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Running a business vs being employed

A short blog about the advantages and disadvantages of running a business and being employed…

Running your own business Being employed
Buck stops with you for everything Responsibility is shared – how much depends on the company!
You’re more in control Someone else controls to some degree one third of your life.
You only get paid for the time you work Holiday pay, sick pay, pillow days, bank holidays all paid for in varying degrees
It’s easier to be passionate about your own business Often people feel stuck when employed
Flexibility – in theory you decide the hours you work and the amount you charge / earn Someone else decides when you work and how much you’re worth
In practice often business owners work much longer hours and don’t take the time off they should Lots of legislation to enable employees to work sensible hours – in theory
You get paid when your clients pay you Weekly / Monthly pay
You’re unlikely to make yourself redundant or sack yourself. These days employment isn’t as secure as it once was. You can be made redundant, dismissed, need to leave because of outside circumstances….
The ability to change direction, move with the times and work to your strengths Often you’re held back by bureaucracy, budgets and managers perceptions
More job satisfaction Can be at the mercy of managers and their mood swings
You can decide the clients you work for meaning a nicer working environment You work with whoever you have to
Less travelling if you work from home – which has lots of added time, health and carbon-footprint benefits. Unless you can work from home in your job (which is becoming more common) the average travelling time is around an hour each way
You’re at the mercy of your cashflow No cashflow to worry about
Lots of different hats to wear – you need to be up to date with finance, sales, marketing, operations techniques etc. Generally you’ll have your job and that’s it.
You can advance at your own pace – get more training etc. Training will depend on the company.