Is It Better To Be A Business Owner Or An Employee?
Is It Better To Be A Business Owner Or An Employee?
Is business ownership in your future possible? Maybe you want to know which one is better, being a business owner or an employee. Before getting started, let’s see which one is better.
I believe Business ownership is a much better route if you value time freedom, want to create an unlimited fortune, and wealth and make a big financial impact in the world. Business owners leverage systems and teams to make money that is not dependant on them trading their time for money.
There is a limit on how much time you can designate to serve others and make an impact. However, there is no limit on how much impact you can make with your money.
Employees trade their time, which is limited, for money and therefore limits their potential to earn money and make an impact.
So, what are the main differences between a business owner and an employee?
Differences Between A Business Owner And An Employee
Risk
Business owners have faith and courage to take risks to fulfill their dreams and purpose, while employees are afraid to take risks, play it safe, and fulfill other people’s dreams instead of their own.
Income
Business owners leverage systems and teams to build unlimited fortune and wealth based on results while Employees trade time, which is limited and therefore make a fixed amount of money.
Lead
Business owners take charge, lead and find long term solutions to problems to keep the organization moving forward while Employees say it’s not their fault and seek direction and guidance to solve problems as they arise
Knowledge
Business owners constantly learn and grow as they need to be generalists and know a little bit about a lot of things while employees are specialists who are hired for their expertise to do a specific role within the company.
Security
Business owners do not equate working for someone to security like an employee and therefore sacrifice receiving a steady paycheck to build a company while employees equate security with a job, receiving steady bi-weekly paychecks, and other benefits such as health.
Jobs are not as secure as perceived to be, because they are not guaranteed for life and employees can be let go for a variety of reasons like company politics or acquisitions and position redundancies.
Rules
Business owners create rules, values, and company culture while employees follow rules and like to be told what tasks they have to perform within a role and what goals they are expected to accomplish.
Decisions
Business owners are responsible to determine the vision, mission, and brand of the company and ensure that all decisions are made in alignment with them, while employees are responsible for decisions about the role that they are hired for.
Change
Business owners embrace change and can pivot their businesses and explore new opportunities when necessary. They choose and create their destiny while employees follow set processes, procedures and practices of the company they work for and have a hard time implementing changes.
Schedule
Business owners have the freedom and flexibility to decide their work schedule and the amount of time taken off every year, while employees work the set hours they are scheduled to work every week and have a limited amount of agreed time off.
Responsibility
Business owners are ultimately responsible for all aspects of their business and to determine how each person’s role contributes to the business and its growth as a whole, while employees prefer to have a defined range of responsibilities.
Support
Business owners are lonely and often seek and invest in mentors and masterminds to discuss ideas, especially at the earlier stages, while employees do not invest in themselves and discuss other people with their co-workers.
Investment
Business owners invest time and money in self-growth, team, tools, equipment, processes, training, systems, and experiences to improve their business and make it more efficient while employees invest time and money in obtaining credentials (degrees, certificates).
Numbers
Business owners love numbers and review their cash flow, profits and loss statements regularly to better forecast their company’s financial health, while employees are only concerned about their paycheck and yearly bonuses.
Employee Versus Business Owner Mindset
Business owners have different mindsets and think very differently in comparison to employees.
Dream Big
Business owners are change makers and problem solvers. They dream big and have a vivid imagination and future vision of their life and business.
They think outside the box and do not put a limit on what they can create and the money they can generate to fulfill their purpose. They do not follow any rules that do not serve them.
Believe
Business owners learn to deal with doubts that arise and believe they can create whatever they can imagine. They create a plan, and take the required actions to fulfill these dreams.
They know that if they have a dream, then they have the capability within them to fulfill this dream. They seek opportunities instead of coming up with excuses.
Passion
Business owners love what they do and are crystal clear as to why they have created their business. The reason inspires them to keep moving forward, even when experiencing temporary setbacks and frustrations.
Growth
Business owners value learning and growing every day, so they can serve and improve their customer’s lives better and make a bigger impact. Most Employees stop learning independently once they finish their formal schooling.
Confidence
Business owners are confident and know they are 100% responsible to create the type of business and life they want. They do not point fingers at others if they are not happy about something and work on themselves instead.
Time
Business owners know that time is their most valuable asset. It is limited, and once it is gone, it will never come back. They work smart, so that they free up their time by automation, tools, systems and teams leveraging other’s time.
Long term
Business owners think long-term. They have a vision of how they want their business to look in 10+ years and what kind of legacy they want to leave. They set all their goals with the end destination in mind.
Build wealth
Business owners think of money as seeds to multiply into more money for a bigger impact, while employees see money as the actual fruit that is to be consumed upon receiving.
Failure
Business owners have empowering perspectives of failure and see it as feedback to learn from and use as a stepping stone for success.
So, you may be wondering… can you be an employee and a business owner at the same time?
Yes, you can be. An employee can start a business while they work full time, as long it does not conflict with their role.
They may eventually decide to quit their job once they can replace the job salary with income earned in the business.
Is a business owner employed?
It depends. If a business cannot run without the business owner for a prolonged amount of time, then a business owner would be considered employed.
A business owner without a team and systems would be an example of this
Is a self-employed owner considered to be an employee?-
Yes, if the self-employed person is the one doing all the work or some of the work and cannot remove themselves from the business for a long amount of time, then they are considered employees.
A Doctor or a Dentist with their practice would be an example of this.
In conclusion, choosing to be a Business owner will enable you to live your best life of unlimited possibilities on your terms and make an unlimited wealth and impact on this world.
So, employee or business owner? Is it time for you to get past your fears and doubts and switch before it’s too late? The choice is yours!
If you are ready to start your purpose-driven business which is one of the best businesses you can start, download the “3 secrets to starting a business you love” below!
