What are some of the differences between business ownership and a job?
Below, is a comparison of the differences of business ownership and being an employee. Only you can decide which one is right for you! Is it your time?
- You are the last one fired
- You see problems coming so you have a chance to react
- Business Owners are leaders, so you have to like leading and mentoring others!
- Not every day is perfect, but you do have the ability to adjust and control the outcome.
- Three income streams:
- Paid a salary
- Tax savings
- When you pay $100 for a cell phone, you have to have $150 in income to pay for that. But when you own a business, you can deduct all or a portion of those expense to the business.
- A person that was making $100k with a job can have the same or a better lifestyle making $70k with a business for this reason.
- Growth equity
- You are paid a sum multiple times your investment when you sell. For example, if we have businesses that cost $50k up front, but sell it in 7 years for $1.2 million, that’s 24 times your original investment!
- You get a piece of the growth of the company you contributed to.
- Wealth accumulation when you sell that business.
- Free to make your own schedule
- Free to take vacations whenever you want
- Freedom to take care of your family needs as they arise
- Unlimited potential on salary and earnings, you can take an owner’s draw and pay less taxes
- Opportunity to be paid for passively running the business once it is in motion
- You make the rules
- There is no boss to report to; you are the boss
- Able to wear the clothing that is comfortable to you
- Pride of ownership
- You choose the clients you want to work with
- Sphere of influence is different; you can make and meet prominent figures as a result of your mutual business
- Passion of what you do help the economy by creating jobs
- Steady paycheck as long as you hold the job.
- Health benefits are offered by some employers.
- The risk you run is minimal, but time is not normally on your side. See below.
- Paid a salary.
- Unfortunately, you can be fired or laid off at any time! There usually is no warning or chance to react in these situations.
- As you age, you become less valuable to the company.
- Newest employees are the first to be let go.
- In the past, employees that were 55 or above saw their income continue to grow. Now. it grows until age 40.
- So statistically, there is a greater likelihood that your income will go down as you age instead of up, and isn’t that the most important time for it to be high, when you are preparing for retirement?
- All statistics show not only will you have less job security, but your income will actually go down. For example: You were with your old company for 10 years and you got laid off. At the new company, where do you think you will be in the list when they need to do layoffs?
- Pay is always the same no matter how many hours you put in on the job!
- Always get paid for work done, can never be passive income.
- You always have to consider where your employer is located and if it’s a reasonable distance to your home
- You are a subordinate.
- Must follow dress codes.
Please see article on how USA’s present employment is on par with the Great Recession of 2008. https://www.bbc.com/worklife/article/20200327-unemployment-during-coronavirus-the-psychology-of-job-loss
Check out this video of how you can purchase a franchise and still afford lunch!
For more information on smart business ownership, contact Gayle at 281.642.8280 or Gayle@RightFranchising.com