Monday, March 23, 2015

Pros and Cons of Owning Your Business

Finding your true calling can be a journey, demanding consideration of various career paths. But the reward of aligning with your life's mission makes the exploration worthwhile. At times, just when you think you've landed the dream job, a different vision emerges. It might lead you towards self-employment, serving as an independent contractor, or starting a business. While the prospect of initiating your own enterprise is thrilling, there are essential realities to understand and embrace. Let's delve into the advantages and disadvantages of being employed versus being self-employed (running your own business).

Employment offers financial security. However, a stable business with expansive growth potential can yield unlimited income. An employee handles a portion of monthly remittances such as health insurance, taxes, and social security. In contrast, a self-employed individual manages both employee remittances and business income taxes. Employment provides better benefits like health, life, disability insurance, and retirement benefits, while a self-employed person needs to secure these independently. An employee typically doesn't bear costs beyond basic needs, whereas a self-employed individual manages business expenses and staffing costs, alongside initial start-up expenses.

Regarding work hours and income potential, self-employment presents advantages. A self-employed person isn't confined to specific work hours, unlike an employed individual. While an employee's income is often capped, a self-employed individual has limitless earning potential.

Both employed and self-employed individuals experience a mix of positive and negative aspects for personal and emotional growth. Employees often navigate workplace politics, while self-employed individuals might grapple with isolation and loneliness. Employees collaborate with others in a team setting, whereas self-employed individuals primarily operate alone. Self-motivation is crucial for the self-employed, whereas employed individuals derive motivation from structured expectations set by their team or boss.

Motivation plays a significant role in distinguishing between the employed and self-employed. When an employee misses targets or metrics, the company usually offers opportunities for correction while the salary remains. However, a self-employed person faces greater consequences, taking responsibility for failures and enduring financial repercussions.

In terms of sharing success, employees often celebrate accomplishments with their team, whereas the financial gains primarily benefit the employer. In contrast, self-employed individuals directly enjoy the fruits of their business successes.

Before delving into entrepreneurship, consider your desires. Do you prefer being part of a team and free from major operational decisions? Employment might be the choice for you. If you aspire to be a self-made individual, controlling your brand and business decisions, self-employment might be the path to consider. Ultimately, it's essential to align your decision with your personal goals.