Are you a long-time employee who is contemplating quitting your job and going into business, or maybe you just graduated and you are wondering which of these two career paths you should take? Many people have contemplated going into business for themselves, but only a few actually go through with it. Granted, there are no right or wrong choices here; there are many things that you can only get by being a regular employee that you will not receive when you have your own business, and vice-versa.
To help you somehow make up your mind as to which choice is best, here are the pros and cons of being a corporate employee and being an entrepreneur:
Pros of being an employee:
1. Exposure flexibility.
The corporate sector is chock full of diversity. Employees are exposed to playing different roles within the department. In addition, corporate jobs are the best for increasing your professional contacts, and you also get proper training to master working there.
2. You get to socialize.
If you work in a corporate office that requires regular attendance, you get to meet other people every day, which fulfills your basic need to socialize with others. It also helps build your network when you collaborate on projects.
3. You have access to beneficial policies and cash bonuses.
Although you are not your own boss when you work in a corporate office, you still get paid and are recognized for your work. An employee’s salary might not receive regular increments, but there will always be a fixed amount deposited into your account every pay cut-off. In addition, employees are sometimes given performance bonuses when the company is doing well.
Cons of being an employee:
1. Healthy work spirits are almost a thing of the past.
Huge multinational corporations are constantly struggling to keep their positions and crawl their way to the top. What this means is that the family feeling between employees is now long gone. There are only a few companies that have a true healthy competitive spirit among the employees, in its place are filthy office politics; employees constantly trying to get a leg up on the competition.
2. Individual recognition for good work is few and far in between.
Both large and small companies face equal amounts of interaction. In large companies, there are so many employees that your singular voice might not even reach the higher-ups, so getting your ideas (regardless of how good they are) acknowledged can be quite hard. On the other hand, in the smaller companies, your ideas are easily heard, however, the additional workload that comes with you pushing through with your idea is hard to justify. Especially since you will not be getting a bigger paycheck because the company itself has a small budget.
3. Immediate decision-making is near impossible.
Even if you have an extraordinary idea for the company, but you will have to go through a lot of bureaucratic hoops to get it made. The entire decision-making process in corporate offices is so long and full of bureaucratic red tape that making even a simple decision takes an incredibly long time. Usually, by the time your idea gets to the higher-ups, by some circumstance, it will no longer be quite as viable as you first thought.
YOUR OWN BUSINESS:
Pros of having your own business:
1. You are your own boss.
Working for someone else can be restricting for some people. However, if you own your own business, you are the one in charge. You are free to make your own decisions for the company, you do not have to get the approval of anyone unless you want to of course. In addition, you do not have to worry about anyone else firing you, if anyone will be doing any firings, it will be you.
2. You will get paid according to how hard you work.
When you are an employee, no matter how hard you work, your salary usually stays the same. That is not the case when you are your own boss. When you work hard and you grow your business because of it, the amount of money you make will increase as well.
3. You will feel secure and satisfied mentally.
Your satisfaction is the driving force that pushes you to achieve more. When you can do what you have always wanted then you will also feel very satisfied. For instance, if your passion is to own your own bakery, you would not mind waking up in the wee hours preparing the dough for the morning crowd, your passion and enthusiasm provide you with more energy than you need. You will also be enthusiastic with your work and you will always strive to make your customers smile when they bite into the bread that you make. That in its own is more than enough of a reward.
Cons of having your own business:
1. It is risky.
There are many challenges involved in setting up your own business. One of the challenges is that starting your own business comes with the risk of you losing everything that you invested thus far because your business tanked. You are the one solely responsible for the success or failure of your own company, so if you cannot bear this heavy burden and you are not keen on taking a lot of risks, then starting your own business is not for you.
2. Huge financial investments.
To start any kind of business, you need to put up a starting capital, so that you have money to spend on planning and preparations. Not all people have enough money saved up to use as a capital for their own company. They often resort to getting a loan from their banks, and if the company fails, they will be left with a huge debt on their shoulders.
You need to have multiple backup plans in place to protect your assets and prevent yourself from getting burned financially. So, if something “bad” happens you can immediately get back on your feet.
3. There is no guarantee that you will make a lot of money.
Starting a business and having it flourish and grow exponentially right at the get-go is a pipe dream. The truth of the matter is that most businesses lose money for months after they started. And even after you get over that slump, the company will only make enough money to break even for months longer. It will take months or even years before your company can actually make money, and even longer for it to make you rich.
But don’t get me wrong, I’m not saying that you don’t have a chance to be successful. I’m only saying that in order to be financially free, you need to be ready to accept the time it takes and be ready for some hard work.
Of course, it’s not in every type of business, but you need to have it in mind that something like this might happen.
This is my comparison Job vs Your Own Business. What pros and cons do you find?