Employment vs. Self-employed

Employment vs. Self-employed

Which is better? Getting employed or be your own
boss a.k.a self-employed? according to wikipedia:

Employment is a contract between two parties, one
being the employer and the other being the employee.
In a commercial setting, the employer conceives of a
productive activity, generally with the intention of
creating profits, and the employee contributes
labour to the enterprise, usually in return for payment of wages.

Someone who is self-employed works for himself/herself instead of as an employee of another person or organization, drawing income from a trade or business. Self-employment is sometimes a precursor to forming a small business with employees.

When this question is asked:
"which is better? Getting employed or self-employed?"
Obviously, people who raise their hands for the former will work for the latter. That is a simple
employee-employer relationship.

What is so significant about getting employed?
When you are an employee, you are doing a great job solving problems of the company you work for. By solving their problems and contributing to their profit pools, you take a share of their profits every month, which is called salary or wages. You will also enjoy various benefits in kind, such as health insurance coverage, family health protection, retirement fund, pension plans, to name a few.

When an employer tries to recruit an employee, he has the obligation to pay the employee of his job done everytime when payment is due. In this context, he has to make sure that the value of the job the employee does has to exceed the salary amount that he is going to payout.

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In other words, if your boss is paying you $5000 a month, he will definitely make sure you are doing some great jobs that are worth more than $5000 a month, so he has the balance as profits. This is a simple idea in business.
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If you are still under employment, which is a good news, that means every month you are doing more than what you receive. The question is this:
If you are able to help you boss earn more than your salary every month, don't you think you can make yourself earn the same amount?

You are making your boss richer every month, and only get a portion of what you have done. You should have received the FULL amount if you were working for yourself. Make sense?
So quit your job now and become self-employed.

When the above sentence flashes through your brain, many questions surfaces:
- No, I have a family, I cannot afford to lose my job
- I like self-employed, but what can I do? I don't know how to start.
- start my own business? I do not have capital required
- It is too risky, I cannot take that
- what is the success rate of self-employed? I will not risk if I am not fully assure of success
- add yours
- add yours
- add yours

This is a good exercise. List all your thoughts down. Your job is to find ways to clear those blocks one by one. Those thoughts are what separates employee and self-employed.

Imagine now you are a Boss. You have a good business and now you are recruiting someone to do some work for you. Do you know there is this concern among bosses:Now I have recruited this person, and I will let him do part of my work. What if he knows too much about my business, and then leave me and start the same business, end up being my competitor?

So what do you think? Will the employees after learning everything about the business, will leave the job and start the same business, end up being a competitor of the business? it is UNLIKELY.

Employees and self-employed are different in their mind set. This sets them apart and that is why a business owner never afraid of employee leaving them and be a competitor.
What is the mind set that separates them?It is the list of your thoughts that you have written down. If you are a business owner, you will not have this list, since you do not have those
blocking thoughts, or you have found ways to eliminate them.

Congratulations! Now you understand the critical idea that set apart employees and self-employed. So what's next? Your choice. Not everyone is suitable for being self-employed, and not everyone can work as an employee for long. You choose your own destiny.

Thanks for reading and see you next time!