper, while an entrepreneur does the same for himself and his company. An entrepreneur can stand out in the crowd with his work and identity, but an employee cannot claim the company’s success as it is credited to the company, not to a team or an individual. An employee is one of the several reasons behind the success, but an entrepreneur is often the sole face of the venture’s success.
Interest and Motivation
Often, people suffer from work stress because they spend their entire day at work trying their best to perform and make ends meet. Unfortunately, many people work in different organizations they cannot relate to or are interested in. For example, think of a creative marketer who must sell a product he does not find interesting. His skills, abilities, and creativity are wasted as he must work with products he dislikes. Therefore, his frustration and stress are not a surprise. If this situation is like yours, you can start a business and work creatively with your desired products. For example, starting a small café or restaurant would be a wonderful choice if someone loves food. If someone is a painter or interested in art, having an art gallery would be a viable option. Entrepreneurship allows one to practice his interests and enjoy the work.
Authority
An entrepreneur is his boss and does not have to report to a superior authority. Hence, entrepreneurship allows one to work freely and under one’s authority. If you cannot wake up early and struggle to follow the rules, chances are you will have a tough time working within the confines of a traditional working structure. But, if you are an entrepreneur, you enjoy the freedom of working whenever and however you like. Similarly, an employee must abide by the company’s values, policies, traditions, and rules, which may contradict his personal beliefs and values. It leads to conflicts and often demotivates the employee. However, entrepreneurship lets one choose the vision, values, and policies he wants to live and work by.
Finances
Employees do not have to worry about the finances required to fund a project. The company provides all the necessary resources to implement an idea efficiently, but an entrepreneur must look after all the aspects, which is stressful and demands tireless effort. Also, entrepreneurship is about risk-taking, while employment is about security and safety.
When determining which option is best, one must look at both options and choose the one that complements his goals and personality.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
