Being your own Boss is a great option for many people, especially experienced business people who have a clear picture of what they want and how they intend to achieve it. There has never been a better time to start, grow and enjoy your own business.
Both being an employee and being a business owner has advantages and disadvantages. It is important to understand what the advantages and disadvantages are and be clear on what is important to you. Let’s take a look at each and also a few ways that a franchise can be a valuable option for you.
Advantages of Being an Employee
- Guarantee Income
- One of the largest advantages for being an employee is being paid a fixed amount and being paid on a known schedule. There are solid components consisting of income such as: Salary, Bonuses, Health Insurance benefits, Company shares of Stock, Etc.
- Set Hours
- You know when you are expected to be “at work” and these hours are typically regular.
- Defined / Limited Responsibility
- An employee is assigned a role or position. That role has a defined responsibility. Employees still receive payment as long as all the expectations outlined in their role are met. Periodic evaluations for their role are accomplished with the idea for promotion or pay increases when deemed appropriate. Employees only have responsibility for their position. They do not have a financial risk to the company.
- Vacation Pay
- Employees receive paid time off. They can take a holiday or chose to use that time however they choose. Paid time off allows employees to refresh and often means they come back to work with more focus and energy.
Disadvantages of Being an Employee
- Dependency
- Employees are hired for a position with a company. Their pay is tied to their ongoing performance. As time passes other job options may become less available. This will make employees become more dependent on their employer for income.
- Set Income
- The income of an employee is limited to their salary or hourly rate. Their pay is capped and can’t be expanded without overtime, a pay increase or changing positions. Limited income puts constraints on almost every aspect of life!
- Limited Development
- Employees are limited to the industry and the position they hold. While they can look to improve within that position, there are no options to develop in new fields or to pursue opportunities outside of their position.
- Job Security
- In a competitive environment, jobs and employees are expendable for business success. There isn’t a guarantee for life employment and employers can cut, layoff and / or let go as needed or as they see fit – Employment at Will!
Advantages of Being an Owner
- Independence
- When you are your own boss, you are free to make your own decisions. Owners are free to run their personal and business life as they choose. Company culture is 100% perfect fit for you. Working out at 10AM at the gym is never a problem. Shopping during off hours to avoid the rush is at play. How about playing 18 holes of golf when YOU WANT TOO. Independence is most likely the number one benefit!
- Pursue Passions
- Owners have the ability to pursue their goals and priorities. They aren’t limited by a boss who may have different aspirations. An Owner’s life is their own and they can pursue the interests that they choose to.
- Flexible Hours
- Owners can set their own hours. They can work as much or as little as they want or need. As important, they can choose when they work.
- Earnings Potential
- The potential for an owner is greater than an employee. it isn’t tied to a fixed salary or hourly rate. As an owner, they are able to enjoy the growth of the company as much as they choose.
Disadvantages of Being an Owner
- Stress
- Owners have no guarantee of income; they have no boss. There is rarely any peer support. Being a business owner can make for a very stressful and isolated experience. For a business to succeed the owner needs to manage and succeed in multiple areas of business such as:
- Marketing
- Sales
- Operations
- Administration
- Client Support
- Owners have no guarantee of income; they have no boss. There is rarely any peer support. Being a business owner can make for a very stressful and isolated experience. For a business to succeed the owner needs to manage and succeed in multiple areas of business such as:
- Investment
- Starting and growing a business can require a lot of investment. Some owners have the funds in advance, others use debt for start up costs. Depending on the type of business this investment can be big.
- Hours
- Owners often are required to work a lot of hours – especially at the beginning of their business. The amount of effort required to be successful often comes down to long hard work. This can have a negative impact on family, friends and personal health.
- Instability
- While the opportunities for success are unlimited, so are the risks. The first few years of starting a business can be very unpredictable.
How does a franchise Business Owner opportunity fit with Business Ownership? What are the Benefits of owning a franchise?
Benefits of buying a Franchise Business and becoming the Owner
- Proven Concept
- Buying a franchise you immediately leverage the benefits from the franchisor’s experience and tested system for opening, operating their business model. It is proven that franchise business Owners have an 80% chance of surviving where independent business owners only have a 20% chance of survival.
- Training
- You don’t necessarily need business experience to run a franchise. Franchisor’s provide training in everything from Technology, Sales, to continuing business education. Franchisor’s want and need you to be successful.
- Support
- For Franchisors to be successful, their franchisees first to be successful. Franchisors provide their Franchisees with support every step of the way.
- Leverage
- Many franchisors encourage communication between their franchisees. This allows franchisees to leverage the built-in support of like-minded owners who are there to help. Contrast this with being an independent business owner? Where are they getting their leverage or colleagues support?
If you are thinking about jumping off the JOB wagon and want to learn more about Business Ownership and how a Focal Point Business Coaching franchise maybe right for you, let’s set up 20 minutes to talk.
Mark R. Steinke
Elite Business Coach and Area Representative
1.610.768.7774