Entrepreneurship vs. Employment: Why I Made the Leap

When I talk to people about franchise ownership, a common question I get is “What about the risk?” Particularly for people in high-paying, supposedly secure corporate jobs, entrepreneurship can seem like a dangerous unknown. I get it–I’ve been there. I made the leap from corporate executive to small-business leader to entrepreneur over the course of just a few years. It wasn’t easy. But then, worthwhile experiences rarely are.?As I’ve shared before, I greatly prefer entrepreneurship to employment. Here are the key reasons why.

I Make the Decisions

As a corporate executive, I had the illusion of control. I had a huge budget at my fingertips and the authority to make big decisions. But I was never the ultimate decision-maker. My authority was always second to a VP’s or the CEO’s. And even the CEO had to answer to the board and the shareholders. No matter how high-ranking, an employee always faces the risk that a downturn or some strategic shift?will eliminate their position–often with little to no advance notice.

As an entrepreneur, however, I have full access to every detail about the business. In a downturn, I’m not left in the dark, wondering how someone else’s decisions will affect my job security or the viability of the business. I have the authority to course-correct based on my knowledge and experience. And when things start looking up, I can move as quickly as I want to seize opportunities for recovery.

I Make My Own Raises

A steady income is a wonderful thing–until it isn’t. For employees, someone higher up the food chain can always hand down a pay cut or a layoff. Even in the most generous and profitable organizations, there’s always a cap on compensation. No company pays limitless bonuses or commissions. And the more secure a job is, the more rigid the pay structure tends to be. Highly stable government jobs, for instance, often have narrow pay ranges and limit raises to annual cost-of-living increases.

As an entrepreneur, however, I make my own raises. My willingness to work is the only limit on my pay. I have the freedom to?grow my business?as large as I want it to be. My ability to manage it is my only constraint. If I want to earn more, I simply keep expanding or looking for clients until I reach my goal.

I Reap the Rewards

Employees come to work every day, and the fruits of their labor fill the company bank accounts. When an employee invents a new product, solves a problem, or creates a more efficient process, the company reaps the long-term benefits of that innovation. In return, employees receive a small fraction of the wealth they create.

Do executives make a lot of money? Absolutely. But it’s no coincidence that the highest-paid among them receive much of their compensation in stock (i.e., an?ownership?share in the company). And think about the names you see on the?Forbes?billionaire list every year. They’re not employees–they’re business owners or the heirs of business owners. That’s because, while entrepreneurs do carry higher risk, the value we create?comes back to us. When we use our skills and knowledge to grow our businesses, the resulting profits fully belong to us.

I Have Flexibility

As an employee, I had to keep the schedule my employer required, regardless of the rank I held. Moving up the ladder bought me more freedom to organize my days, but my goals and responsibilities were still set by the company. I had to serve a company mission and follow company rules.

With entrepreneurship, however, I have full freedom to organize my schedule and direct my business. I have to do a minimum level of work to make my business successful, but I’ve chosen?an ownership model?that doesn’t require me to be at work every day. As long as my employees can reach me, I can work whenever and wherever suits me and my family. I have the freedom to choose a vision and strategy that interest me and goals that keep me engaged. Most importantly, the definition of success (and the work required to reach it) is up to me.

For some people, the relative steadiness and low risk of employment makes up for the constraints on income and professional freedom. I’m not one of those people. For me, the limitless income potential and ability to write my own story make up for the increased risk of entrepreneurship. If that sounds like you, and you’re feeling constrained by the limits of the corporate world,?schedule a call?with me. I can help you take the first step toward freedom.