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Business Ownership vs. Employee

Business Ownership vs. Employee graphic

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?

Business Ownership

  • 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.
  • Lifestyle
    • 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

Employee

  • 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

Looking For a New Tradition? Add a Fun Game!

Beautifully Wrapped Presents

Maybe you want to add something fun to a Christmas Eve party. Or, add a new game to your small gathering of friends. If you are looking to start a new tradition, here’s an idea for you!

The Basic Idea

There are 3 wrapped gifts for each person who is playing. These are neither serious gifts nor expensive.; they are items you could pick up at your local Dollar store, or even the free items at Harbor Freight. These could include individual festive tissue packets, Q-tips, pencils and erasers (for kids), notepads with the magnet on the back, deodorant, candles, tape measure, extension cord, etc. Collect them throughout the year (or, run out now to get them!  Why not? It’s a great idea!)

At Christmas time, get two gift cards and a $50 bill. These three things are hidden (separately) in the gifts before they are wrapped. At the gathering, pass out numbers (if there are 8 adults, 3 gifts each, so numbers 1-24) on little slips of paper. The numbers determine the order of picking and opening the gifts. So, in the appointed order (from 1 to 24), go around the room and people start selecting (shaking) and opening (carefully!) the gifts. 

Rules of the Game

Each gift can be stolen 3 times. So, if the person who draws #1 picks up a gift and opens it, and then person who draws #2 wants that gift, he or she can steal it. After the steal, the person who was stolen from goes back to the pile and picks out another gift. Start where you left off in the number order. But after a gift has been stolen 3 times, it’s dead. It can’t be taken again. 
 
You can also have a rule that you have to show people what you open, but you don’t have to take out and show the whole thing. You can be sneaky…. make people think you have something special so they steal it and you get to try again! (But, that can backfire if you have a masterful gift card/cash hider.)

How To Get Ready for the Game

1. Start collecting gifts as far in advance as possible. Anything goes. There’s the free stuff you might pick up at local fairs & festivals, chamber of commerce gatherings, conferences, and dollar store finds.  It’s mostly a bunch of practical, everyday-use kinds of items that are inexpensive but useful. 
 
2. Hide the gift cards (restaurants, movie tickets, etc.) in the items. You’ll get more ingenious as you do this! Often, the person who has the gift card or the cash doesn’t even know it!! Tip: Make a tiny slit in the Q-tips container and slide the $50 bill in. No one would see it. No one would find it. Also, make sure you write down where you’ve hidden the goods! With a couple dozen wrapped gifts, it’s easy to forget. 
 
3. Give yourself a good chunk of time to wrap the gifts. It may take 2-3 rolls of wrapping paper for this year’s game (so if you want it all to match (not that it has to), be sure to pick up a few rolls. Find a great audio book or holiday movie and enjoy wrapping!

It’s a fantastic Christmas tradition for older kids, you know, once they’re too big or too cool to sit on Santa’s lap or other younger family traditions. It would also make an awesome Christmas party game for an office or group of friends, or any other group of human beings who love a good time.

It you tried a new tradition last month, starting one this month will add to your joy!

Hope you love it! I’d love to hear how yours turned out!