Do you want a comfortable career or are you passionate about making a difference to society or maybe you’re driven by money to start your own business?
Continue reading to learn if you are the next Richard Branson? There are over 32.5 million people working in the UK and 5 million self-employed workers, according to ONS. There is a rising number of people considering their long term career options and only you can answer where your career path lies. I have worked in paid employment and been running businesses for over 7 years and there are pro’s and con’s to both. There is no doubt the easy choice is to work for someone else (see pro’s and con’s below) and receive a guaranteed salary, annual leave and benefits. However, you may be frustrated with the lack of career progression and not having a say in strategic decisions.
Pro’s and Con’s of Paid Employment
- Guaranteed work
- Guaranteed salary
- Guaranteed annual leave
- Company benefits
- Are you just a number? Do you have a voice?
- Lack passion for the business
- Someone else makes the decisions
- Set hours
- Travel to same work place
- Salary is capped
- Lack of career progression
- Potential redundancy
Pro’s and Con’s starting own business
- Own boss
- Unlimited salary
- Passionate about industry
- Set working hours
- Make own decisions
- Make an impact
- Career progression
- Work where you want – home, office, holiday
- Can end up working longer hours
- Finding new business
- Can be lonely
- Salary can be up and down
- Daunting making decisions
- Get involved with aspects of the business you may not enjoy like accounting, HR, etc
What you want out of life will determine your decision making process. A good way to determine what you want is to ask yourself if you envisage working till retirement age or maybe taking up a hobby and retiring early. Most people would say retire early to have freedom to do what you want. If you are an employed worker you will need to make sure you start saving towards your pension from a young age to ensure you have enough money to retire early however life gets in the way and you may want the extra money to go on a holiday or a deposit for a house so retiring early becomes more difficult.
Starting your business and making a success of it has a huge impact on your retirement. I am experiencing in my own life that I can overpay into a pension from the profits of my business to give me the flexibility I want to retire early. You have lots more options running your own business, you may sell the business and use the proceeds to retire, you may want to continue working part time however want the proceeds of selling so you could offer a management buy out to your employees.
Do you want to be remembered for creating something or growing multiple businesses or even work solo and live a work life balance which keeps you happy?
If the answer is yes, then starting your own business is the option for you.
Setting up your own business is exciting however once the business is up and running and has customers that depend on you the landscape can change. Stress and pressure to deliver to your customers and to continue growing the business kicks in. If you feel like you are not good at handling stress and pressure I would think twice about starting a business and stay in paid employment.
There are lots more employers offering opportunities to work from home or providing you with share options which you can cash in whenever you want. There is a fine balance to be a paid employee or starting your own business.
The decision will be yours to make however let me leave you with a final dilemma – will you look back at life and regret not starting your own business? My thought process was that we only live once and that I would regret never having tried to run my own business, the worse case scenario is that the business would fail, and I could go back to paid employment. The decision is yours?
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