Self employed or Employed?

Discussion in 'Growing and Managing a Business' started by persevance, Mar 17, 2011.

  1. persevance

    persevance
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    Dear all,

    I have this little question out of ambiguity, am wondering if anyone is going through something similar. I have been working/partially self employed at the same trading company for 3 years to come, my role is basically sourcing and importing of products at a lower cost and get a cut out of it, also i was employed to fulfill other accounting, distribution and development duties. Concurrently i am doing my degree and will soon graduate in May 2011. This signifies a crossroad to my future or perhaps the next 10 years of my life.

    I'm having mixed feelings at the same time because, after 3 years of hardwork building on this small entity, despite its still a small firm the profits i could churn out of it still seems pathetic. Of course we could say its about the passion and that it doesn't matter how much you make cause at the end of the day if you try hard enough you'll make it one day. Yes theoretically, it makes sense, but at the rate the business is moving, i really am wondering if i should face reality and get a banking job after my graduation. Though my passion lies in trading, eventually we're still bounded by responsibilities(Be it plans for marriage, getting a house, and/or to support a family). I have a sense of denial to succumb to employment yet at the same time, i somehow felt that the company i am running isn't gonna bring me far. At the same time, being in my mid twenties, i feel that i am falling behind my peers. Only making merely $40k usd (employment + partial self employed) per annum, i somehow felt i could score better in a different field.

    I'm sure prestigeous business owners or currently employed professionals here had gone through this stage, and i would humbly seek for your honest advice.

    Best regards,
    Persevance
     
  2. Fergal

    Fergal
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    Welcome to our Business Forum Persevance, well done on building your small business up to its present level, that is a great achievement and one that you should be proud of. You say that you will graduate in May of this year. Once you have graduated, do your feel that you will be able to dedicate more time to your business and that this could make it even more successful?

    When evaluating what you are getting / earning from your business, you should also take into account the value of the business that you are building up. E.g., in addition to the 40K a year that you are earning, you are most probably adding to the potential sale value of your business and the day may come when you decide to sell it for a windfall payment.

    You say that your passion is in the trading business, you are lucky to have found where your passion lies and my experience is that we are likely to be much more successful when we work in an area where we are passionate. If you take a banking job now, you are likely to spend some time wondering what could have been, if you had dedicated yourself to building up your business.

    On another note try to do what's best for you, without comparing yourself negatively with other people you know or trying to meet their expectations in any way. Good luck with it, whatever you decide.
     
  3. CloptonCapital

    CloptonCapital
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    What does your own business do? I have been in the same boat and I found it helps to diversify
     
  4. stepbystep2

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    I am self employed working on building my own business. To reach financial independence you must work on moving from the employed to self employed, to business owner and then investor. Not necessarily in that same order. If you are employed you can reach financial independence with a good monthly investment.
     
  5. persevance

    persevance
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    We are in the trade of consumer electronics mainly video games software and apple products, i'm the one sourcing for cheaper deals everynow and then. its kinda hard to diversify in this trade, the margin remains low its a vicious cycle, a bloody price war everyday. Which trade are you in Clopton?
     
  6. Jackchen

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    Before making a decision, you must honestly and seriously to answer three questions below:

    First: are your character fit for self-employed ? it needs perseverance. If you are unsure, it is recommended to take a psychological test.

    Second: have you found the item ?

    Third: Do you have enough time and effort to earn more income than before ?


    If all answers are yes, then just do it !!!
     
  7. jsingerston

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    My two cents:

    If you believe that the future of your existing business is bleak then yes it would be wise to plan to transition out of it. Maybe you can sell your equity stake in it right now and move on.

    If the outlook for your business is still good for the forseable future then you need to look for ways to leverage your time. You need to bring someone else in whom you can train to do what you are doing right now. But you need to be able to pay them less so that you profit from their employment. The best way to do that is to find ways to systemize your daily tasks so that you can train someone else with much less skill and knowledge. Start with one employee and move on from there.
     
  8. hetalhet

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    Currently I am an Employee but my 2 years goal is to be self employee and I am working hard to be prepare for It. To do so, I am trying to do some savings and Investment (Able to do very less and really tough for me), making team with various skills to work with me, experimenting new income opportunities, Started content writing as Freelance etc..etc... But I am doing all these efforts just to be self employee in 2 years.
     
  9. dripworld

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    Their are several types of employment.Govt jobs are for the life long while private jobs can be closed at any time and it is similar risky to self employment.I suggest to you everything is risk that we cant say when our life will end.Enjoy the life wither by doing job or no job thats important
     
  10. sigma

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    Freaky speaking, very less self-employed will move to employed unless their business is not good or they wanna change to other field. And you are the second type of them. I can only say nothing wrong to change to employed if you think you can get better career on other field, no one know what will going on in future, you gotta try it out to get know.

    I not too sure about your situation now, your company is 3 years old, what is the growing rate in the past three year? If the growing rate is good, although you are not making big money now but it can be in soon future. You should noticed that employed yearly increment is low.

    Finally, think twice before make decision, dont regret after make the final decision because you have no time to regret, your time all spend on your new target
     
  11. dripworld

    dripworld
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    well sigma you are saying that self employed will moving to employed but how about if somone not interested in their job ?Running a business is hard but If you have knowledge then you can make up some good money.
    A job cannot make you much rich but a business can make you more rich if you are doing good in your business.
     
  12. sigma

    sigma
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    Not interested in their job can move to other job, not necessary go to self-employed. And self-employed need to have some fund
    Running a business is hard? employed also hard, my friend. Nothing is easy in the world if you want to gain more. Are you saying job cannt make you rish? Look at this http://en.wikipedia.org/wiki/Canning_Fok, his salary per year is 20 millions USD
     
  13. Robinson

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    I am a wholesale supplier and i am self employed. Self employed is very difficult as compare to employed.
     
  14. dripworld

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    yep self employed require some funds but here in india our government provide loans for small business and even large business.If you compare to job then they will pay if their is no work also and also you get money for retirement etc.This is only for big companies.
    how much percent has got such type of jobs ?

    See the above post what he was saying.
     
  15. sigma

    sigma
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    Nothing much to be argue. Are you self-employed?
    If you are in business, you sure know that "how many percent of the business man are earning better than professional job"
    Anyway, it is good to see your country government have suppose on small business but i sure they have some requirement to apply. Unfortunately, it is hard to get loan for business if we dont have property in our country.

    By the way, previously i'm employed and now i'm self-employed just as many people did
     

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