Posts Tagged employee or employer

Employee V Employer – A view from both sides.

So in my 25 odd years of being in the workforce and business world, I have experienced what it is like to be an employee and an employer. The roles in life are very different from many aspects, financially, emotionally and from a sense of responsibility.

So why do we choose to be an employee?

Well I guess there are two main reasons;
– we are that character of person who wants the security of being an employee or,
– we are made to choose by our financial situation.

As an employee, I remember knowing that I had security and that my employer took the financial risk. Of course, if push came to shove, I would be let go to ensure financial longevity for the business owner, but generally I knew that I could move to another situation to accommodate my needs. There was no risk to me other then the slight stress of having to search for another job.

At early time in my life of course, I wanted to experience money and the quick way to do that, was to get into the workforce and get a salary. I didn’t have the time (well emotionally anyway) or nouse to plan and implement a business. I wanted the car, I wanted the lifestyle etc etc.

But the same is the case for later years also. I didn’t actually decide to build a business and go for “freedom” (I will speak more of this later), until I was 35. Up and til then I really didn’t have the financial backing to be able to set up a business. It would have meant taking a big risk and forfeiting alot of lifestyle.

It wasn’t until I had experienced nearly 20 years of being an employee that I then realised that the risk was worth it.

See the downside with being an employee is that you do not have the control of how much you can earn. Your employer has that control because they choose what wage you will be paid. Once you have a business, you an potentially remove that ceiling of income and take back control over how much potential earnings you can achieve. So once I realised this, and life presented a wonderful opportunity, I took the risk, lived on the vegemite sandwiches and pumpkin soup and well, went for it!

Choosing to become an employer.
As I mentioned, it was a case of experiencing one side of the equation over 20 or more years that led me to decide to experience being an employer. I was offered a great opportunity and took it – perhaps the first step that you need to take when looking to make the change. Life will present you the opportunities, it is what we choose to do with them.

The benefits of being an employer;
– freedom, open up your life and lifestyle,
– open up your potential earnings,
– be the regulator not the regulated…

The last point, while a little bit tongue in cheek, I guess the basis of the point is it feels much better to have control of your own destiny. And this point extends to the potential earnings discussion. When I moved to building a company, I knew that I was also moving to controlling my own destiny from an earnings point of view. As an accountant, the potential for was probably a maximum of $80 to $100K salary and this would take a long time to achieve because I was not specialising in any particular area of tax or accounting. If I had specialised say in tax then maybe $150 to $200K but still, it’s a ceiling that I have no control over.

As a business owner, this was completely different. Of course it would take time to build but the potential really is unlimited. The company was and is the hand that feeds me. Nurture and build it and it can feed more, and more. As long as I understood the mechanics of company structure (which I thank my accounting background for), then I can potentially smash that ceiling and pay myself higher incomes.

However, the biggest pull to step into building a business – freedom! It was more the case with the industry and business model that I was able to get into, but I was suddenly opening the ability to have a free lifestyle. I could work from home, from different states in Australia and indeed from anywhere in the world. As long as the internet is good, effectively the Telco model can be run from anywhere.

The freedom to choose times that I worked also. I could choose, if I wanted to, to start work at 11am and work 2 days a week. It was completely up to me because I had that freedom. Of course I didn’t because it was very exciting and (I still do), I really enjoy working in the industry. I also wanted to build security and achieve financial freedom as soon as possible.

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