To be an entreprenuer or not to be

[CitricAcid]

Going to Notre Dame, it generally isn't that people call it Notre Dame in the sense that you hate because they aer ignorant but everyone who pronounces it differently (correctly in French) are usually pretentious/outsiders.

 

[midlifechange]

To the poster who said entrepreneurs would not use this site much - I disagree - I've been an entrepreneur all my life but still think about retirement - I find the advice on this site excellent and visit often.

 

[rogersteciak]

You have to have a certain mindset to understand that concept.

In other words, he'd rather bust his hump for himself than do it for someone else, even if there is less of a cash benefit in doing so. It's not the fact that there will be less cash at the end of the day. It's the fact that you are not making yourself into a tool for someone else.

It's all about being your own master.

I agree. I work as an independent contractor through a temporary help agency. Legally, I'm not self-employed, but I run my own business in every other way.

It turns out that I actually make more money working as a contractor than I would as a direct employee. It does take some getting used to because my "last paycheck" may actually be my last paycheck if the client doesn't renew or I can't find another assignment right away. This reality back in the mid 1990s was what forced me to live well below my means and invest the rest so that I could FIRE sooner rather than later someday (along with learning how to manage my personal finances to be able to handle lumpy income streams).

Some contractors end up getting hired by their clients, which we refer to as "going permanent" when talking with people who are not contractors. But when we talk among ourselves, we refer to this as "becoming captive" because it means we lose out independence to choose the assignments we will work on (which happens by refusing the assignments we don't want to work on and interviewing for those assignments we do want to work on).

But we still have to satisfy the needs of our clients. We joke that we've exchanged "perceived security" (as a direct employee) for "perceived freedom" (as a contractor). One of my business school professors put it best when he said: Management is the world's newest profession and it has a lot in common with the world's oldest profession. He could have been talking about independent contractors and self-employed people as well.

 

[Enuff2Eat]

without reading every post responded, IMO it's much better to be an entrepreneur because most of "successful" people that i know are entrepreneurs NOT employee. You can always find a job once u failed as an entrepreneurs. In my personal family, the one have their own business works harder but much more financially sound. 2 sisters and 1 brother of my have enuff money to last them 2 life time and the rest of us employee are doing OK too but we might have to crank 30-40 years of working life and a constant of worrying about keeping our jobs.

enuff

 

[Milton]

There are many successful entrepreneurs who have done very well and made lots of money. There are also plenty of unsuccessful entrepreneurs who have failed (in some cases repeatedly) and wound up deeply in debt, or bankruptcy.

An employee may have to worry about losing his or her job, but a small business owner has to worry about losing clients/customers, making payroll, combatting employee theft/laziness/absenteeism, etc. There are very few worry-free employment options.

Ultimately, whether it is "better" to be a salaried employee or an entrepreneur is probably a moot point. Most salaried people are too conservative to face the challenges of self-employment. Most entrepreneurs are too independent to face the demands of a regular boss. It's kinda like debating whether it's "better" to be an introvert or an extrovert: we can't really control our basic personalities, so why worry about it?

 

[retire@40]

...You can always find a job once u failed as an entrepreneurs...

Finding one may be easy, but working it would not be.

 

[BunsGettingFirm]

Finding one may be easy, but working it would not be.

LOL! Even after being away from work for 1.2 years to be a student, I find returning to work difficult. It isn't the amount of work. Heck, I worked way more as a student because I was crazy enough to do my MBA, the CFA, the student council, and a big case competition all in the same year. However, I was never subject to other people's random BS because nobody had any pre-ordained positional power over anyone else. Leaders emerged of course, but leaders emerged because of their competence and people skills not because they happened to have landed on Plymouth Rock earlier than you.

 

[popowich]

It doesn't seem like we have too many entrepreneurs that post. Am I wrong?

They are very busy with their grand master schemes.

I have tried to make some extra bucks a lot of ways any they all pretty much failed or are not worth the time.

My best bet, like it or not, is working for the man.

-Raymond

 

[Bree]

Someone asked for good books for entrepreneurs:

E-Myth (the entrepreneur myth): When I read this book I almost cried because the business I had built immediately looked like a prison. Super long days, and not enough process oriented tasks... the business was destined for failure from the beginning because of lack of experience and poor goals from the outset. I thought I was a hotshot entrepreneur, but sadly that wasn't the case at all. Thankfully I learned these lessons early.

The E-Myth will really help you to see business in a new light as something you can create and release yourself from - an idea that I now hold dear to my heart. Basically unless you can step away from it at some point, you have created a job, not a business. Think about it.

4 Hour Work Week
Another great book that focuses on building processes and releasing yourself from your business. I have read this book 3 times now, and refer to it often. If you have read 'The world is flat' this is like a 'how to' version of that, targeted at your personal life - if you are an entrepreneur or employee you can benefit from the lessons in here.

I have started to implement some of the ideas in this book to my current venture, and though it has been a bit of a rough ride getting going, the business is now starting to pick up speed as more tasks become automated by my virtual team.

Good to Great

Build to Last

2 other great books which I haven't been able to get to just yet, but continue to be at the top of 'must read' business book lists posted all over the place.

Cheers guys


Mitch

 

[thefed]

Thanks for the explanation. I still don't get it, though.

The fact is, if you are working you are always a tool for someone else. Although an entrepreneur doesn't have a boss per se, he or she still has clients/customers (whose whims must be attended to).

Well, you're only truly your own master when you're not working.

Assuming equal expenses, an annual income of $80,000 would lead to FIRE sooner than $50,000. And fewer hours of work (35-40 per week) obviously provides increased leisure time in pre-retirement.

BUT, if you are a GOOD entrepreneur, you are working those 50 hrs/week to better your business which could/should take you to the 'next level'. Perhaps you gradually work less hours and/or make more money. If not, and you prefer the business to 'stagnate', it better be where you want it.

For example: over the last 2 years, I've had a 'self-sufficient' airduct cleaning company. I advertised the same for those 2 years, worked about the same hours, and netted a similar profit (although for 6 yrs straight I've increased net earnings by 10% or more). BUT, I was content with that as I grew my other businesses during those 2 years. It took me 4 yrs to get it to the point where I said.."Okay,self....this isn't bad. You can plan on about $50k net this yr,and plan on working about 400 hours...just by leaving everything on auto-pilot" That was wonderful while I started another company and groomed my real estated investments. Now, I am in the process of expanding to a different market area in an effort to increase profitability. But it's being done on MY schedule...not somebody else's.



Also, I beg to differ on only being my own master when I'm not working. My customers seek ME. They seek my services. I tell them what they will pay,and what I will do. If they agree, AND I LIKE THE SITUATION, I proceed. If not, I tell them to take a hike. Try that with your boss! I never put myself into a situation where the customer controls things...this is MY business and this is how it IS. Period. Sure, we sugar coat things for the picky people, but never are they in control...whether or not they know that. Sure, they can 'not' pay me...but the contract they signed before I began has resolved that issue 99% of the time...plus, we do what we agree to do...so that limits issues.



My guess is that you are an employee? nothing wrong with that.

 

[BunsGettingFirm]

I deal with business owners as part my job talking design, contracts, etc., and even though I'm the customer, I don't presume for one moment if I behave like a pain in the ass, I won't get kicked out the door. It's because the owners know that I'm not their only customer. Your boss is your only customer. There is a difference.

 

[retire@40]

I deal with business owners as part my job talking design, contracts, etc., and even though I'm the customer, I don't presume for one moment if I behave like a pain in the ass, I won't get kicked out the door. It's because the owners know that I'm not their only customer. Your boss is your only customer. There is a difference.

Luckily, I've had mostly good clients in my business, but I've done it a few times.

Sometimes a client is a slow payer, too demanding, or just takes up too much of your time.

Any one of those traits could be cause for me telling them to go elsewhere. When they have all three, I give them the hard boot.

 

[thefed]

Just gave a guy the 'hard boot' this evening.Felt great,although he didnt take it so well. Figure I'll be seeing him in court fo rmy $$ in about 60 days.