SwiftReg, South Africa, CEO explains the pros and cons of starting your own business. If you are on a path to self-employment, and would like to start your own company, this video will guide you there and enable you to avoid the pitfalls. This is the first video of a four video series
To a large extent the decision of choosing between finding a job and starting your own business depends on two things 1. Your personality 2. Your risk tolerance. Now most people are risk averse and they will prefer the perceived security of a job as well as the benefits of a steady salary each month.
The supply in the job seekers market is also boosted by conventional thinking, which is to study hard and achieve our highest possible qualification so that you can secure that dream job.
But you should ask yourself, are corporate jobs really that secure?
The world has become a far more competitive place and companies are under more pressure than ever before to compete with one another and remain profitable
and this has a direct impact on the security of a corporate job.
In my view, If you have managed to get over the hurdle of starting your own successful business your job security is far greater than that of a corporate employee. In fact Entrepreneurs would rather place their fate in their own hands than those of an employer.
On the other hand, Entrepreneurs are motivated by the freedom of owning their own business and are therefore prepared to risk more for bigger future financial rewards.
By the way, the ideal business for an entrepreneur is one that generates an income from selling a products or a services independently of your professional time. What I mean by this is, if you are a professional selling your time and there are only so many hours in the day and your income will be restricted to the amount of hours you can “sell”
So let’s go through the pros and cons of being an employee.
Employment pros
1. No personal risk
2. Perceived job security
3. Company benefits
4. Opportunity to learn at someone else’s expense
5. Flexibility to walk away
Employment Cons
1. Company may fail
2. Salary ceiling
3. Rigid working times
4. Limited leave
Own business Pros
1. You are your own boss
2. More tax efficient
3. Flexibility
4. No ceiling on earnings
5. Don’t have to retire
Own business cons
1. Big personal financial risk
2. Unpredictable earnings
3. Work longer hours
4. Labour law adherence
5. Total responsibility
In a nutshell, I would recommend that those of you who are happy in their current job, you should remain with that employer BUT never stop learning as knowledge is power and unlike material possessions it can never be take away from you.
For those of you who have a job but are unsatisfied by it, I would urge you to consider starting your own business while still being employed. This will provide a financial cushion until such time as your business is up and running and you can afford to leave your current job.
For those of you who are just not able to find a job you may be forced into starting your own business. For you as well as the natural entrepreneurs who prefer to start their own business, I have complied a series of related videos from business ideas to business plans and business finance which I hope you will find useful.
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