There are advantages and disadvantages both
to working for someone else and in working for yourself.
When you work for someone else, you do not have to be making as many decisions about what you should be doing, because the big decisions are decided for you. Usually when you work for someone else, a great advantage is receiving a regular paycheck. Whether business is good or poor, you know you can count on a certain amount of money each pay period and you can budget accordingly. This takes a lot of stress out of your life. You may also have the advantages of working regular hours, and may be able to leave at a certain time and not worry about work until the next day.
In general, when you work for someone else, there is less responsibility. But there are also aggravations to working for someone else. You don’t get to decide how things will be, you need to please your employer, and the company can end your employment at any time.
When you are self-employed, your income is directly related to the success of your business. Most businesses take some time, perhaps a few years, before they start turning a profit. There may be tremendous profits, or not. Without incorporation, there may even be debt. There will not be anyone to pass the big problems to, but must resolve them yourself. Your job typically will not end at a certain time. When things need to get done, you must do it. There will be stress. But the potential advantages of being self-employed are tremendous: wealth, pride, independence, and satisfaction.
Four reasons are common for self-employment.
- Many people choose self-employment when they cannot find other employment.
- When no one will hire you, you can always work for yourself and try to make it profitable.
- Many successful businesses begin this way.
- Some people choose self-employment because they desire to get rich.
Your chance of accumulating wealth is greater if you own your own business. Some people start their own companies in the same kind of business where they have previously been employed. They like their work, but they want to be able to do it their own way, and do it better. And some individuals have a vision. They dream of being able to do the kind of work they wish at last, or wish to help others.