The Pros and Cons of Being an Entrepreneur vs. an Employee

Have you come to career crossroads in your life? Think hard about your options. Start with the pros and cons of being an entrepreneur vs. an employee.

Have you measured your happiness lately?

Sadly, the majority of Americans aren’t as joyful as they used to be. During a survey, participants got to rate their overall happiness as; “very happy”, “pretty happy”, or “not too happy at all”.  Almost none of the participants chose, “very happy”, while many stated they were, “not too happy at all”.

Your career choice plays a key role in whether or not you’ll enjoy your life. If you’re not excited to go to work in the morning, your entire day will suffer.

Luckily, learning about being an entrepreneur vs employee, can help you guide your career towards the tracks of happiness. Read on to find out the pros and cons of being your own boss vs having one.

Entrepreneur vs Employee

Are you ready to start customizing your career? Before we start diving into the different pros and cons of being an entrepreneur vs employee, you’ll need to do a little self-reflecting.

Here are a few questions you can ask yourself:

• What type of jobs have I had?

• Why have I chosen the career path I’m currently on?

• What’s my ultimate outcome?

While knowing the pros and cons will help you prepare, they shouldn’t be your only guiding force.  The goal of these questions are to help you avoid following a career path, just because you think you have to. Rather than choosing an option that will make the people around you happy, choose based off of your own likes and dislikes.

As you take a moment, and think back, start looking for the things that motivate you. Keep these motivators in mind as you review the different pros and cons of each career path.

Pros of Being an Entrepreneur

Now, that you have a clear idea of what makes you happy on a personal level, you’re ready to start exploring the pros and cons of being an entrepreneur vs employee. We’ll begin by listing the pros that accompany the entrepreneur lifestyle.

Here are a few of the pros being an entrepreneur can bring:

• Freedom to set your own hours

• Believing in what you do

• Workplace variety

• You’re in charge

• You’ll directly see how your work helps others

• Thrills and excitement

• Ability to customize your career

Having the freedom to set your own hours can be particularly enticing if you have a lot on your plate. For example, if you have children, being able to work around their school schedules, can be a lifesaver.

Cons of Being an Entrepreneur

One of the things you’ll have to give up when you become an entrepreneur, is the ability to clock in and out. Your business may have operating hours, however, there will always be things left on your to do list.

Here are a few more of the cons being an entrepreneur can bring:

• Financial Risks

• Long hours

• Rough competition

• Disapproval from Friends and Family

• You have to believe in your work or you’ll fail

• Constant obstacles to overcome

• Always adapting for change

When you’re working for yourself, both your time and money are on the line. While you’ll enjoy the benefits of success, you’ll also feel the pain each loss brings.

On top of having to work long hours, you’ll also have to always pay attention to your competition. Knowing what your competition’s up to is a great way to protect yourself and your company. 

Pros of Being an Employee

If you’re leaning towards working a 9-5 job the rest of your life, you’ll be happy to know there are plenty pros. Here’s a short list of the pros being an employee can bring:

• Vacation and Sick days

• Health and Life Insurance

• 401K and or Retirement Plan

• Social Security Benefits

• Easier Taxes

• Defined Working Structure

• Reduced Uncertainty

• You’ll Always Know Your Paydays

If you’re considering a career path with a corporation, shop around to see who has the best benefits. Companies that are willing to offer their employees ample vacation and sick days, usually also offer constructive working environments.

As an employee, you can also enjoy using a w2 generator for your taxes, instead of more complicated methods. Finally, one thing you’ll definitely enjoy is knowing when you’re getting paid. Instead of hoping things work out, you can plan your life around money that you’re certain will arrive.

Cons of Being an Employee

While being an employee does offer added security, and benefits, they do come at a cost. Here are the cons being an employee can bring:

• Bad Bosses

• Limited Growth Opportunities

• You might not get paid what you’re worth

• Sudden job role changes

• Your schedule is out of your control

Having a bad boss can make a dream job feel like a living nightmare. When your boss doesn’t appreciate you, or recognize you in any way, it can be difficult to progress in your industry.

The same holds true for over-demanding bosses, who appreciate you, but are always asking for more. Another thing employees have to deal with is unfair wages or salaries.

Just because your company is bringing in the big bucks, that doesn’t mean they’re going to pay you more. Instead, many companies will look for ways to pay employees less, and less, over time.

However, depending on your industry, and the company you work for, many of the cons above may not apply. Research is unveiling that happy employees mean better productivity.

Studies across the nation are proving that happy employees work more efficiently, help retain customers, and they’re less likely to leave their positions. If you find a business you’re passionate about, and they care about their workers, you could have the ideal setup.

Make Your Choice

Now you know more about the pros and cons of being an entrepreneur vs employee. As you get ready to make your choice, remember to consider your own desires. Listen to your heart, and choose the path that will bring you the most joy and fulfillment.

We hope that our article will help you get the satisfaction you deserve out of life. For more ways to feel great, check out the rest of this site.