Are you ready for business?

Are you ready for business?

Before rushing into developing your ideas, planning, budgeting, and realizing your business, it is really advisable to make a careful and sober judgment on whether you are ready for it. Usually, the first reaction is “Yes, I am absolutely ready”, while the general arguments are “I want to work whenever I wish, I want to be my own boss, I want to become a millionaire”. Now, in the following paragraphs I will let you make a self-analysis so as to make it clear whether you really are well prepared to be an entrepreneur or whether you rather prefer to be an employee, who earns much but works a little, without a boss – something that is much different from the definition of the term entrepreneur.

There is no general solution for everyone, there are different solution for each individual, and as a person with rich experience both as an employee and as a company owner, I would like to show you how things stand in both cases.

Working hours

The employee has fixed working hours, in most cases from 9 a.m. until 6 p.m., there is also a regulated lunch break, and after leaving the office the employee may devote the rest of their day on their pastime activities and their family.

The entrepreneur does not have a fixed working time because they own their business and are constantly on the job, no matter what time it is, whether on a holiday or not. Often, there is no time even for a nap when a burning case is pending – an issue that employees are not even aware of and will probably never learn.

Wages

The employee receives a fixed wage paid regularly on monthly basis, a wage that is rarely corresponding to the real work done during the month. Most employees do not bother thinking about where the money comes from or what the other expenses of the company are since it is none of their business.

The entrepreneur is paid better for the work done (according to everyone else) and as the myth says – they got rich at the expense of the employees. The truth is that sometimes the entrepreneur does not even get paid – they have to first think about the wages of the employees and cutting the expenses in order to keep their commitments to the team. What is more – there are cases when the entrepreneur has to pay the wages of employees from his very own pocket only to keep the business going during a crisis.

Leave

The employee is entitled to 20 days of annual leave and may use is as the law provides it.

The entrepreneur enjoys the same amount of leave days, or even more since they are the boss, but in fact, this is the case only in theory. Practically, the entrepreneur rarely has time for a nice and calm holiday because as there is no fixed working time, there is no time for a holiday either. To keep the business going well, the entrepreneur often has to neglect the days of holiday and work at the office, at home, or at the hotel at the seaside.

Bankruptcy

The employee does not bother about possible bankruptcy of the company. If the company is closed down, over one reason or another, the employee may simply change it. They will find a new job at a new company, which will again guarantee a regular payment and regulated leave.

The entrepreneur does not want to even think about bankruptcy but is always on their guard. In case of bankruptcy, the entrepreneur will be faced with highly unpleasant consequences. Often, the entrepreneur has to deal with creditors and a possible bankruptcy may change their life for good, in a very negative direction.

The boss

The employee has a boss and this is considered the worst thing in the world. The boss runs the company and tells the employees what to do and how to do it. Furthermore, they hold them responsible, ask for accounts and reports on the work done.

The entrepreneur, purportedly, does not have a boss. However, they are faced with investors, shareholders, employees, and other people connected with the business, whom they have to report to and directly or indirectly meet their demands, and there is also the initially set business plan and strategy that have to be achieved.

Responsibility

The employee holds responsibility within their job description. Unless they commit a crime (stealing from the company, for instance), they assume no responsibility at all, while if the employee is responsible for a failure of a project of the company, causing millions worth harm, the worst thing that could happen is to be sacked, and then find another new job.

The entrepreneur holds responsibility before all the employees, investors, shareholders, and clients. If a large-scale project of the company fails, they are the person to assume the entire responsibility and all the following consequences, including lawsuits filed by clients and counterparties. Often, this responsibility is personal and has financial costs and effects.

Often, a company owner may wake up one morning to find all their money garnished, the company owing hundreds of thousands or even millions, and all of a sudden the perfect life one has got used to turns into hell.

Family

The employee has a family that they have the chance to meet every night after work, during the weekends, holidays, or leave.

The entrepreneur has a family, too, but they rarely manage to spend some quality time with them because, as we already mentioned, the business requires round the clock dedication, from any point in the world. As a general rule, the family suffers the biggest harm.

In brief

If you are a person, who is not eager to assume responsibility and risks, if you are a person, who wishes to receive a regularly paid wage, to leave the office on time, to forget about the work when at home, to rest during the holidays, weekends and leaves, then you are the employee type and entrepreneurship is not your cup of tea and you cannot handle it. Still, if you really want to embark on a path of entrepreneurship, you will have to drastically change your way of thinking and how you perceive the world.

If you are a person, who is ready to take risks and face challenges, your work to become your life; if you are a person eagerly taking initiative and responsibly about what happens around you; if you have no problem with the fact that sometimes there will be no time to even sleep, see your wife and kids for days, or months – then you are the entrepreneur type and you will manage to live with both the pros and cons that entrepreneurship is all about. Good luck!

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