Many people dream of owning a business. The benefits of freedom and the opportunity to maximize profits often outweigh the responsibilities and risks that come with business ownership. While not everyone is ready to run a business, hundreds of thousands of people try every year.
According to statistics, 90% of startups fail. The key reasons are lack of funding, poor management, and market problems. Another common reason is the inability of an entrepreneur to handle the pressure associated with being a business owner.
If you are thinking about starting a business, it’s important to consider the pros and cons of doing so compared to getting (or staying on) an office job.
Difference #1: Growth Opportunities
When it comes to working in the office, you have a limited number of growth opportunities. Depending on your profession, you can climb for decades to reach the top of the career ladder.
Once it happens, there isn’t anywhere else to go. For some people, reaching the top is the goal of their life. When they get the dream position, they feel unsatisfied because there are no new goals to set in their niche. At that point, some of them experience anxiety and depression while others begin exploring other careers.
When you own a business, growth opportunities are endless. If you structure your work correctly, the sky is the limit. No matter what your niche is, there is always something you can improve.
If you are a successful business owner, you can always find a way to grow.
Difference #2: Stability
When you are working for a company, you get regular paychecks. For some people, especially those who have families, this is a sufficient incentive to stay in the office. The stability of getting regular payments once a month keeps potential entrepreneurs tied to their office desks.
When it comes to owning a business, regular paychecks could start coming after several years of hard work.
At the first stages, you are likely to be working for free. The lack of stability is something many people don’t think about. They hope that money will start coming soon. In reality, it could be much longer.
According to Orlando Business Broker, many entrepreneurs give up and decide to sell a business within the first year of work.
Difference #3: Responsibility
Owning a business comes with a variety of responsibilities. From paying salaries to employees to maintaining compliance with state and federal laws, the liability can be tough to bear. Being solely responsible could take a toll on business owners. That’s why many entrepreneurs settle for partnerships in order to share the burden.
When you work in an office, you are only responsible for doing your job well. You don’t have to think about paying office rent, buying equipment, extending licenses, and the like. Once you walk out the door after the workday is over, you can forget about whatever you’ve been doing until the next morning.
Business owners have a tough time forgetting about their responsibilities, which often keep them awake at night.
Difference #4: Control
Responsibilities and risks of owning a business come with a high degree of control. You have an opportunity to make choices whenever necessary instead of hoping that your boss makes the right one.
Full control of where your business goes gives entrepreneurs a sense of freedom, which they rarely agree to replace with a worry-free day job.
As a business owner, you can decide when, how, and where you want to work. That’s why many solopreneurs never change their status. Being responsible for employees can hinder your freedom.
Difference #5: Passion
When you decide to start a business, you want to do something you love. No matter how long it takes you to become successful, doing something that you feel passionate about is highly satisfying.
While working for a company can also satisfy some of your passions, the lack of control can make it less appealing.
You should keep in mind that you are in control of not only your work but also you should organize others’ working processes as well. People nowadays like working hybrid or remote and room occupancy sensors will help to monitor if your controlled office space is used efficiently or not.
The differences between working in a company and owning one are significant. If you decide that you are tired of your office job and want to start a business, take the time to weigh your options carefully.
Remember, at the first stages of entrepreneurship, you are likely to work around the clock without any visible gain.