Even though life is so diverse and unpredictable, the traditional scenario is the following: go to school, get a university degree, find a good job, try to be promoted, work till retirement and rely on the pension payments after.
This path is neither right nor wrong, it just seems very secure and comfortable for the majority, so they follow these prescriptions. However, some of us prefer to explore the world by ourselves, risking and chasing dreams, creating new ways of generating income and finding our own purpose in life.
You may think that the second life strategy is tougher and even more dangerous. But the thing is that there’s no absolute stability, wage employment is just an illusion of it. And 2020 has perfectly demonstrated this.
Both ways are possible to anyone, you just need to have the right mindset.
Here are some key differences between employees and employers. So going through them you can better understand whether starting a business is just your fantasy or it’s something you’re actually capable of executing.
(Image source: Jessica Wang)
Time-based income versus value-based income
Employees have a regulated timetable with a specific amount of hours they should spend at the office, carrying out their work. Even if they are not very productive and efficient, regular payments are guaranteed.
While as an entrepreneur, you’re paid for your value. The better you deliver it, the higher will be the reward, the benefit of this system is that there’s no ceiling for your income. However, any time you don’t input enough effort and give 100%, you lose money, clients, and opportunities.
When you work on yourself, weekends and weekdays don’t exist anymore. And you’re the only one who decides when and how much to work. This can be a blessing or disaster. Some ambitious entrepreneurs are serial workaholics, they curate business processes daily and nightly, and the idea of having rest really frightens them. So to avoid burning out, you need to set the boundaries and maintain the work-life balance.
Of course, employees can also have pressure and experience work fatigue. Just they’re lucky to have a limited workload, so any infringement in their personal time should be paid or somehow compensated.
Employees have a set of duties and responsibilities, they’re in charge of. Ideally, as team players, they should be also concerned about the contribution of others and the final result. But all in all, mainly they care only about their own part of work.
While employers’ level of responsibility is much higher: controlling all the internal processes, navigating subordinates, checking the quality, monitoring efficiency, and providing value to the customer.
All the decisions of an employee are bounded by the scope of his responsibilities and should be approved by a higher authority.
Meanwhile, being a company’s head, you get total freedom of action. Sounds great, but it also means that you’re the one who finds solutions at the crises, direct your team in times of uncertainty and search for the new opportunities to develop the business.
Intrinsic and external motivation
Generally speaking, most people consider their job just as an inevitable duty that gives them money for living. So they try to perform well not to be fired. And only external incentives like financial bonuses and other perks can make them strive for greater results.
Employers, on the other hand, are usually driven by their passion and desire to make someone’s life a little bit better. Income is also important for them, but it’s not the only and main factor that makes them work so hard.
It is important to recognise which type you’re inclined to before taking the leap forward. Whatever way you’ll choose, remember that it, first of all, it should make you a happy person.