Getting your first job after college might be challenging in general. But running a successful business is also not simple.
The decision of whether to start your own business or look for a job will affect you for the rest of your life. Although it is not an easy decision, it does not have to be too difficult. Before making such an important decision, simply ask yourself a few key questions and conduct some research.
Each has advantages as well as unique challenges. You can make the greatest decision for yourself if you understand what they both entail.
In this article, we will compare the two career pathways and present insightful pros and cons for both to help you decide whether starting your own business or getting employment is the better option for you.
There are various benefits to pursuing employment rather than starting a business, many of which you may take advantage of right now. People choose to work for an employer over starting their own business for a variety of reasons, many of which are related to the benefits of employment.
Let's have a look at the pros and cons…
Because you can budget using your basic pay guarantee, many people feel that a job can offer them some kind of stability since their monthly income is more predictable. If you want fewer surprises, working for someone else can be reassuring because you'll know what your compensation will be each month.
With a job, you can also use your earnings toward other goals such as debt repayment or retirement savings.
Many people prefer to work as an employee rather than own a business since it will typically be less stressful and with fewer obligations. As an employee, you are not exactly directly responsible for the bottom line since you are assigned specific responsibilities.
The biggest burden for the success of the business lies with the founders, owners, or directors which many people who choose employment may not want to bear.
The possibility of professional advancement over the course of your career may influence your decision. Many jobs provide training to help you advance your career and broaden your skills. Professional development has two advantages: higher salary and more job options.
These opportunities are typically paid for by an employer. If you choose the entrepreneurship route, you would need to cater for these costs yourself which may not be always possible for most beginner business owners.
Read Also: How to Negotiate an Entry-level Job Salary
You are an employee - you are almost always dispensable if business needs demand. You do not have much control over the work environment you may find yourself in which means you will often be at the mercy of your employer.
Even with a ‘permanent’ contract, if your company decides to downsize, restructure or ultimately close down, it is very possible that you may lose your job.
This is probably well understood now given the devastating effects of the Covid-19 pandemic that led to massive job losses across not just industries but also did not respect rank - even executive-level managers were laid off.
Read Also: How to Protect Yourself From Loss of Income
Your earnings may not be as high as they would be if you worked for yourself. Furthermore, there is typically a limited chance for income advancement; once again, it all depends on your level of experience and tenure with the organisation.You also have little influence over the company's prosperity, which influences how much money you receive directly.
If you start your own business, theoretically there is no limit to how much income you can earn. This is true even if you were to just grow at a comparable rate as a company where you would have been an employee.
Every time your business’ revenue grows, your personal income too grows but the same cannot be said of employment income. It can be solely at the discretion of your employer.
With formal employment, you are not allowed to choose your job role or department within the organisation. Typically, you will have little say over the assignments assigned to you or when they will be completed. Low job satisfaction is a common outcome.
Fitting into the corporate culture can also be difficult, and it may not be a suitable fit for your personality or working style. Finding a job that combines your interests with high pay and perks might be difficult.
If you want to set your own hours and make business decisions, you should consider starting a business. This path may be more difficult due to the additional responsibilities and many other factors beyond your control. Below are the pros and cons of owning a business.
As a business owner, you make your own decisions. As a result, you will have more authority and independence at work. If you prefer taking on leadership positions and have a solid business strategy, starting a business can be a fantastic alternative for you.
You have complete control over your working hours and responsibilities. You also have the autonomy to make changes that you deem fit for the future success of your business without the bottlenecks of the employment world.
Because of this significant advantage of being a business owner, you can establish a favourable work-life balance which is viewed by most people as a requisite for a fulfilling life.
Many college graduates face a very competitive economic environment with fewer possibilities, making it a struggle to find jobs in their fields of study. Starting a business might cover this opportunity gap. Entrepreneurship provides virtually limitless career opportunities.
Read Also: How to Start A Business Step By Step
There are no guarantees in business, and quitting and looking for another job will not be an option if things do not go as planned. If you are a sole proprietor, you will have to personally bear all the business liabilities.
This is as opposed to an employee who can simply walk away to the next employment opportunity and have no liability for business failure.
Starting a business requires a wide range of responsibilities, including financial management responsibilities such as payroll and budgeting, as well as administrative tasks such as tax preparation. You can also be in charge of producing marketing campaigns or presentations to attract clients outside of your area of expertise.
These are typically not easy tasks to carry out effectively and will require a lot of commitment to succeed. That is why there are big rewards for those who venture into business and succeed. It also means that, for some, this might be a really uphill task that they would rather not undergo and may be best suited as employees - which is no less important.
It could take years for your new business to start generating money. There are no guarantees that you will be successful soon or make any revenue.
You will have to come into terms with this as you choose the entrepreneurship route and be committed enough to learn how to eventually steer your venture to profitability.
Remind yourself frequently that everyone's path after college and the professional world is unique. Live yours bravely, and don't be afraid of change. Think big, put in a lot of effort, pursue your passion, and keep an open mind when pursuing your goals.
Nobody is born into a particular profession or line of activity. You can experiment with both over the course of your career to find which works best for you.
With a job, you have the opportunity to boost your earnings. A business, on the other hand, allows you to live life on your own terms. This level of independence is also possible if you work and are willing to give more than you receive without regard for rewards, if you choose the greatest employers, act honestly, and stay with them for an extended period of time.
Nothing is cast in stone. Having read through this, you probably have your answer now. So, follow your heart, and all the best!