We've all seen it happen before – someone who starts a side hustle, then quits their day job and focus on the new business. It's not uncommon for people to do this to pursue more freedom and control over their own lives. But is it better than having both? Does one outweigh the other?
This post will explore what you can gain from starting your own company instead of jumping ship for a 9-5 gig. And which option might be right for you!
It may seem like an easy decision at first, but many factors go into making this choice – find out if it's worth giving up your current position or not!
Freedom and autonomy
Many people assume the difference between a 9-5 job and running your own business is that you have more freedom when you start your own company. In many ways, they aren't wrong!
For example, in 2015, the average full-time worker spent 47 hours per week in their office – that means around 8.4 hours a day! And the number of vacation days Americans get each year? 10.
Not to mention how many US citizens take a full two weeks off! This ‘mandatory' time in the cubicle is also known as ‘face time', where you have to show up even if there isn't anything left to do for your day. If there isn't anything to do, here are a few suggestions:
In short, you can do whatever you want! Many people start their own company, so they have the freedom to design their lives as they choose – but does it turn out that way? Or will you find yourself working just as much as before… But now only for one company instead of 50?
There's an enormous list of other pros and cons I could discuss when it comes to this debate. However, what makes or breaks this topic is your answer to this question:
Do you like the idea of having complete autonomy over your life?
Or would you prefer something more stable and structured without too much variance from day-to-day?
A good job can be worth the fine print
So, the next question becomes – is it worth giving up your current position for more autonomy?
If you're sick of being controlled by others and are done with the hierarchy at your company, then sure!
But before you jump ship to join the ranks of millions of other people who have left their job, here's one last thing to consider: Your new business will become a second boss. And this time, there isn't anyone else to blame! It's only you.
Don't believe me?
Here are some statistics from around 2020 regarding small business owners in America: Only 39% made over $50k per year. The average full-time business owner makes less than $50k per year (by the way, that's half what the average worker in America earns).
The main reason for this is that almost all small businesses fail within two years. And if you were to start your own company now? Your chances of failure would increase.
So think about it – do you want to be stuck with ALL the risk and ALL the stress? Or do you prefer having an actual safety net to fall back on if times get tough?
Join a start-up
Working alongside other people might sound like a much better deal than becoming an entrepreneur.
And in many cases, it is! Having someone else at your side who can support you through hardships and celebrate your wins makes the journey to success manageable.
Working for another company is also much more straightforward than starting up one of your own – that's why start-ups are often heralded as what you should aim for if you want to be your own boss!
There are just three minor problems with this.
1) Start-ups can fail quickly
It takes much more than a noble cause and passion for making something sustainable.
The truth is – it's complicated to create an app or product people want, so many never get off the ground. Think about how many apps there are now compared to four years ago. And now imagine how many out of those millions will exist in 2020?
It's not precisely easy knowing which will keep growing and which will fade away. This is not to say it's impossible, but getting your idea off the ground and generating enough momentum for it to succeed can be tricky.
Of course, this isn't necessarily a terrible thing – there are so many stories of young people who have created successful start-ups! But before you take the plunge, remember this: Many start-ups fail because they don't have enough funding.
And if you've ever had dreams of being paid generously for working hard. Let's say that money can disappear quickly when you're running on nothing more than passion.
2) There are no shortcuts or free lunches in business
Everyone wants an easier way to earn money through entrepreneurship!
This is why so many try their luck with Kickstarter or other crowd-funding companies. It sounds so easy – creates an account, asks people for money, and then use that money to earn more!
If only it were that simple. Here's the reality: The average business on Kickstarter has a 22% chance of failing.
And what about those few who do succeed?
They're very likely not able to generate the same amount of revenue on their own as they could have if they'd continued working for someone else. Some would prefer lower pay overtaking on the additional risk themselves!
So, is it worth chasing your dreams if doing so might lead you towards financial instability? Not sure yet? All right. There are some things you should consider before making this decision too.
Let's look at the third and final point:
3) It's challenging to get excited about a company you didn't help build
This problem is especially present if someone leaves their job to work for an already established brand.
When you're working for yourself, your motivation is guaranteed by passion alone! But when you're just another cog in the machine helping to drive success, that isn't down to you? That can be tough.
And believe me – it's even more complex than it sounds.
When I was still employed full-time, I knew this girl who always wanted her own business. So, after saving up enough money, she left her job and started selling hair extensions online – nothing big or complicated, but enough to make a decent amount of money.
But within a few months, she started complaining about how much she hated working from home!
What's more, she said it wasn't as simple as people made it sound.
While I don't think her story is necessarily representative of all start-ups, it is a perfect example of what you have to sacrifice if you want to be your boss.
What should you do?
So next time you're thinking about becoming an entrepreneur or giving up on a job before seeing things through – remember there's a dark side to being the master of your destiny. Think long and hard before making this decision because there will be no turning back once you do!
I'm not saying that everyone should work for someone else, but rather that it shouldn't come as a surprise if you do! And even if it does work out, don't expect your life to improve overnight – you'll have to work extremely hard to get things done.
But who am I kidding?
Of course, you'll love creating something of your own! You need to be smart enough not to lose yourself in the process.
Supposedly there are two types of people in this world: Those who want to be rich and those who want to live fulfilling lives. Everyone wants both, but let's face it – most will get neither. Life is short – enjoy every second without losing sight of what you're working for.
If money isn't the only reward you're going after, what other reasons could there be for leaving your job?
What are your thoughts on making money online?
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About Robert K Florkowski
I am a self-made entrepreneur and life coach with a mission to exemplify what is possible for anyone who commits their life to mastery.
I'm passionate about living my best life and helping others do the same.
My motto is: If it wasn't hard then everyone could do it, which means that success comes through dedication and commitment – not just willingness or ability.
I believe we can all live our dreams if we commit ourselves fully to mastering what matters most: Ourselves!
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