Article brought to you by leading insurance provider Freedom Health Insurance
Most people, at some point in life, have wondered if they should leave the corporate world and go into business for themselves. Would it better to stick it out and be an employee at a company or venture out and be the boss? There are pros and cons of both worlds, of course, but we have narrowed down some of the top positives and negatives of working for yourself versus working for someone else’s company.
Money and healthcare.
If you’re an employee somewhere, you likely have a set salary or base commission rate that allows you to set a budget every month that you can rely on. The money is generally steady and when you leave that setting, you will likely leave a salary, pension, company health insurance package, and paid time off. When you’re self-employed, income can be up and down, especially when you first start out. Unless you leave a company and have a solid set of clients lined up ready to pay you, it will probably take a little time to get your name out there and create a buzz around your business. In addition, self-employment taxes and fees are usually high and will need to be factored in.
Furthermore, after full time employees complete a trial period at a new job, they are usually given company health insurance that can cover themselves and their family. When you are self-employed, you will need to come up with money to pay for your own health care, which is often expensive because there is no company pitching in to cover a portion of costs.
Having a flexible work environment is very desirable and something that a lot of young people entering the workforce nowadays are looking for. When you work for a company, there is probably a set schedule for the week and there is little room for flexible work hours. The beauty about branching out into self-employment really lies in the flexibility that it gives you. You can work early in the morning or late at night usually, you aren’t tied to an office, and you usually don’t have to answer to anyone except your clients. No one is thundering over you, watching the clock and expecting you to be back at your desk at a certain time.
The pros and cons of each direction are pretty clear. With a company, they assume most of the risk, and you have very minimal amount of risk. They have an already established infrastructure and all you have to do is walk in and do the job you were hired for. When you’re self-employed, you accept all the risk and will need to invest time and money to build the business how you want it. But if you are up for the challenge of building your own business from scratch, you have the potential to create a thriving company that allows you to pour your creative energy into it.
Individuals with a passion for entrepreneurship have something that not everyone is gifted with – the entrepreneurial spirit! So if you have that drive for success, branching out to become a business owner may be a good choice. It may take some sweat and hard work in the beginning, but if the product or service is in demand, there is a good chance of being successful. Whatever path you choose, remember that the grass is usually greener on the other side, so you really have to look at the whole picture and think critically about what is the best for you and your family.