Talking Business with SMEs – Keeping a Job vs Starting a Business

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By Frank Tagarira

I met a young lady a few days ago. She is keen to start her own business and become a full-time entrepreneur but this would mean leaving her well paying job. She is faced with a dilemma and she is finding it extremely difficult to make up her mind. I have to admit as well, keeping a job or starting out in business is quite a difficult choice to make for many.

So, are you considering being an entrepreneur? Are you considering starting a career (job)? If so, it is good to know the pros and cons of each. If you have what it takes to be an entrepreneur, I say go for it (no regrets). If you would rather keep your job to get a steady pay cheque (well sometimes it’s good to play safe), go ahead and keep your job. The table below will help you to learn the difference in roles and mindset between an entrepreneur and an employee.

Entrepreneurs
Value wealth over job security.

Can go months or years without payment.

Long hours, especially during start-up.

Potential for very large payoff.

Build their own assets.

Have a higher tolerance for risk.

Own the company. Can only be fired by Board of Directors.

Sit behind the desk when interviewing.

Are willing to take calculated and educated risks.

Build systems for benefit of themselves.

Pay taxes only on NET income.

Build assets and then use them to purchase other assets.

Build passive and portfolio income, taxed lowest.

Invests from the inside.

Can start other similar companies.

Adapt quickly to change.

Often have to dedicate yourself fully during start-up stages. Hard to raise a family and start a high-potential venture.

Have access through their businesses to much larger credit limits.

Financial security once venture succeeds.

Can become wealthy at young age.

Have a bias toward action.

Create the systems.

Decides who to hire and who they work with.

Have freedom to control direction of their company.

Are able to use all of their skill sets.

Rarely do the same thing two days in a row.

Make money when they sleep.
employees

Value job security over wealth.

Receive consistent pay cheque.

Regular, consistent hours.

Constant but relatively low payment.

Work to build someone else’s assets.

Do not like risk.

Could be fired at any time.

Sit in front of the desk when interviewing.

Averse to risk.

Build systems for benefit of employers.

Pay taxes on total income.

Do not build assets.

Build active income, taxed the highest.

Invests from the outside.

Restricted by non-disclosure and non-compete agreements.
Often resist change.

Have time to do other things besides work??????’??