Business Ownership vs. Employment; Security and Risk

Entrepreneurship is the backbone of any economy.

Entrepreneurs create jobs, spur innovation, and contribute to the growth and development of their communities. Starting a business is not for the faint of heart, but for those who are willing to take risks, work hard, and stay the course, the rewards can be great. Despite the risks, there are three reasons why business ownership offers more long-term security than employment.

First, let’s define what we mean by security. In the context of this article, security refers to financial stability, job security, and the ability to control one's destiny. These three factors are crucial for many people when considering their career paths. Let’s explore how business ownership provides these three types of security.

Financial Stability

Starting a business can be a risky venture, but it can also be a lucrative one. As a business owner, you have the potential to earn more money than you would as an employee. You have control over how much you charge for your products or services and how much you pay yourself. You can also decide when to invest in your business and when to reinvest profits. This flexibility can lead to greater financial stability in the long run.

Additionally, as a business owner, you have the ability to diversify your income streams. You are not limited to one source of income, as you would be in a traditional job. For example, if you own a bakery, you can sell baked goods, offer catering services, and teach baking classes. This diversification can help you weather financial storms and provide a safety net in case one aspect of your business is not performing as well as you had hoped.

Finally, as a business owner, you have the ability to build wealth over time. If you create a successful business and eventually sell it, you can realize a significant return on your investment. This can provide a level of financial security that is not possible as an employee.

Job Security

I saw this up close and personal over my 20 years in the media industry. In 2009, after surviving several rounds of downsizing and layoffs, my exit ticket was punched. And again, in 2019, when I saw impending consolidations on the horizon, I took the opportunity to retire from the industry to begin building my own businesses. In terms of human treatment, the most brutal company I ever worked for, Digital First Media, coldly referred to their employees as “the body count,” and as a senior leader at one of their groups of publications, I was issued a directive almost every quarter for two years, to find ways to “reduce the body count” to improve profits for the billionaire hedge-fund owner.

When people think of job security, they often think of the stability that comes with working for a large corporation. However, as we have seen in recent years, even large companies can lay off employees or go out of business. When you own your own business, you are in control of your own job security. You do not have to worry about being laid off or downsized because you are the boss.

That being said, owning a business does come with its own set of risks. If your business is not successful, you may have to close it down. However, as a business owner, you have the ability to pivot and adapt to changing market conditions. You can make changes to your business model, offerings, or marketing strategy to stay competitive.

In addition, as a business owner, you have the ability to create jobs for others. This can provide a sense of security for your employees, as they know they have a job as long as the business is successful. This can also be a source of pride for you as a business owner, as you are contributing to the growth and development of your community.

Control over Your Destiny

Perhaps the most compelling reason to start your own business is the ability to control your own destiny. As an employee, you are at the mercy of your employer. Your job duties, schedule, and even your salary are determined by someone else. As a business owner, you have the ability to create your own schedule, set your own priorities, and determine your own salary.

Additionally, as a business owner, you have the ability to create a work environment that aligns with your values and priorities. You can create a company culture that is inclusive, innovative, and customer-focused. This can lead to greater job satisfaction and a sense of purpose that is not possible as an employee.

Finally, as a business owner, you have the ability to create a legacy that can be passed down to future generations. If you build a successful business, you can create a family business that can be passed down to your children or grandchildren. This can provide a sense of security for your family and a sense of pride in knowing that your hard work will continue to benefit future generations.

Moreover, as a business owner, you have the ability to make a difference in the world. You can use your business as a platform to support causes that are important to you, such as environmental sustainability or social justice. You can also create jobs in your community and contribute to the local economy.

Starting a business is not for everyone.

But for those who are willing to take the risks and put in the hard work, the rewards can be great. Business ownership provides more security than employment in many ways, including financial stability, job security, and control over one's destiny. It also provides the opportunity to create a legacy and make a difference in the world.

If you are considering starting your own business, it is important to do your research and develop a solid business plan. Seek the advice of experts, such as attorneys, accountants, and business coaches, to ensure that you are setting yourself up for success. Starting a business can be challenging, but with hard work and perseverance, it can be a rewarding and fulfilling experience.