Business v Salary – which one is right for me? This question has a number of facets you need to consider. Business comes with risk and as a business owner, you should have the mental attitude to be able to take these risks. Employment, on the other hand, comes with considerably fewer risks. On the good side, a business might give you time freedom; besides your income could b directly proportional to the work you are doing.
There may be a number of reasons to get into a business. While some get there by choice, some are forced due to a lack of finding a suitable job. Whatever be the case, one thing you should always consider – how much am I earning from business and what is the opportunity cost of doing this business. Opportunity cost is a term used to understand how much your investment (as you usually need one to start a business) would earn if it was invested elsewhere. Then again, you have a time investment too and hey, the stress that comes from running a business.
So, here’s a starting point to decide:
- Work out a budget of what your expenses are and how much income you will need to earn?
- Are there adequate jobs in my field and can I get a job?
- Am I passionate about something that I feel I can’t get achieve through my job?
- Will business give me the earnings I need? Now, here’s the catch – it’s uncertain as your predictions can go wrong but that’s a business risk you take
- If my business can work as a confluence of my passion and my needed earnings, it could be opted for.
- Alternatively, one could opt to have a job if the job gives me the needed income. There’s a lot lesser risk involved
- Many people want to do business regardless so for them but realize that their business might not give them the need income. In that case, they might have a combination of both – business and a part-time employment