Psst, come here. I have to tell you a secret. Closer, closer. Whoa, not that close! I don’t know you like that. But your pores look very clean. Ready for it? There is no perfect job. I hit you with some mind-blowing shit on this blog, so tell your friends. I’ll let you compose yourself before I continue.
Are you doing okay? Yeah? Then it’s time for some real talk. The truth is, you would be hard pressed to find a job doing something you love that provides benefits and as many days off as you want along with a stable, high income, no liability or responsibility for the company plus complete control of your schedule and location. I’m sorry if I just shattered your dreams like Big Pun. (If you got that reference, please leave a comment with your favorite cocktail so I can take my new best friend out for a drink.) But let me make you feel better. I do think you can check off many of those things if you have success and several years in business as an entrepreneur. However–here’s where I knock you back down–even if you form a corporation and the legal liability is still personally off of you, you are ultimately responsible for the reputation and success of your business. My point is that leaving a company you work for to open your own won’t solve all of your problems, nor will closing the doors of your own company to work for anyone else. As someone who has been an employee and a business owner, I can speak to both sides.
That paragraph was an emotional roller coaster ride, wasn’t it? Get ready for more of that. Also, be warned that this might be a 10 minute read. But the best 10 minute read you’ve ever had, baby.
I am approaching this post from my perspective and particular experience, seeing as though I can’t get inside anyone else’s head. (Once they develop that technology though, my first stop is inside Lil’ Kim’s head to find out whyyyyyyy?) I currently run my business as a sole proprietor, soon to be an LLC. I have no administrative assistant or office manager. I do this job full time, which I believe means 70+ hours a week. My company provides services, not products. I require specific talent and professionalism in my service providers, so it’s not something I can cheaply outsource like you can do with some product-based businesses. I am not part of a franchise, so I can’t speak on that. I have Independent Contractors–not employees–which is not necessary or appropriate for all industries. So a two person partnership running an S-corp that sells products and has employees, including an administrative assistant, may have a completely different view on things. (If you are that person, I’d love to hear your views on entrepreneur life. Hit me up.)
I’m going to address some of the big factors in a Pros and Cons fashion. Because who doesn’t like that format? Probably only sinners and people who read magazines back to front. I will be heavily generalizing employee jobs here. I realize they are all different and depending on the position and company may have some of the entrepreneur Pros or Cons I discuss. My knowledge of employee jobs comes from the seven jobs I had before I opened my company and the things I have heard from family, friends and clients about their jobs.
Aight. Let’s do this. I have to break Part 3 into two posts because although I’m aware of the benefits of long form blogging, I’m not sure it’s what my readers want. You’re welcome.
Pros: You can make your own hours. Dentist appointment next Monday? You don’t need to use sick time. Want to leave for a trip on Thursday afternoon instead of Friday night after work? Go for it. Your cousin wants to meet for breakfast? Tell her to name the time. Schedule flexibility is one of the huge entrepreneur benefits in my book. Even when it comes to simple things like going for a run at 12:00pm in the winter instead of after work at 6:00pm when it’s dark out, or going to the grocery store during “off hours” to avoid the crowds of people who don’t understand how to move their cart of the way, I am grateful. But the best part is being able to see my family and friends when I want (as long as I’m not booked, anyway.) I live in the same town where I went to college, so I have college friends who will make a quick trip here if they are in the area. Sometimes they can only meet for lunch or for a coffee before they get on the road. When I worked at other companies, I couldn’t dip out for a 2:00pm Stoli Doli* date with my friend who I otherwise might not see for another year. I also couldn’t do things like going to my parents’ house a few days early to help with our giant Italian family Thanksgiving prep. (A table for 40 doesn’t set itself.) I couldn’t have left work to bring my father to doctor’s appointments an hour and a half away. But now? I don’t have to ask anyone or pretend I’m meeting a client. I just fucking go. This control of my hours–essentially control of my life–is one of the greatest advantages to me. This is the only Pro for this category because it’s such a big one and encompasses a lot.
Cons: You’ll work crazy hours. I work more now than I ever did as an employee. Most of this is related to the business owner part of my job. I have a very particular way that I approach my business with policies, same day responses and regular followup, which is time consuming. I have a strong dedication to my business, which is reflected in my hours and what I prioritize. So the amount of hours I work–which I think falls under the “schedule” umbrella–is often double what I put in when I worked for other companies. I don’t take full days off because I don’t have anyone else who can answer my emails or calls, but this will change as soon as I can hire a full-time, rockstar admin assistant who I can trust with this important part of the business. You don’t necessarily get to choose all of your exact hours. When I’m doing makeup, I get to choose whether or not I take a job but I don’t get to choose the start time for a wedding (I started one at 5:15am last weekend) or a film shoot (4:42am is not my favorite call time, but I have had to report at that time before). Those early wakeups can feel brutal, but still better than having to wake up at 6:00am Monday through Friday for the rest of my working years. There is no clocking out. I remember practically jumping up from my desk and cartwheeling out the door (psych, I can’t cartwheel) at 5:00pm or whatever time my work day ended when I was an employee. I never had the type of job that required me to do work after business hours and this was also before people had email access on their phones. Those hours from 5:00pm until whenever I went to sleep were mine and work did not follow me home. If you are someone who likes a definite end to their work day and a complete separation of work and personal life, run the hell away from any thoughts of entrepreneurship. The first thing I do when I wake up and the last thing I do before I go to bed is see if there are any work emails or texts to address. If they are urgent or time sensitive, I have to respond. Again, this will change once I have an admin assistant, but I think it’s something that every entrepreneur will experience to some degree.
Pros: You run the show. When you own a business, you call the shots. You decide how to market your company, what service(s) or product(s) you will offer, which clients or customers you take, who (if anyone) you hire, where your location will be (if you own a brick and mortar business) and a million other things. I am someone who generally likes and does well with responsibility. Some may call that “having control issues,” but this is my blog, so I get to decide what to call it. (See how I worked that example in?) I have always been the planner for family and friends–I have a group of friends who would still be waiting to see The Fast and the Furious in 2001 if I didn’t coordinate it–so that part of my personality lends itself well to the responsibility involved with planning, coordinating jobs and running a business. You earned it. I feel a great sense of pride in my company. It has by no means done well solely because of me–I wouldn’t be where I am with my awesome Independent Contractors, my supportive family and friends, my clients and those who have referred me–but I can give myself some of the credit. I am proud of what my company has become and it’s a really good feeling knowing I had a part in building it.
Cons: You’re accountable for everything. Your specific legal liability will depend on the business entity you form and insurance you carry, but unless you are in a partnership, your business is all you. Someone who works for you angers a client? You take the fall. Water damage at your business location? You may have some help from your insurance company (and landlord if you rent), but you’re dealing with the cleanup, the phone calls, rescheduling appointments, replacing any damaged items, etc. If you go away on vacation, you have to either arrange coverage or be available for anything that comes up. If you’re an employee and someone sues your company, you might be out of a job if it causes the company to close–which is recognize is a risk–but I think that is pretty rare. If you are a business owner and someone sues your company, even if you’re an S-corp, you’ve got many sleepless nights ahead thinking of ways to recover your business (if possible), what you will do if you can’t, how to pay for the legal costs and some added anxiety if you have people working for you who depend on you for their livelihood.
Pros: You have unlimited income potential. Like Biggie said, sky’s the limit. When you own a company, your next raise is only one killer idea away. That idea doesn’t have to be groundbreaking. It could have to do with bringing on more people, improving or creating a new product/service, going after a different market, etc. Unless you are an employee who works on commission, you probably won’t have the same opportunity to increase your salary. You may be able to get promotions or raises, but in many cases, you can only get so far as an employee. Entrepreneurship allows you to potentially make as much money as you want. I am not rich–yet–but I am considerably better off financially than I ever was as an employee. I’m not a big status or “things” person, but having a good income and no debt a) Eliminates the stress I used to feel about being able to pay for things and b) Allows me to have certain experiences I couldn’t have before. I had to turn down a lot of invites from friends–a Chelsea Handler standup show, a girls’ trip to Vegas, several birthday night out celebrations–in my early years as a business owner. It was a sacrifice, but I knew I had to invest my “extra” income into advertising, marketing and better beauty products. Those things were necessary to grow my business and bring in the income needed to never have to say no to an invite because of my bank account.
Cons: You’re going to go through broke stages. No one opens a business on a Monday and is rich by Friday. It normally takes a while to turn a profit. There are variables–whether you have a brick and mortar versus an online business, how you obtained your startup funds, which industry you are in, how saturated the market is, etc.–but the average amount of time needed that I have heard and found in my research is two years. Even when your business becomes profitable, you are probably “ramen profitable” at first. That means you make enough money to cover your business and living costs with just enough money left for ramen noodle-level meals. (To my gluten-free peeps: Consider this “Larabars profitable.”) Again, the amount of time you are financially limited will depend on your living costs and business expenses, but it’s safe to expect you will be struggling at some point. If you are a freelance boss, you’re going to have slow months where you get few (or no) job calls until you build up your business and reputation. If you offer a product/service people want and know how to run a business–unless you are putting in minimal effort and spending your money foolishly–this is likely a temporary stage.
I’ll leave you there, in anticipation of Part 3b. I’m sure you can barely stand it.
Have a beautiful day 🙂
*A Stoli Doli is pineapple infused vodka. Drink it on the rocks if you’re gangsta like me.