Your job IS a business!

Do you think that being an employee is more or less risky than being a business owner? Being an employee is a risk both emotionally and financially. Which of the following is true if you are an employee?

• You can control, to a large extent, how much money you make.
• You have the freedom to arrange your schedule based on your priorities.
• You don’t pay for other people’s mistakes.
• When you leave your job you can SELL it!

If you own your own business all of the above are true, if you are an employee all are false. Which would you rather be? Do not make the mistake of thinking that being an employee doesn’t carry risks at least equal to being a business owner. The biggest financial risk of being an employee is that you give to your employee the value you create as an employee. You get paid for the tasks but not for the value you build. For instance… if you work for BigCo and you have an idea that increases BigCo’s profits by $50,000 per year, you might get a $10,000 bonus for that year BUT BigCo gets the $50k additional price times 10 in the share price. So the company gets $500,000 in value and you get $10k. That’s the risk you have as an employee…the risk of giving away the value you create. You just gave away $490,000 in exchange for a salary. Salaries rarely make you rich! Equity value often brings you— wealth!!.  Think, research, analyze, decide.

.

Resources:

• Entrepreneur Magazine
• Business Brokers Houston