5 Eye-Opening Truths About Being an Employee

#4 Your Arms Are Not Tied

Nowadays, it is trendy to talk about self-employment and business. Especially if you don’t have a real business. Pretty ironic, isn’t it?

Usually, people forget about statistics.

According to data from the U.S. Bureau of Labor Statistics — 20% of U.S. small businesses fail within the first year. By the end of their fifth year, roughly 50% have faltered. After 10 years, only around a third of businesses have survived.

It may sound terrible. But it is statistics for the USA which is one the best countries in the world for business. For others, this number is worse, especially in 3rd-world countries.

The economics itself is running high now. Same do the salaries in most companies. So being an employee is pretty profitable now.

You really have to think twice before deciding to start a business or to become an employee. What is better for you?

Here are 5 main advantages of stable employment.

Ability to Plan Your Spending

In business, you constantly need funds. It’s your eternal issue. There is always something that could be improved. You can hire one more employee, buy a new machine or spend money on advertising.

It is a challenge to separate personal cash-on-hand and business capital. Because business is your “child.” You want it to grow more and more. And money is the most effective way to reach this goal.

Also, you can have a $20k gross profit per month, but net profit would be only $1–2k.

Meanwhile, the employee receives a fixed amount of money every month. It allows you to plan your spending and control your cash flow. Nothing can change it. Even firing which is unlikely if you work well enough. In the worst-case go and find a new job in a month.

So you can create an investing plan for early retirement or put money aside to buy a car or a real estate object.

Excellent Income

This one is not so obvious, but very important.

The stability of your life is part of the Order. It gives you a sense of security and confidence in the future. We all need a piece of it these days.

What can give you more confidence about the future than a regular income that is enough for your needs?

Talking about numbers, a middle manager or highly qualified expert can make more than an average businessman.

Shocked? The trick is about perception.

You hear news about Elon Musk increasing his wealth for a couple of billions. Your brain notices it and associates it with businessmen. But most of them earn less than Elon…

An average employee compared to self-employed.

Intuit’s and Gallup’s Gig Economy and Self-Employment Report shows that the median income of primarily self-employed workers is $34,751, compared to a median income of $40,800 for those who work for an employer.

And the salary of middle managers is even more impressive.

The average middle Manager salary in the United States is $83,216 as of November 29, 2021. The range for our most popular Middle Manager positions typically falls between $72,078 and $94,354. Keep in mind that salary ranges can vary widely depending on many important factors, including position, education, certifications, extra skills, and the number of years you have spent in your profession.

Doesn’t sound like fairy tale numbers from advertisements, huh?

Useful Connections

In your own business, you mainly communicate with your employees or clients. You need it, but these connections won’t give you new opportunities.

Your employees just work for you. Your clients take your services or goods and leave money. There is no sense for them to try their best for you. You can’t call any of them and ask for help or consultation about some topic. None of them will give you insight or propose an attractive deal.

But you can create an incredible network working as an employee. It sounds weird, and to be honest, it isn’t true about all jobs.

At some moment in my career, I was working as a salesman. I got the contacts of many entrepreneurs and top managers. Some of them now represent the biggest companies on the market. We still communicate and propose to each other curious investment deals and share opportunities.

None of the “business clubs” would ever propose to you so many valuable contacts like work in the bank, like Goldman Sachs.

Your Arms Are Not Tied

At that point, you may think that I hate businessmen and self-employment. Actually, it’s not true.

I am fond of businessmen — people who take care of economics. They create goods and provide services we need every day. They make our lives better.

The thing I don’t like is hype around business-topic. As if it could be done by anyone.

No. Real business is not for everyone, only for the best of us.

It is risky to start a business, especially if you have a family. Responsibility for their lives should make you think twice.

So it is safer to give it a try when you have a solid base. Your stable income as an employee is that base. It allows you to try new and dangerous things, still being confident in the future.

You have plenty of time outside your 8-hours job. Use it to experiment and start your self-employment career.

If you are lucky and persistent enough, you can grow your own business. Otherwise, you have no risk at all. Isn’t it the best deal you’ve ever had?

Work time

There is another trick of consciousness.

Employees have mandatory working hours — 9 to 5 hell.

You can think that it’s terrible to work so much!

Until you get to know how many hours an average businessman works.

Some entrepreneurs work 40 hours or more every week, while other small business owners believe you should work at least 60 hours per week to find success. Some successful entrepreneurs believe that in the beginning, it is essential to work 14–18 hours per day on your business or startup.

Also, you can often hear complaints about routine at work. It may be reasonable. But in most cases, this is a problem of poor management.

As a person who tried both self-employment and being an employee, I love routine. It is your best friend. A strict routine is the only way to organize yourself to perform boring but required tasks. And yes, you have such duties both at work and in your business.

So instead of complaining — learn how to manage your time and priorities!

Final thoughts

Being an employee isn’t bad. Actually, it’s awesome. You have control of your life and cash flow. Stability allows you to experiment and try new things. That’s why it is an excellent option for everyone.

It’s really inspiring. Don’t forget about it!

P.S. If you liked this thing, follow me and clap a couple of times. Good luck!