Monday, March 23, 2015

Advantages and Disadvantages of Having Own Business

It’s time consuming to think a career path or changes to fit in. But, it’s worth the wait when you find your vision and mission in life. Sometimes, when you thought you’ve found the best job you dreamed for, another vision forms in mind. That vision is far different or similar than what you’re doing. At times, you find yourself thinking over and over again before deciding to become self-employed. You might envision yourself in serving people as an independent contractor or perhaps putting up a business. While it’s very exciting to start your own business, there are outcomes that whether you like it or not, you have to understand and accept what’s involved in. Now, let us distinguish the advantages and disadvantages of being employed and self-employed (having a business). 

Being employed has more advantages in the financial side. However, if the business stays stable and accessed unlimited growth, the potential income is unlimited as well. The employed person pays only the part of monthly remittances: health insurance, taxes, social security, and others. The self-employed person will take the burden of paying the part of remittances for the employee together with business income tax and personal tax. An employed person obtained better benefits from the company: health, life or disability insurances, and retirement benefits. But, a self-employed person will need to do more to gain more. Being employed doesn’t have costs beyond the basic needs. Unlike self-employed often takes business costs and staffing expenses. An employee doesn’t have a start up cost unlike a self-employed (business person). 

In terms of working hours and income potential, the self-employed person has more advantages. If a self-employed person doesn’t require hours to work, an employed person has working hours required. Income for an employee is limited, although receives bonuses but self-employed doesn’t have limits to gain. 

For emotional and personal growth, both employed and self-employed person have negative and positive sides. An employed person often deals with politics with the employer; while the self-employed person has to deal with seclusion and loneliness. Often, an employed person collaborates with others in the workplace while the self-employed person acts on his/her own. A self-employed person needs to be self-motivating while an employed person has to be structurally motivated because the team or the boss expects higher results. 

The big part between the employed and self-employed is motivation. If an employee failed the target or metrics, the company will give a chance for the employee to correct the mistakes, the employed still has a salary. But, a self-employed person may suffer on both faces. Aside from taking responsibility on failures, it raises the financial consequences. No sale, no gain. Failure on bidding, no cash flow equals great loss. 

For potential opportunity, employees may often share successes with the team, while in financial success; it is first taken by the employer. The self-employed may instantly enjoy the fruit of business successes.

Therefore, before deciding to engage into business, consider first your own desire. Would you like only to be a part of the team and free from operational business decisions? Then, go for employment. Or would you rather be a tycoon, your own person, and has own brand? Then, consider for self-employment. Again, back to basic, you need to determine or review your personal goals.