When I have a look at most of the successful executives I have worked with well over the years and months and I also compare those to my self-employed friends who own their particular businesses, another thing becomes increasingly clear. After 20 plus years of time and effort, the self employed people are far better than those who had been employees.
The associates and friends who were “employees” are not accomplishing this good.
I have come to the conclusion, that if you can, you might be better off in the end if you own your own company.
Let me give you some examples. When I was at my late 20’s – early 30’s I became the youngest Director after which youngest Vice President at a high tech international company I struggled to obtain. During that time I had the pleasure of meeting two completely different entrepreneurs.
One entrepreneur is now so successful that he takes cruises about each alternate month. These are not low budget cruises with a space down close to the engine. He always books a suite with a balcony. He always takes family with him. Frequently they have four generations of family with him, and he will pay for it all. Whenever I was working as a Vice President, earning the large paycheck, this was guy could barely manage to go camping. Have a look at him now. He probably puts in certain hours every single day, if that.
I met one more entrepreneur at a party the night before a 10K race. Whenever it came time for you to account for a variety for a run towards the liquor store, all of the employees from inside the group pulled out their wallets, but not this guy. He pulled out a wad of cash as if you only see on TV. He owned a legitimate retail business. Years later I happened to be to understand this became quite normal for him.
Now, after owning his or her own business for 30 years, he just travels throughout the country as part of his RV. He could place in one or two hours just about every day to check on the business, read sales reports etc. But otherwise the guy can manage to live the life of luxury.
But How Did the Employees Do?
30 years later, when I look around, many of those whom I worked with throughout the time both of these entrepreneurs were getting their businesses off the ground can be unemployed or being forced to work long hard days. Imagine being 60 years old and still being required to place in 50 to 70 hours per week, doing work for another person.
Now you might say those people were only a few that good. Well, most were considered really good at what they did. Most had big pay checks, bonuses and stock options. Most had incomes that put them within the top ~ 5% from the US population. Most owned million dollar plus homes. They certainly had solid reputations and an increased standard of respect of the peers.
But over the last several years I have seen quite a few transferred, downsized, sold off, or otherwise terminated. This wasn’t just inside the US. I have seen it from inside the Asia and UK Pac at the same time.
On the flip side, the entrepreneurs which I have known are performing amazingly well. Their businesses have done well, they only have to operate a few hours every week. They usually have time for multiple vacations, starting new family, businesses etc.
The bottom line, the lesson to be learned is this: when you’re an employee, despite the fact that place your soul and heart in your work, right at the end during the day you may have nothing but your paycheck. You have nothing. Everything you had can disappear. The regular paycheck. The bonuses. The healthcare.
At the time you own your own private business, everything you need to do today adds to what you did yesterday. It keeps on adding exactly like interest on a savings account.
Sure you will encounter competition, challenges, obstacles etc. But at the end throughout the day, should you choose it right, your small business will start employed by you. Should you be really good, you are able to cut back on your own hours and the business will just keep running and the paycheck helps to keep flowing.
Not so when you are a worker. When you are everything, employee comes to a stop in case you do. In the event you don’t show up for work everyday, your paycheck stops.
At any time, all your good work is generally erased.
It just takes a change in management, a merger or acquisition, even a change in strategic direction.
Now this might seem like I’m whinning, but I am not. I’m just sharing this observation from my position near the top.
I can point to successful Vice President level folks in the UK, the USA, and Asia Pac that as a result no fault of one’s own found themselves being required to find another job.
Changing jobs is not all of that bad whenever you are inside your 30’s and even early 40’s, however it sucks if you are 50 or 60.
So what do I will suggest? I strongly suggest people try to look for techniques to become self employed.
Since it takes at least many years to find a new business to get profitable, I would recommend you begin your own business once you can. Don’t place it off.
Should you not yet really know what you ought to do, start saving 25% of the money now, to make certain that if it is time for you start your own business, you will find the resources to finance it.
The very last thing you should do is use somebody else’s money. Because once you’ve investors, you have one who can fire you and you may be back in which you started.
Credit to Michael