Do you believe this age-old advice for success?
- Do well in school.
- Find a good job.
- Spend less than you earn and invest the rest.
And, do you think that starting a business is risky and scary? You work long hours and never have time off or earn a lot of money.
These “truths” are no longer valid. In fact, the opposite is true.
Currently, according to the Bureau of Labor Statistics, over 15.5 million people in the US are self-employed. By 2020, it is estimated that 60 million people or 40% of Americans will be self-employed.
The safer, and more profitable path, maybe to become an entrepreneur.
Working for someone else is not only chancy, but limiting, both financially and personally.
Here are 5 reasons why self-employment is not only the safer choice, but a freer one, too.
1-Computers, Robots, and Automation
As an employee, many jobs are being replaced by software, a robot or a smart machine.
Automation is replacing more than the obvious unskilled jobs like assembling cars in a factory. As artificial intelligence gets smarter, it’s replacing jobs across many industries.
Self-driving cars will replace limo and taxi drivers. Uber already has plans to replace their drivers, once the technology is proven.
Fast food restaurants, such as Panera Bread are reducing the number of cash registers and replacing them with ordering kiosks.
The hotel chain, Yotel, uses robot butlers in its NYC hotel to take care of guest’s luggage.
And the innovation continues with white-collar jobs. For instance, entry-level law positions and paralegal jobs are now being done algorithmically, using artificial intelligence.
This trend is continuing in many other fields.
Employees are more at risk of being replaced now than ever.
As an entrepreneur, you can’t be automated out of your income. On the contrary, as a business owner, you can make that same software and smart machines work for you.
They can help you create a new service or product. They can reduce your time and expenses, therefore, increasing the profitability and efficiency of your business.
2-Takeovers, Downsizing, and Outsourcing
Takeovers, layoffs, and jobs sent overseas are common threats to the corporate worker bee.
Due to the poor economy, businesses have cut thousands of jobs. It started with the 2008 crash and hasn’t reversed.
Additionally, cheaper labor and fewer taxes are causing more employers to go overseas. Where they can produce their goods, and provide services cheaper.
Obamacare is a major incentive for management to keep the number of employees under 50. With less than 50 full-time workers, employers don’t have to provide medical insurance. To keep under the magic number, companies will use part-timers, consultants, and temporary help.
As an entrepreneur, you are never laid off or downsized. You can use the same methods to keep your business competitive.
Using part-time and temporary employees, and even contracting with overseas workers or virtual assistants can help you stay profitable and competitive.
And in today’s Internet-connected world, the whole planet is your resource, even for a part-time or solo-business owner.
3-Limited Control
When you work for a paycheck, you have limited control.
You don’t control your income, your job, your work time, your promotions, your environment.
Or, even where you sit.
And you don’t have any control over bad management or an economic downturn. And when you don’t have control, you’re at the whim of other people’s decisions or circumstances you can’t resolve.
By comparison, an entrepreneur has control.
Why?
Because you own the business, you determine the products you sell and the prices you charge. You can step up the marketing to get more sales or reduce costs to increase income. If something’s not working, you can take action quickly, and turn it around.
You decide the amount of success you desire and can work as much or as little as you want.
You can structure the business to work for your lifestyle, personality, and goals.
4-Limited Leverage
Can you leverage your employed working hours to earn income while you’re sleeping or on vacation?
Unlikely.
When you earn a living by having a job, at set hours, and an agreed-upon rate, there is no leverage.
Except for paid vacation, holidays and sick leave, you’re expected to be working and you, in return, expect a certain sum.
When you don’t fulfill your part of the employment contract, neither does the employee. You both have parts to play in this agreement, and as long as they’re fulfilled well, you have an income.
But, let’s look at a different scenario.
In this scenario, you create and sell a digital product, an app, a book, a course, a software program, or group training. etc.
There’s an audience who wants what you have and is willing to pay for it. And these customers will buy from you, even when you’re not at your desk.
Now, you can use the ‘do once, get paid many time’ model.
This is leverage, defined as, the use of a small initial investment of time or money to gain a high return.
It’s opposite to the ‘trade hours for money’ paradigm.
It rewards you with both wealth and freedom.
5-Consumer vs. Producer
A job puts you on the consumer path. Usually you buy cars, clothes, vacations, electronics, houses, etc.
When you receive your wages, you pay the bills that you created when you purchased these items. If you have money left over, you may save or invest it.
On the other hand, the entrepreneur or business owner is the producer, the innovator.
They create and produce the goods and services that you want to buy. For instance, an iPhone, a BMW, a trip to Hawaii, designer shoes, or a cool new app, etc.
Every time the consumer purchases, the producer makes money.
As an entrepreneur, the products and services you sell increases your businesses income—that brings you wealth.
Wealth is different from income. Wealth comes from owning the business that produces the goods. And a profitable business can be sold or borrowed against to acquire more assets.
Do you want to help grow someone else’s wealth in exchange for a paycheck?
Or would you like to use your efforts to build a business that you control?
What’s the Next Step?
As stated at the beginning of this article, the safer and more lucrative option is in owing your business.
Moving forward, jobs will become scarcer, while taxes and regulations greater.
Developing an independent income and creating wealth will preserve the quality of the life you want for you and your family.
Those who solely depend on the current system, and remain an employee, will find their portion of the financial pie shrinking.
Maybe, it’s time for you to become independent, control a piece of the economy and create wealth.
You may be thinking, I like my job and it pays well, why should I give it up? There’s no reason to give up your job. But, you should be prepared for the possibility of losing it.
You can start a side business now. You can do it without stress. You can take small steps. And, even if you are never unemployed, you’ll have an extra income and the security of knowing that you’re prepared.
The best part, with the Internet you can become a freelancer, sell a product or service, or run a business from anywhere, anytime, and with little investment.
Whether you are unemployed, eager to leave your job or seeking to create a part-time business, start now.
You’ll be glad you did.
P.S.
If you’re looking to start a business, but don’t know what to start or how to proceed, I offer a Free e-course, 7 Steps to Creating an Independent Income. It will take you to step by step to find what you want to pursue and how to proceed.
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