~ 7 Minute Read
I’ve had ample experience in the world of being both an employee and owning a small business. As such I’ve seen the pros and cons of both occupational situations. Not long ago I wrote an article detailing ways in which owning your own business was superior to being an employee.
While I have never regretted my transition to micropreneurship, there are some unique positives to being an employee. Since I took the time to write about what I love about business ownership it is only fair that I dive into what I liked about being an employee. My goal for writing these articles is to help you compare and contrast the pros and cons of each situation so you may have a clearer idea about which suits you better.
1. Your Income Is (More) Stable
2018 will be the first year that the income I make from my business endeavors goes down from the previous year. 2017 was a stellar year for me, but some things have changed which has led to a decrease in my earnings.
While most employees overrate how secure their income is (you can get fired or laid off at anytime) you do know what you are bringing home every paycheck. This stability in earnings does provide less stress for many.
Personally, I’ve always been a risk-taker so I enjoy the ups and downs given that the extra risk leads to a larger monetary reward.
2. A Crisis Is Not All On You
I’ve seen my fair share of emergency situations when it comes to owning my own business. Recently, Google penalized my sites seemingly out of nowhere. This caused a lot of stress as I had to do a lot of detective work to discover what caused the rankings drop.
The point is that when I do have an issue with my business the responsibility of solving it falls squarely on my shoulders. When you are an employee you’ll have a boss that likely will have final say and be the one that should take on the responsibility of fixing a serious crisis. Either way, you are not alone when you are an employee in this situation, when you own your own business you often are.
3. Taxes, Taxes, Taxes
Unless you live under a rock, you know that the US tax code is complicated AF. Now you can take that complication and raise it up to eleven if you are a business owner. To give you an idea of how messed up this shit can get, last year I got a letter from the IRS saying I owed them $23,000 due to a misreporting of income from two years prior (true story). There was no court of law, it was up to me to prove to them that they were wrong, otherwise I was on the hook for money I did not owe them. Thankfully, with the help of my accountant (a.k.a my Father-In-Law) we were able to sort everything out and the IRS accepted our proof.
This is an all too common experience for business owners. Uncle Sam loves taking money you earned, and he always seems to want more. Owning your own business means you are responsible for tax reporting and paying your income taxes. Budgeting for this as a business owner is extremely important or you could easily find yourself not being able to pay your tax bill.
As an employee, your employer handles all of this behind the scenes. All you see is the deductions taken from your income on your pay stub on your check. Definitely an advantage to being an employee.
4. A Fixed Schedule
When you own your own business there is no fixed schedule, no 9 to 5, and you will work weekends. As an employee you generally have a fixed schedule that you work. You come in at the same time and you generally leave work at the same time. This is not the case as a micropreneur. Often you’ll find you have to work at weird hours depending on what needs done. You’ll also realize that even when you’re not working you are often thinking about ways to improve your business operations.
On the flip side, micropreneurship does provide much greater schedule flexibility. I work when and how I want (I am writing this article in my undies by the way), not when I’m told I have to.
5. More Opportunities For Social Interaction
Naturally, I am an introvert. I enjoy my alone time and being around others can be tiring for me. But that doesn’t mean that I never want to interact with others. The truth is, that most of our social interactions outside the home are from our place of employment. Talking with co-workers and experiencing work situations together help you develop bonds and friendships with your colleagues.
When you are a micropreneur there are less easy opportunities for social interaction. I find that I have to work harder to spend time with others, something that I am not always motivated to do. It is important for those who work for themselves to continually seek out friends and others to keep socially engaged. Finding a community group to collaborate on projects, or volunteering is a great way to stay socially active while living the micropreneur’s lifestyle.
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