71. Employee or Entrepreneur — it’s a trade-off

If you are an employee you get some benefits, a stable income and some job security.

You also have to understand that if you are working for a private company, you’re basically making a lot of money for somebody else.

I don’t know what the numbers are but a guess would be that for every 10 dollars/pounds/euros that you make for your company, they are probably paying you one.

That’s the trade-off that you make. You will only ever receive a small percentage of the value that you bring.

If you are an entrepreneur you likely have no benefits, no stable income and no job security. At least for the first few years.

However you know that if things start to look good, you stand to be rewarded well for your efforts. Not only that but if you grow, you can start being rewarded for the efforts of your employees. But it’s not a certainty, there is a lot of risk involved.

Basically the trade-off between being an employee or an entrepreneur is:

Stability in return for a small percentage of of value you create

Vs

Instability in return for potentially a much larger percentage of the value you and others create

There’s no right or wrong decision. It’s purely down to personal preference.