What are the pros and cons of starting a business above job?

The Businesses vs the Jobs Irony

Being a Marwari, business runs in my blood, my veins, my mind and my heart.

I’ll list down some realistic truth, and a part of my story of how I got going.

Not only you will get the pros ’n’ cons but you will also understand the true meaning of business.

Keep reading, and I will make sure you won’t get bored :D

What are the pros and cons of starting a business above job?

Since you have asked the above question, I am assuming that you have no clue about business. (P.S. I am no way trying to judge you, but want to share as much as possible).

The number problem that I see with most people who wants to start a business is that they fail to understand the meaning of business.

In very layman’s language I will say,

Business is a solution to problems for which people are ready to pay for a solution.

Now:

There are two kinds of business..

  1. Where you are Full filling the existing demand or requirements.
  2. You are creating a FAKE demand and then fulling the demand.

Let me give you a small example of both:

  • Where you are Full filling the existing demand or requirements.

In this case, I’ll take an example of housing. It’s a basic requirement of every individual. Every individual works for Food, Clothing & Shelter (Recently Internet was declared as a basic requirement by United Nation)

When you are building a business around full filling the basic requirements or supporting the basic requirements then you fall into the first category of businesses.

  • You are creating a FAKE demand and then fulling the demand.

In this case, I’ll take an example of Pepsi aka Soda/Soft Drinks. It’s not a human requirement. It’s a FAKE demand created in the market.

There are several more, but I will keep this one simple as I haven’t received a lot of data from you (If you can leave a comment and provide me more data then I can get into even more specifics).

Once you understand the basic definition of business and the type of business you want to get into, you will have a great level of differentiation.

Now:

Before writing a direct pros n cons, let me get deeper and help you understand few more things.

(Sorry, but I like going in-depth for all the topics that I write) \U0001f604

If someone have ever told you that starting your own business is easy, then let me tell you they are LYING.

..I don’t like sugar quoting stuffs, and providing false information.

To start your own business and follow the path of being an Entrepreneur means a good amount of deal.

Here are some of the important point you need to keep in mind:

  • You need to love what you do.
  • You need to find a set of people finding difficulty and are looking for a solution for which they are ready to pay.
  • You need to build a product/service idea which can be converted into a business.
  • You need to look into profitability. A business with no profitability idea is no business.
  • You need to have a VISION. Ask the following questions to yourself:
    - Where do you see the company in next 1, 3, 5 and 10 years. 
    - You need to have the right vision to take the right decision at the right time.
  • You need to have the right attitude.
  • You need to be a risk taker (But be calculative).
  • You need to understand, when to let things go.
  • You need to prepare yourself to SLAUGHTER the next 5 years of your life (MINIMUM- This is just a beginning).
  • You have to start working for 16–22 Hours a day.
  • You need to understand the basics, and you need to know everything, all the role. Basically you have to ensure everyone in your team likes you as you will be one of the “C” level executive. People will look up to you for inspiration.

Ok..I don’t want to scare you!

..but a lot goes into becoming an Entrepreneur and starting your business. With that in mind, let’s dig in further to understand what a business has to offer.

..in your language.. PROs! :)

Starting your own business has one major perk, that’s the power to make decisions. Nothing better and stronger than that.

..you may ask why?

Because when you know your business (or your work) inside out, you can take decision very quickly. (I’m not referring to taking the decision in the haste but taking a mature and wise decision ASAP) as there is an opportunity cost involved).

Full control over your decision. You cannot blame anyone else if anything goes wrong. It’s your business, you would be responsible for all the decisions made.

Might be wondering, you have the freedom to work anytime you want?

That’s not true…

You have to work 3x harder than the rest of your team members because a good team starts with a good leader.

Financial stability after 3–6 years:

Let me elaborate..

When I started with Power Up Hosting, Inc. I remember not taking a single dime of salary for the initial 1.5–2 years except for covering my food expenses (I have to eat in order to survive \U0001f605 )

Jokes apart..

The initial few years will be very tough for you financially, if you can make it for the initial 3 years, you will live long because the initial 3 years is when most companies or businesses fail.

After a good five year, you can expect your personal growth a lot more rapidly because you will be the highest paid employee in your own company. Also, you will own majority of the shares. (For me, even though I own the company, I say I work for my company..keeps me grounded all the time).

Let me go in-depth now on the other side of the business..

The amount of investment requirement will be high if you are looking to get into product building. You will need to form a team, so you will need to have a decent saving.

Building and managing the team is ONE HECK OF A JOB. It’s one of the most time consuming job. Everyday when I am at the time, I spend a good 3 hours micro managing a lot of work myself.

That’s super time consuming but important.

The risk involved of business getting closed due to lack of funds is very high. You need to make sure that when you start with your business, do your SWOT analysis right away to understand the situation better.

Getting Funded is the a real big challenge, if you are trying to get funded for the first time in your life for your very first company.

External conditions…Today, every single business relies on some other business. You have to be prepared. (For example, most online businesses rely on Google. One update can wash your entire work away in a fraction of second).

I can go deeper, but I hope you have got some idea by now. Happy to provide more details, just request in the comment below.

Now:

Let’s talk about Jobs…

I was never being taught to get a job as everyone around me (My Family, and relatives) are business owners.

..but one thing that Job offers is consistency which business doesn’t offer.

Regardless whether the company is doing good or bad, you get your paycheck of the exact same amount per month.

That means you can plan your future safely :)

..and if you believe in playing safe then Job is meant for you, if you love taking risk then read above once again about my entire summary on businesses.

..Ability to keep shifting from company to company, and location to location to learn (Being an Entrepreneur, I hate this point, but that’s not the case with people who are doing a job). I want to write an unbiased information

..but you have one major issue

You cannot dream big, because no matter how hard you try, you will only have a set of salary pre-defined per month in your hand, unless you can replace Sundar Pichai \U0001f61c

You have to follow a schedule. (This depends on the company rules and regulations). You basically only have to follow.

No Major massive long term gain.

You’ll always make far less money than the actual company and company owners as you put in no investment in the idea.

You cannot develop your idea :)

That’s about it..I have more to share, but in the end one needs to decide whether they want to MASSIVE long term gain with high risk or consistent stability with no-less risks.

To conclude and summarize:

  • Businesses gives you great deal of financial stability in the long run.
  • Businesses gives you the power to make the decision (This is a big deal for me).
  • You will enjoy your life after 5–7 years of your initial struggler because by then you will have 10s or 100s of team members in your time).
  • You will make lots of money in the long run (Similar to point one).
  • You will have the pleasure to work more, and work from multiple places.
  • You will get to network more with the other top guys in the industry (I didn’t cover this in the above point).
  • Jobs are secure, but not as high paying as owning a business.
  • You do not get to take the final decision
  • The growth will be consistent (Too many Job profile change and jumping from company to company will make your resumes look weak).
  • Jobs require no money to getting started. You can work for someone whenever you want.

I hope my answer would help you get a better insights to support your final decision.

Originally Published on my Quora Feed

If you still have any doubts then I will be happily available to guide. You can message me on Medium or leave a comment below.

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About The Author

Udit Goenka is the Co-Founder & CEO of Power Up Hosting & GoPBN. He is also an Author at UditGoenka.com. You can connect with him on Twitter, Google+, Facebook, or LinkedIn.