8 min. read
8 min. read
Business VS Job, what's better?
In today's article, we'll discuss what's better: being an employed engineer or starting your own business. Stay till the end, and I'll tell you the ideal choice.
Since my blog is for engineers, managers, and all technical professionals, I'll focus more on employment as an engineer rather than other professions like a doctor, a chef, etc.
Firstly, let's clarify the type of business or employment we're discussing. If we compare being an oil and gas driller working offshore and earning $5000 per month with a schedule of 60 days on and 30 days off. Or having a successful IT startup living in Bali, meditate, have a team of 50 people, work 2-3 hours a day, chilling under a palm and sipping coconuts, and your business brings $1 million net profit per month, so the second option looks better, right? But nobody talks about the time it took to achieve that or the challenges faced, or if it's even realistic.
The second option could be working as an drilling engineer, lets say, in the Dubai as an expat, in the office of a major oil and gas company, earning 20 or 30 thousand dollars per month, company provides a luxury house, good schooling for kids, medical insurance for the family, a decent work schedule, evenings and weekends you spend with your family, and being satisfied with the job, boss, and conditions. This is one of those jobs offer that many people dream of.
On the flip side, let’s say you have a car wash in your city and it brings you 2-3 thousand dollars per month net profit. You face regular problems with water supply, neighbors complain, and this much money is not enough even for living.
So, based on these examples, we see that it's not straightforward to say whether employment or business is better; it depends on what you're comparing.
To be more objective, let's highlight the main pros and cons of employment and having your own business.
For me, the main pros of employment are:
• Stable and predictable income
• Work and live in different countries, especially as an expat
• Personal development and learning at the employer's expense, with many growth opportunities
• Having a clear work schedule and vacation time; in Saudi Arabia, I had around 60 days of vacation per year.
The main cons of employment for me are:
• Usually fixed and limited income; no matter how efficiently you work, your income won't significantly increase.
• Lack of freedom, your employer decides when you start your work, go home, and what you have to do.
• Next one is Having a boss. I know it on my personal experience that your boss can make your live easy and happy or a nightmare.
Another aspect of employment is your colleagues, which can be both positive and negative. If you work in an office with good colleagues, coffee breaks, and Friday pizza parties, you'll say, "I love my team, it's what makes me excited to come here." But if you work on rotations, living in a cramped trailer with another 4 or 6 people for 60 days hitch, I don’t think you gonna be happy.
Thinking about your future career path? This video dives into the two main directions engineers usually follow — and which one can lead to long-term success.
Now, let's outline the main pros and cons of having your own business.
Pros:
• Freedom. You take control of your life, deciding where to live, where to go, what time to wake up, and so on. As Pavel Durov – Telegram Founder said, freedom is the greatest value in today's world.
• Unlimited income potential. Its clear, right, you can earn as much as you want; all depends on you.
• Fulfillment of your ideas and potential. This is exactly what I’m missing in my employment, and why I ventured into entrepreneurship. I believe I have huge potential that I can't fully realize at work. I need freedom to act, which I've been pursuing for the past few years.
• Next one is Helping others and creating products and services that benefit them and even change their lives. When I achieved everything I wanted as an engineer, I realized that I want something more, something that would allow me to use my knowledge and experience to help others in their development. This is where the Engineer Millionaire, EngineerNow and other projects were born.
Cons:
• Unpredictable work schedule, especially when you're starting a business, which can last for years. Listen to the stories of many successful entrepreneurs who worked 15-17 hours a day, without weekends, and sacrificed family time. Many marriages fell apart, and health issues arose due to lack of sleep. Yes, they became rich, but at what cost and what sacrifices they had to make.
• Next one is Unstable income. Business is very unpredictable. You might become a millionaire, or you might struggle to make ends meet for years, or you might become a millionaire several times and lose it all. Are you ready for such roller coasters?
• Next is High level of risk and stress. Big money equals big problems. As Robert Kiyosaki says, to be a successful entrepreneur, you must seriously level up in various areas, like a spider with different legs: sales skills, marketing, finance, accounting, expertise in your specific business field, knowledge of taxes, and so on.
Overall, I believe that running a business is more challenging than just having a job. For this, you must possess a whole range of qualities, such as self-motivation and discipline. You become your own boss and leader for your team; there's no one to push you, so you must always be charged and positive and transmit this to all your employees. If you're not disciplined and can't motivate yourself and others, then it's unlikely you'll succeed in creating a successful company that continues to grow.
Other important qualities of an entrepreneur are initiative, creativity, and the ability to take risks. According to statistics from Google and Stanford University, 95 out of 100 startups fail within the first 3 years. So, to build a successful business, you must not be afraid to take risks, constantly try new things, and never give up. Is everyone capable of this? Probably not, which is why most people work as employees.
Whether you choose a job or your own business, income growth is key. Watch this video to learn practical ways engineers can increase their earnings.
Now, as promised, I'll tell you about the ideal path for anyone of any profession. If you already have a job, keep working but try to spend all your free time improving your skills, both professional and business. Read books, take courses, learn sales, marketing, and so on.
One thing everyone I recommend to do is saving around 10% of their salary every month and invest it, create various assets that will secure your future life and provide passive income.
Also, in parallel with your job, you can start trying with various businesses. Usually, the first few businesses fail, but that's where you gain the skills that will help you launch a successful business later on. And here, I want to give you a valuable piece of advice: don't rush to quit your job. Give your business at least a year or two, and create a good investment portfolio for yourself with passive income.
The ideal scenario is when the income from your business significantly exceeds the income from your job, and you've built up enough investment capital for your future life. So that if you quit and your business suddenly collapses, you won't have to worry about where to get money and rush to find a new job.
So guys, I believe there's no right answer to the question of whether a job or business is better. The main thing is that you should be where they feel comfortable and do what you love.
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