There is a time in your life to feel about leaving your job and establishing a business. This could be a great idea because running your company has an advantage.
However, before you can do that, you need to have a great idea to solve the current market problems. The idea should also be cheap, like the way you buy Youtube subscribers for your business.
Most people prefer self-employment because of freedom. An advantage is that it can hold various rewards, unlike working for someone else. Before you can make a decision, read on.
- Risks
Risk is an essential factor to keep in mind. When you start a business, it will carry a considerable amount of risks. But the good thing, the decisions, and actions you make will influence your income. Perhaps you make a poor decision, which means you will miss the mortgage payment of skip dinner.
Investing a huge amount in your business means that your investment is at risk until it reaches maturity to withdraw your first contribution.
If you have a business, your income varies from one month to the other. On the other hand, there are risks associated with being an employee. This is because your livelihood will depend on the success of the company you’re employed. If the company fails, you lose your job too.
The fortunate thing is that you can depend on a regular paycheck. But your employer has to be healthy, and you’re performing satisfactory work.
- Working Hours
If you are an employee, most likely, you have to work between 40 – 45 hours a week. This is because you may have to take weekends off and include some weeks for vacation.
On the other hand, if you are to work for yourself by establishing a business, your personal and professional life will blur. Working for long hours could earn you more; therefore, you find yourself working even weekends.
- Responsibility
In a company, employees will focus on specific tasks that are relevant to their jobs. While performing these few tasks, they are already equipped with diverse skills.
On the other hand, you need to understand various things such as bookkeeping, sales, marketing, customer services, and computer technology when you are running your business.
In other words, even if you are a caterer, IT consultant, plumber, or accountant, you should learn new skills to run a business. You can choose to focus on these functions yourself the first time and then hire professionals when your business grows.
- Taxes
If you are employed, you receive your paychecks when deducted federal, state income taxes, social contributions, and medicare contributions. Where your employer pays these taxes, the company will remit these holdings together with a matching contribution to Social Security and Medicare.
On the other hand, if you are self-employed, you have to keep records of your business income, file estimated income taxes, personal income, and more. If you have to submit mandatory Social Security and Medicare contributions, you have to pay double of what you could have paid as an employee. In some cases, you may have to pay for sales taxes or others that fees you wouldn’t pay when employed.
- Considerations
Sometimes, running a business could be riskier than getting employed. However, when doing what you love gives you freedom while working.
Additionally, when you establish a business, you will successfully grow your business to meet your objectives. This will give you considerable financial rewards over time. That’s not something many employees will enjoy at work.
Conclusion
Establishing a business is better than getting employed. When you run a business, you have a chance to succeed, unlike when you’re an employee.
