Employee Vs. Entrepreneur

byChegu

144 followers

6 years ago

Welcome to my first blog post on WA!

Let’s look at the pros and cons of being an employee vs. entrepreneur.

Scalability

If you are an employee, all you do is trade your time for money. Time however, is limited. Therefore, your income potential is limited since all you have is 24 hours a day. Nonetheless, if you are an entrepreneur you have the opportunity to scale your business to any level you desire. While this may not be easy, it’s definitely possible.

Obsolescence

Working in a job is a concept that became a norm during the industrial age and the middle class as we know it today was born. However, we are now in the information age and working a day job is slowly but surely becoming outdated. This is exactly why we see a downward spiral in job opportunities as well as pay scales. The middle class is gradually disappearing and the gap between the rich and the poor is widening.

Nonetheless, if you wish to be independent and build something on your own, there are ample opportunities today that didn’t even remotely exist a couple of decades ago. You can get started with little to zero cost and make a lot more money than you ever could by doing a day job. This is especially thanks to the internet.

Freedom and Flexibility

If you are an employee, your life is essentially controlled by someone else. They decide what time you should come to work, what time you could leave, when you could take a vacation etc. Nevertheless if you are an entrepreneur you have much more control over your life since you are your own boss!

Moreover, an employee has to go to work in order to get paid. A business owner however, can create a system that can function with or without him which can provide true freedom; the freedom to do whatever he wants, whenever he wants!

Taxation

If you are in a jurisdiction where there is personal income tax, the government takes a big chunk of your pay slip before you get to even spend a dime! To make matters worse, personal income tax rates are generally much higher compared to corporate tax rates. If you are a business owner however, you are allowed to deduct most of your business expenses before you are required to pay tax.

Perpetuity

An employee can never hand his duties and responsibilities over to his children when it is time for him to retire. Conversely, a business owner can teach his business to his children and once they are adequately trained may extricate himself from the day to day operations of the business and spend time doing what truly matters to him.

These are some of the insights I could think of, off the top of my head. If you have any other valuable thoughts/insights please feel free to share!