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Which path forward?

I previously blogged a few choices that we often face in life.  Click here to read that post.  We will now begin to explore in details each alternative in the coming weeks.

Crossroads of Life

There comes a pivotal point in one’s life where one is faced with a decision to make.  The decision of whether to become an employee or embark on the journey of entrepreneurship. This is a crossroad. It is common with new graduates. Some parents have also been known to arrive at such crossroads mid-life for various reasons.

It is a decision that will shape the future and impact one’s career, lifestyle, aspirations, and sense of fulfillment. It is therefore imperative to explore the pros and cons of both paths to help one make an informed choice.

Let’s dive in

The choice of following a path can be hereditary. For example, if my parents were lifelong employees, there is a high  probability that I will follow suite. The same can be deduced if they were successful entrepreneurs.

However, one can deviate from such a path by an intentional determination (a post for another day 😊)

Employee or Employer?

“Go to school/college. Graduate.  Get a good company with great benefits to work at.  Work till you die” (excuse me, I meant till you retire). This is a mantra in most households, if not all households.

So we all follow until we meet another mantra. “You’ll never be successful in life working for someone; being an employer/entrepreneur is the best route.”

Now we’re confused. We have to re-learn everything we grew up believing. But change, they say is always good. Is it really? What kind of change is best for us? We might never know till we explore.

Being an Employer is different from

I need to clarify that being an employer is not the same as being self-employed. Tons of us are self-employed. Being self-employed is akin to being a “glorified” employee. The biggest difference is that you control your own time. But you bear all losses and profits. Consequently, if you don’t work, are sick, or on vacation, you don’t earn income.

Except, of course, you have multiple streams of income and/or have built your self-employed career to a point where it generates a steady income.

A great book to read on this topic is Robert Kiyosaki’s Cash Flow Quadrant. This blog deals with the top half of Kiyosaki’s Quadrant; Employee (left) and Business (right).

Pros and Cons

P R O S
	EMPLOYEE	EMPLOYER
P         R       O       S	1.  Stability and Security: You typically have a stable income, access to benefits such as healthcare, and the security of knowing you have a regular paycheck. 2.  Structured Environment: Many people thrive in environments with clear roles, hierarchies, and routines. Being an employee offers the comfort of structure and clearly defined expectations. 3.  Learning Opportunities: Working for an established company often provides opportunities.  You might get professional development, mentorship, and training programs that can enhance your skills and advance your career. 4.  Work-Life Balance: In many cases, being an employee allows you to leave work at the office and enjoy your personal time without  stress.	1.  Freedom and Autonomy: You have the freedom to chart your own course, make your own decisions, and pursue your passions and vision for your business. 2,  Unlimited Earning Potential: Offers the possibility of unlimited financial success through business growth, scalability, and innovation. 3.  Creativity and Innovation:  There is no constraint of corporate bureaucracy.  Entrepreneurship allows you to unleash your creativity, innovate in your industry, and bring your ideas to life 4.  Legacy Building: Building a successful business can be a legacy that you leave behind for future generations, impacting not only your own life but also the lives of your employees, customers, and community.

 

C O N S
	EMPLOYEE	EMPLOYER
C     O       N     S	1. Limited Growth Potential: Promotions and raises are possible. However, your upward mobility may be constrained by organizational hierarchies, competition, and politicking from colleagues. 2. Lack of Control: As an employee, you must adhere to the decisions and directions set by management.  This  can sometimes feel restrictive or demotivating if you disagree with company policies or strategies. 3. Fixed Income: Your earning potential is capped by your salary or hourly wage.  There is limited opportunities for significant financial growth beyond incremental raises or bonuses. 4. Dependency on Employers: Your job security is ultimately in the hands of your supervisor and/or employer. This leaves you vulnerable to layoffs, restructuring, or changes in company direction.	1. Financial Risk: Business comes with inherent risks.  This can  include financial, the potential for failure, loss of investment, and personal financial insecurity, especially in the early stages of business. 2. Work-Life Imbalance: Running a business often requires long hours, sacrifice, and dedication.  These imbalance can strain personal relationships and lead to burnout if not managed effectively. 3. Uncertainty and Stress: The journey of entrepreneurship is filled with uncertainty, setbacks, and challenges.  This can test your resilience, adaptability, and mental well-being. 4. Responsibility and Pressure: As a business owner, you bear ultimate responsibility for the success or failure of your venture.  This can also be emotionally and mentally taxing, especially during tough times.

 

Conclusion

Choosing between being an employee or an employer is deeply personal. The choice will depend on a lot of variables. Those variables might include your individual goals, values, risk tolerance, and lifestyle preferences. Both the employee and employer paths undoubtedly offer unique opportunities and challenges.  There is therefore no one-size-fits-all answer.

As you weigh your options, consider what truly matters to you.  Also envision the future you want to create and trust in your ability to make the right choice for yourself.

Whichever path you choose, embrace it wholeheartedly and learn from every experience.  Remember that success is not defined by your title or occupation but by the fulfillment and impact you bring to the world.

Best of luck on your journey,