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Alright, I'm curious. How many of you feel it is better to work for someone or own your own business. Of coarse it varys for each individual so which is best for you?
Some of the obvious pros for working for someone else is when you leave, that's it. It is not your problem anymore. No upfront money to put into it either. Now owning your own biz allows you flexibility to do what you want and how you want it. And some love not answering to anyone else.
I watched my father growing up climb the corporate ladder. At his peak he did very well. Then starting his own company with seven different properties. Also did very well at the peak. Eventually got to be too much for him and he sold them all. Employee problems, insurance after hurricanes, ever changing competition, ect. Now he's back working for someone. I am thinking about an offer to partner with someone and I am completley undecieded. The pros and cons are like 50/50 in my mind right now .
Well you got the working for someone else part right with come quitting time forget it and go home.
one would be inclined to believe that running your own business is the way to go but it's not that easy.
pro's of your own business, unlimited income potential naturally dependant upon success & devotion to it.
doing something you enjoy not hate
cons
lots of long hours
you’re the boss so everything falls on your shoulders
you'll let the business run you instead of running the business
employee problems
red tape
taxes
no vacations or few
lots of other stuff could be added but you get the idea.
either way no matter if it's working for someone or your own business you still answer to someone, if not the boss then your clients/customers.
there's no doing what you want, when you want, how you want, your cust/clients will dictate that in a way.
when things go wrong and they need to be set right the next day your in for a very long night.
but if your making good money, got employees to do some of it then all the better, but a fresh business is lots of hard work, ups & downs mostly down, lots of hmmmmm now what do I do.
I’m all for individual small business but don't let someone tell you it's easy nothing to it, you'll make millions , not so.
be very careful with partners deals & buddy deals, there somewhat risky & not a real good idea
"be very careful with partners deals & buddy deals, there somewhat risky & not a real good idea"
Will echo this warning. Partners start off on the same page, but it doesn't take long for differences in personalities and visions to create problems. What happens if you can't buy out your partner? Would you be willing to sell and lose everything you've worked for?
Be prepared to compromise - often. And forget about a 50/50 division of responsibilities. It's not going to happen. Could you live with it if your partner was not pulling his/her share of the weight?
There doesn't seem to be a lot of partnership law specialists out there, but find one and get everything in writing, ESPECIALLY the manner in which the partnership would be dissolved. I would not include an arbitration clause, but that's just me.
Not trying to throw cold water on any plans you may have. I just think that informed decisions are the best ones.
ROTFLMAO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! As the other poster said, even business owners HAVE to answer to someone. As a business owner we have probably MORE people to answer to than the guy that works for someone else. Not just customers/clients but our vendors, CPA, banker, employees (yes, they want answers from the boss), insurance underwriters, government regulatory agencies, etc. When working for someone else there is always someone higher up that has to ultimately answer to problems. When you own the business YOU are the ONE and ONLY w/ the answers, or at least everyone thinks you do.
The other laughable argument that comes from those that don't really understand the whole picture of owning ones own business is the fallacy that we set our own hours. HA!!!!!!!! So I DON'T have to answer the phone at 2 am if one of my customers has an emergency? You better believe we answer those calls if I want to keep them as a loyal and good paying customer. The owner just starting out works long hard hours doing things like paperwork after hours and on weekends so he/she can tend to customers/clients during normal business hours. This is the one thing that can tick me off whenever we have employees that complain sometime about us having something. I'm the one that sent my 6 month old baby to stay w/ grandparents for days at a time so that we could work 12-14 hour days, 7 days a week getting things going and off and running. We are the ones that did not take vacations for years because we had no one else that could do our job. In the beginning it is not all fun and games and even after a company grows and becomes very successful there are growing pains and you just pick up more of different responsibilities.
I aluded to the other "problem" that can arise from being the "boss" or owner. Having something that makes your employees jealous. I wish I could say it ain't so but it is true. It really does not bother me at all if someone has a newer car/house or whatever, hey, they are the ones paying for it. But when your "the boss" and you hear the snide comments that they are "barely making it" it gets old. I don't run their personal financial affairs so it is not my fault that they waste money on stupid things but they don't see it that way. I laughed so hard and said a few things I probably should not have one time when some guys that worked for us were talking about all going to purchase something after work. Well, they were not really going to be "purchasing" anything but rather RENTING tires and wheels. WHAT THE *%@#!!!!!!!!!!!!! YOU DON"T RENT TIRES!!!!!!!!!! Then a few months later they are crying as they don't have any money and they have to replace one of the tires because it got a flat. DUH! It is just stupid stuff like that that gets old but it happens. Right now my dh is looking at buying a new car, well it will be a used car that is about 2 years old. The make of the car is an upper end foreign car. He was looking at another chevy truck but we are keeping the one he has now that is almost 10 years old. He was concerned about what the people at work would think if he pulled up in it. My response and I said I'd tell it to them to their faces will be this, "THAT car cost LESS than the brand new Chevy/Ford loaded w/ all the extras truck you drive!!"
The other issue is w/ having a business partner. I'm totally against this. We have had one a long time ago. While in the beginning it all looks wonderful it very rarely is ones things get going. In the beginning when it is struggling will probably be better than when the business is successful. I've seen it all not just w/ what we went thru but also what I have seen others go thru. If you can do it on your own then I would be all means. Either that or the other person be the "silent partner" or you be the silent partner.
Insurance. OMG!!! Insurance I swear is what is going to ultimately put all small businesses out of business. Business insurance, umbrellas, vehicle insurance, property insurance, health insurance, personal insurance.......... UGH!!!!!! Insurance on you as the owner/operator. This insurance will continue to pay your salary to you or your spouse if something should happen to you. It will also pay another person to assume your responsibilities at the business. It normally is only for a period of two years but by then either you have recovered or decided to sell the business or your spouse can assume your position.
Government regulatory agencies. You better check to see which ones you may need a license of certificate from. Every now and then one of the state or federal agencies will decide they are going to regulate something that no one ever has before. You will NOT get any warning or anything in the mail from them. You are supposed to just know on your own. There are people out there that for a fee keep up w/ all of this stuff for you. In larger companies they have a full time person that does it. It is THAT bad.
PROTECT YOUR PERSONAL ASSETS!!!!!!!!!! Put all personal property into a family trust. Write up who owns what if you are married, split your assets. This helps protect them from seizure if something should ever happen. Make sure that anything you or your spouse inherited is duly noted as an inheritance.
Part II
DO NOT "OWN" THE BUSINESS! You personally do not want to "own" the business. A management trust can "own" the business and you can be the trustee to oversee the trust. For starters you do not want to pay self employment taxes . Then it also protects you personally. It also makes it much easier to sell the business if you should ever get to that point. If the business needs to buy property to work out of then create another trust, an investment trust may be best, to buy the property and then the business will rent it from them. Then if you do sell the business you still own the property and can receive monthly rent from the new owners. Unless of course they make an offer that is worth selling them the property too.
Hope none of this really discourages you but just want you to have a better perspective of what owning a business really entails. It can be fun and rewarding and sometimes it just gets old and tiring.
Owning your own business is the way to go and it doesnt have to be expensive. You can make as much or more than working for someone else because your boss will want to keep as much money as possible and give you a small salaried cut. I have a small home internet business and im looking to expand it. I am doing what my friends are and its easy and you make $20k to $30k a year.
Location: Finally made it to Florida and lovin' every minute!
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msjbrent, it all depends on what is important to you. Please, please, please listen to those people of experience above who've had their own businesses for many years, not someone who's just starting out. Your time is definitely not your own. Whatever you decide, the best of luck to you. Oh, I'd add this about the partnership thing: 1) don't go in with a friend whom you value, because, too often, the friendship is lost and 2) make sure every little detail is outlined in the partnership agreement. Who gets paid what to do what. Who invests how much for what return. You get the idea. Don't miss a thing. And go to a lawyer. This is my advice, and only from what I've seen happen to good people. Again, best of luck to you.
one thing that noone has mentioned is health insurance
it is allot harder and much more expensive when you are self employed.
It is also important that if this is the major source of income. you want to have some kind of private disability insurance. should something happen so that your family is protected .
oh yeah and a friends best advise
never put your home up against the business
My big mistake was I did not charge enough, based on me underestimating the true costs. Self employment tax got me a few times. I would have a good year, spend a few dollars, take a trip...then, I'd have a lean year, and I'd just starve. The boom-and-bust cycles made me a nervous wreck.
My solution, soon to be implemented: do both. Have a part time job, that will cover bread and butter, rent, etc. Then do your thing on the side. You don't feel like you're overly dependent on either gig.
But, there is no feeling like it, being an entrepreneur. What breaks people down isn't work. Most people like to work. It's the games and BS that go on in the workplace that break down people's spirit and makes them old.
Last edited by Dedalus; 03-22-2007 at 03:11 PM..
Reason: Grammar, as usual
I had my own business, enjoyed myself, and did fairly well - for a slacker. Trouble came when I needed to change my business format and my old clients wouldn't let me without putting up a fuss. That was a compliment, but living in a small town it's hard to change things. So I finished at the top of my game like a pro athlete should, sold my business, pi**ed off a bunch of people, and left town.
Now I'm coming back, wearing a Teflon suit of armor, and will be doing the kind of work I was headed towards when I left.
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WHAT THE *%@#!!!!!!!!!!!!! YOU DON"T RENT TIRES!!!!!!!!!! Then a few months later they are crying as they don't have any money and they have to replace one of the tires because it got a flat. DUH! It is just stupid stuff like that that gets old but it happens. Right now my dh is looking at buying a new car, well it will be a used car that is about 2 years old. The make of the car is an upper end foreign car. He was looking at another chevy truck but we are keeping the one he has now that is almost 10 years old. He was concerned about what the people at work would think if he pulled up in it. My response and I said I'd tell it to them to their faces will be this, "THAT car cost LESS than the brand new Chevy/Ford loaded w/ all the extras truck you drive!!"
