Job vs Business: Which is the Best Fit for You?

It’s common to hear from entrepreneurs and business enthusiasts:

• You should quit your day job
• Fire your boss
• Work for yourself
• Live the life you want
• Make your own decisions
• Take control of your own life
• and the list goes on and on…

While I’m an avid supporter of entrepreneurship, I can’t say it’s for everyone, and there’s nothing wrong with that. There are benefits to each: starting a business and having a job. Maybe in one season of your life, a job could work better for you and in another season of your life, a business could be better. In this post, I want to discuss the pros and cons of each: the employee and the entrepreneur. My goal is to help you decide which is best for you.

If you’d like to see this content in video, here it is for you:

Pros of a Job

• You have a chain of command and most often, one boss that gives you direction
• You typically get the chance to focus on a trade (accounting, marketing, administration, etc.)
• You don’t have the pressure on and off the clock
• You’re not held responsible for the jobs, income, and wellbeing of yourself, your family, and other people’s families
• The expectations of the marketplace require you to give less, whereas, many people expect business owners to give freebies, and much more…
• You can expect to work a set amount of time in exchange for a predictable amount of money
• There’s often perks like healthcare, IRA contributions and employer matches, education reimbursements, the opportunity to buy shares of the company, and travel or meal reimbursement
• Some jobs enable you to travel and have more location freedom
• Nowadays, you can work virtually or in an office
• You can perform a job that’s more capital intensive than what you could afford in your own business

Cons of a Job

• Alot of your work builds someone else’s balance sheet
• You usually told your schedule or your task requirements
• There’s often less schedule and location flexibility
• It’s more risky because you give lots of your time towards one customer–less diversification
• Increasing automation and globalization is making less and less job security
• Employers are less interested (than in previous generations) in paying higher wages now that they can hire offshore
• There is a glass ceiling on your income

Pros of Starting a Business

• After the business systems are established, you can expect more schedule flexibility
• Some businesses enable you location freedom
• With a business, you’re building your balance sheet, and you can pass the asset on for future generations
• Thru business, you can help lots of people by offering jobs and a means to support their families

• You can express your creativity thru business building
• Starting a business stimilates the economy
• You can mentor lots of people and promote positive growth in a unique way as an entrepreneur
• You become a professional solution-finder
• You can put systems in place over time to leverage your time more and have more freedom later
• It’s less common to have a glass ceiling on your income
• There’s lots of tax advantages
• You learn skills that can give you financial security and financial confidence
• You don’t have to worry about being fired

Cons of Starting a Business

• The business requires money upfront
• The business requires time up front
• Businesses start out like newborns where they’re heavily dependant, then as they’re trained, they become more and more independent
• You have several bosses: employees, customers, and your family
• You have to be very creative about cashflow management because many people are depending on you
• There are ebbs and flows with finances (especially when starting out)
• You might become very attached to watching your sales, checking on customers, or following up with employees, which can make it difficult to disconnect and take a break

My Recommendations if Your on the Fence

If you’re on the fence about whether business or entrepreneurship is best for you, I’d recommend you check out my free e-course on How to Start a Business in 10 Simple Steps. In the course, the first lesson is on self-evaluation, and really that’s the most important thing you need to do.

You should also check out two books:

• Living Forward by Michael Hyatt (on Amazon)
• The Seven Habits of Highly Effective People by Stephen Covey (Hardback or Audiobook on Amazon)

Inside, they each talk about the concept, “beginning with the end in mind” or life planning. Overall, you want to think about your relationship priorities, your financial priorities, your professional goals, and where you want all of your time to get you in this life. After you’ve evaluated your goals and where you want your final destination to be, it’ll be much easier to decide on the best vehicle to get you there: a job or a business.

Conclusion: Job vs. Business?

Hopefully this post was helpful for you. Leave your comments below…

What advantages did I miss for a job vs. starting a business? What is your advice for someone trying to decide which is best for them? What’s your experience with a job vs. starting a business?