I recently saw a poll on YouTube asking subscribers if they’d rather earn £100k a year working as an employee, or £50k per year as the business owner. No other details, that’s it.
83% of people answered they’d rather be the entrepreneur.
Here’s why I disagree, as someone who is a business owner & hustler. I’m specifically going to be addressing people’s comments on the poll which are simply untrue of owning a business for 99% of people.
Overall I think a lot of people misunderstand what being a business owner is, & don’t understand how much a company has to make in order to pay for their time.
Here’s the points people made…
“Having the freedom to make your own schedule is priceless!”
In 7 years of working full time I’ve never taken a week off in one go (this year will be the first).
Yes, if needed I can pop out for the day, but the total amount of “time off” I get per years is significantly less than my friends. Plus, when I am away I still have to work for some of the trip.
Additionally, I’m contacted at all times of the day & have to reply or risk losing the client.
“As an entrepreneur you keep all the profit whereas an employee doesn’t.”
True, but this assumes you can sell enough of a service/product to sustain that wage, whereas an employee doesn’t have this worry.
Every month as an entrepreneur you run the risk of losing clients & your life going to shit. An employee doesn’t have this concern, their wage is consistent irrelevant if the service/product sells or not. If the product/service doesn’t sell for a longtime, their base wage may become affected, but it does not fluctuate on a month-by-month basis.
“The person making £100k a year will get complacent & lose their edge.”
This is also true of business owners.
In fact, maybe more true of business owners, because once they begin making a significant amount of money reliably each month they then can take advantage of the time flexibility (which you can’t when you’re still hustling). They then have enough money to fund their lifestyle, & the freedom to do whatever they want without anyone holding them accountable.
An employee often has targets to meet, & the business will actively require them to keep their skills updated so the business can earn a ROI on the employees time.