For most business owners, running their own company makes them feel excited and free . Running their own company gives them a profound sense of achievement. However, working for someone else’s company also has its perks, like job security, less financial concerns and stability.
If you’re considering going solo but are unsure if its the right lifestyle for you, then we’ve listed up some pros and cons of owning your own business vs working for someone else’s, to offer you a helping hand in making that choice.
Pros of owning your own business
1. Freedom at work- Who doesn’t want this !
We carried out survey recently with 450 small business owners, we discovered that 78% are happier owning their own business than they were in their previous job roles.
A huge reason for this is the freedom and independence which comes with running your own company. You call all the shots, you decide when you work, how long you work for, what work you take on and you can choose to decline work. This sense of control over everything you do is a huge reason why so many people are choosing to have an entrepreneurial lifestyle over working for someone else.
Although finances may be a struggle at first for most small businesses, if you are successful then you need to remember that you will be in control of that money. If you worked for someone else’s company, although you may gain bonuses and commission, you won’t be the one deciding where the money goes.
3. You can follow your passion and enjoy your work
Even if you land the job role of your dreams, if it’s for someone else’s company then there will be a set job description in place which may not be filled with everything that you’re passionate about. If you own your own business, then you have the option to hire people to do the jobs which you don’t want to do.
From the business survey which we carried out with 450 small business owners, 72% said they would never go back to working for someone else and prefer owning their own company. Which more than likely has a lot to do with them being able to work on what they’re passionate about and what they love.
Pros for working for someone else.
1. Job security.
Many people fantasise about running their own company, but when it comes down to it they’re often scared by the idea of not having a secure job and fixed monthly wage. It’s true, that when you run your own business you will have much less job security than when you work for someone else’s company, or at least until your business becomes a success and starts to generate a good income. For a lot of people who have families and mortgages, job security is incredibly important and is a huge reason why many people don’t take the plunge and set up their own business.
2. A clear work/life balance.
In a job role within somebody else’s company you will more than likely have much more fixed working times, such as you start at 9 and finish at 5. This will make it a lot easier for you to keep a good work/life balance and to not let your work take over your personal life. It also means your weekends are free from work and you can easily plan your holidays. When running your own business, especially in the first year or so, you may find that you don’t have as much free time as you did when working for someone else.
3. Social Interaction.
If you were to decide to go freelance or run your own business, then you may find that at first before you start to employ people, you are working predominantly alone which can feel isolating for some people. Whereas, when you work for an established company generally you will have a team, organised social events and be part of a community, which for many people is a huge bonus about going into work. .
Cons for owning your own business.
1. Financial Worries.
For a lot of people, one of the main concerns of launching and running your own business is the costs behind it. For many people, launching their own company will be their main source of income. So, you need to make sure you plan your finances carefully and set a realistic budget plan. There is a lot of financial help available to you which you may not be aware of, such as loans and grants, so make sure you do your research so you are aware of help that you can access.
Many of your financial concerns can be quashed by doing some simple research on what help is out there, what you need to do as a business financially and how to pull together a realistic budget plan.
2. Pressure and Stress.
It goes without saying, running your company will at times be highly pressurising and stressful, but this also means it will be incredibly satisfying when you gain those wins. If you’re the type of person who thrives from overcoming challenges then you will more than likely flourish as a business owner and, on some level, enjoy the stresses that comes with it.
Plus, it’s worth remembering that you will probably feel stress and pressure when working for somebody else’s company too – all jobs will naturally come with different forms of stresses, especially if they’re high paying roles.
3. Difficulty with work/life Balance.
When starting your own business, you may find that there are less boundaries between your home and work life , but that’s not necessarily a negative thing, and it’s something which can easily be managed.
Cons for working for someone else.
1. Long commute.
For many people, some of the best work opportunities are in the city which can often mean a long and exhausting commute to and from work. If you work for yourself, you can choose where you work and when.
2. Little control over your job role.
A con for many business owners when it comes to working for someone else’s business is that you have little control over the finances. For example, if you secure a huge deal for someone else’s company you may not reap the reward as you would if you ran your own business. Additionally, if you work for someone else’s company then you would rely on the overhead to give you promotions and pay rises, whereas, when you work for yourself you are the boss and decide what you should be taking home.
Although generally, if you work hard and bring in the results, you will gain pay rises when you work for someone’s company, if you run your own business you may find that you take a cut in your income especially for the first couple of years no matter how hard you work.
3. Working with clients or people you don’t want to work with.
If you run your own company, then you decide the clients you work for and who you employ. If you work for someone else’s company, then you more than likely won’t be calling the shots on everyone who’s employed or all the clients which you take on. However, if you gain a higher position in a company then it’s more likely that you will have an input over what clients you work with and what staff you hire.
‘‘I was very worried but I was in a horrible situation at work with a new boss and I hated going in every day and one day I realised I don’t have to do this . I want to enjoy what I do, who I am around and look forward to my work each day. I believe that a lot of the fear regarding the what ifs, the fear and questioning myself, kept me from starting my business even sooner than I did. When I finally decided to buckle down and jump in, what surprised me was that a lot of it was actually so much easier than I expected and I realised that much of my fear, stress and worry was completely unnecessary. “
Small Business Owner