Starting a Business vs. Working as an Employee
Across the US there are persons deciding if they should stop from their current careers to start a new business, or stay working as an employee within a company. While it is easy to image the potential rewards of being your own boss, there are major considerations that should go into your decision. This is because there are pros and cons associated with both owning your own business and working for an employer. To compare and contrast these two paths, one must recognize differences between them. These include the “freedom” that a job allows, different income levels, and heavy taxing differences between them. The first thing most people think of when they consider starting their own business is the freedom it will bring. Ads of manufacturers trying to notice and get entrepreneurs to sell their products post signs reading, “BE YOUR OWN BOSS,” and “ANSWER TO NO ONE BUT YOURSELF.” They do this for a reason: it’s powerful and effective. The freedom appeals to everyone who has ever worked under a boss and had to follow orders they would not otherwise have done. Working in an existing firm does not afford this luxury. While there can be different levels of “freedom” for each position on the corporate ladder, you can never truly claim the “freedom” entrepreneurs live by. To leave the topic of job “freedom” here would be irresponsible. This is because despite having unlimited “freedom” to manage a company the way a business owner chooses, it is not in their best interest to take unlimited vacations and live the life of total “freedom.” The reality is, business owner’s work hard, long hours, especially during the initial start-up phase of their company. The reason is because their salary depends on their accomplishments. What they accomplish translates into revenue dollars for the company, which then becomes their salary. Many people find this aspect of owning a business a deterrent. Working...
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