Are you considering being an entrepreneur? Are you considering starting a career? If so, it is good to know the pros and cons of each. The table below will help you learn the difference in roles and mindset between an entrepreneur and an employee:

Entrepreneurs
Value wealth over job security

Can go months or years without payment

Long hours, especially during start-up

Potential for very large payoff

Build their own assets

Have a higer tolerance for risk

Own the company. Can only be fired by Board of Directors.

Sit behind the desk when interviewing

Are willing to take calculated and educated risks

Build systems for benefit of themselves

Pay taxes only on NET income

Build assets and then use them to purchase other assets

Build passive and portfolio income, taxed lowest

Invests from the inside

Can start other similar companies

Adapt quickly to change

Often have to dedicate yourself fully during start-up stages. Hard to raise a family and start a high-potential venture.

Have access through their businesses to much larger credit limits

Financial security once venture succeeds

Can become wealthy at young age

Have a bias toward action

Create the systems

Decides who to hire and who they work with

Have freedom to control direction of their company

Are able to use all of their skill sets

Rarely do the same thing two days in a row

Work on building assets so they’ll never need a 401(k) or pension

Make money when they sleep

Jobs
Value job security over wealth

Receive consistent paycheck

Regular, consistent hours

Constant but relatively low payment

Work to build someone else’s asset

Do not like risk

Could be fired at any time

Sit in front of the desk when interviewing

Adverse to risk

Build systems for benefit of employers

Pay taxes on total income

Do not build assets.

Build active income, taxed the highest

Invests from the outside

Restricted by non-disclosure and non-compete agreements

Often resist change

Have time to do other things besides work—such as raise a family or take up hobbies.

Much harder to obtain significant credit

Will have to follow strict saving and investment plan to reach financial security by retirement

Will not become financially secure while still young

Often have a bias toward passing the bill

Have to deal with the bureaucracies created by intricate systems of the companies they work for

Have little say over who they work with

Have little say over the direction of their company

Use only a small portion of their abilities

Often have repetitive jobs

Work on building 401(k) or pension

Make money only when they are working

Hopefully the table above has given you some insight into the different characteristics of entrepreneurs and employees. It is a difficult choice to make for many. Many aspiring entrepreneurs choose to work for someone else for a few years to gain knowledge, contacts, and capital. Others feel that the best way is to start out as an entrepreneur and have the advantage of quite a few years of learning over their peers. Whichever you decide, just make sure that the choice is the one that is right for you, not just the one that everyone wants you to make.

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