The Truth Behind Being Your Own Boss
Let me first remind the reader that I have been both a boss and an employee. There are many great things about both, and neither is more valuable or better than the other. Our company wouldn’t exist without employees; therefore, I hold them at a higher esteem than my own position.
When you are an employee you have enormous benefits that you don’t have when you are your own boss.
The Three Worst Things About Being Your Own Boss
- Automatic Benefits – there are none. When you are your own boss, your healthcare is not covered. There is no guaranteed salary, overtime, sick days, vacation pay, holiday pay, retirement plan, etc. If you want a benefit, it will have to come out of your own pocket.
- Heavy Responsibilities. Who you are, at the end of the day, is going to make or break your company. You are responsible for every job to complete, every bill to be paid (and there are many more of them as your own boss), every invoice to be collected. There will never be an opportunity to say, “I’ll just ask my boss if this is okay,” or “At least it is 5 o’clock; someone else will fix it next shift.”
- Red Tape. This isn’t meant to be a rant on the government, but everyone who owns their own company knows how hard it is to navigate through the red tape. You have to answer to the local, state, and federal government every step of the way. Permits, licenses, income tax, capital gain tax, payroll tax, state tax, sales tax, property tax, and the list goes on. Navigating through this complex tax system yourself will add incalculable stress, and hiring a professional will cost thousands. Be prepared either way.
The Three Best Things About Being Your Own Boss
- Freedom. You choose what you wear, your schedule, your attitude, if you want to be lazy or work hard. You are the decision maker. Ultimately, your decisions will decide the future of your company, and your company’s future is totally up to you.
- Business Expense. Where there is a lot of taxation, there are also plenty of opportunities to save. Almost every business expense can be deducted to help reduce your tax burden, including miles on your car, meals, entertainment, travel, and supplies.
- Networking & Education. For me, this is one of the best benefits. The relationships I am able to build outside of a 9-to-5 job are priceless. The connections I am making, the friendships I am building, and the lessons and experiences I am learning could never be accomplished from behind a desk or counter.
Being Successful
Whether you are going to be an employee or your own boss, it’s important to figure out what being successful means to you. What do you want out of your career or company, and how does that sync with the type of lifestyle you desire? Figuring out these answers will help you determine what is best for you.
Did I miss a point? Comment below and share with the world! Read the overview article, the switch: Freelance to Full Time.
Ben Homan is the founder of Skillful Antics: a web design, online marketing, and multimedia company helping clients worldwide. Let’s work together: 407-545-4649 or ben@skillfulantics.com