Entrepreneur vs Employee: One provides endless opportunity and the other has it’s limits to opportunity. Who you are determines which direction to go.
Both entrepreneurs and employees have their advantages and disadvantages. You may like the advantages that entrepreneurship provides, but if you don’t have what it takes to handle the disadvantages that come along with it, you’ll likely fail. Then you will be forced back into employment.
The main reason people think entrepreneurship is better, is because they would have no owner/employer placing demands and limits on them. Many people let this be their driving factor and forget looking at the big picture.
Living A Fulfilled Life
We all have inner satisfaction limits. This means, the point where we hit a lifestyle that we truly love and have no desire to push beyond that point. Think about that for a second. If your dream lifestyle is to live in a cabin by a lake and fish all day, then you can achieve that goal rather quickly as an entrepreneur.
However some people want to travel the world and eat at all the best places. It takes a bit longer to create the cashflow needed to support that lifestyle….. but as an entrepreneur, it is possible.
Trying to achieve ether one of those lifestyles may not be possible as an employee. It really depends on your employer/owner. The going rate of pay for any given position, is somewhat based on the cost of living for that level of employee.
Anyone that’s doing the same job as you, is going to be earning about the same amount as you. You’ll likely earn enough to pay your bills with a little left over to save or go on vacation. Some higher level jobs provide more cushion than lower paying jobs, but again they are also in a higher standard of living group of friends.
Given this fact, they still have the same concerns and struggles, but just at a higher scale of pay. Most of these people also followed the heard through the higher education system. They now have to deal with their student loan debt, which is on of your largest debts, and not forgivable.
Student Debt (WHY?!)
A discussion of the education system is one for another day, but lets just touch on a bit here. Racking up student loan debt and spending lots of time learning info that will never be used, doesn’t make much sense as an entrepreneur.
Going through this, just to get a piece of paper/diploma, to show a future entrepreneur/employer, seems goofy to me. However, many employers require a collage education, because they want to know you are trained correctly. But the training they are looking for most of the time is not what you think.
For general, non-licensed work, the employer requires a college degree because they know you have been trained to:
- Show up on time
- Listen to directions
- Complete required task on time
- Do the task to a satisfactory level
- Eat when you are allowed
- Go home when you are allowed
- Think about your work while at home
That degree you earned, just proved that you can do all these things over a long period of time and you are even willing to pay to do it! Sounds like a Perfect Employee to me. If you truly want to be an employee, which is OK, it’s just sad you have to go into debt, and use years of your earning life, learning so much useless information, just to prove your dedication. This is one of the differences between an employee and an entrepreneur. The entrepreneur learns only what they need to know, as they don’t have to prove anything to anybody.
But I Am Going To Be A Doctor!
Now if you are going to practice as a doctor, attorney, etc., then you need this process for licensing anyway. But, you should know that most doctors and attorneys don’t get rich. They start out with lots of debt from having gone through the required schooling. Playing “catch-up” with heavy debt is tough and takes a long time.
They generally put in many more hours than other jobs, so that also increases their income and helps them work away at the horrible student debt. But, they also try living a lifestyle that emits the “Dr. success” way of living. This in-turn creates more debt.
It would seem as though they “live to work”, and they aren’t around as much for their family (if they have one). I know for me, as an entrepreneur, I “work to live”. Meaning my family takes priority over work. I have been the one in complete control of my time for almost 30 years.
I tried being an employee for almost decade, but once I had a family, it was clear that those limits were not going to work for me. As I mentioned in other places, my last few years as an employee, were about as good as it gets.
My employer was great! I didn’t ever work overtime. I lived only blocks from work, and if I ever had to leave, it was never a problem. Even with these advantages, I was limited by the level of success my employer/owner could give me.
I refer to an employer as the owner of the employee. That’s because the employee has SOLD a portion of their time to the employer. The employer PURCHASED the hours of time from the employee, which make the employer the new owner. That new owner also purchased an OPTION on the employees time, whereby the owner has the right to demand purchasing additional time (over time).
Entrepreneur vs Employee
The two mindsets are completely different.
- The employee mindset is one of servitude and wanting to be recognized for doing a good job for their owner/employer. This mindset is also of not wanting full responsibility, so they only accept responsibility for their job description (their small part in the company).If something goes wrong, they want to find a way for it to be someone else’s fault if possible, so as to not lose their job. An employee will accept having a limit on the amount of money they can make, in exchange for little responsibility and the mental comfort that provides. However, employees are quick to make judgment when their owner (the person who takes all the risk and responsibility) seemingly makes a mistake in running the business.
- An entrepreneur knows that ultimately any problems that arise, falls on them to correct, and they accept that. The entrepreneur accepts all responsibility knowing the potential financial rewards are unlimited. The entrepreneur also provides a job for each employee, that pays for their families lifestyle.
It is absolutely crazy to me when an employee speaks negatively about an entrepreneur! The entrepreneur is willing to take on ALL the responsibility in exchange for having no limit to the amount of income they can make and the lifestyle that can provide their family. Plus they are providing jobs for those who want and are willing to work. An employee wouldn’t have a job if it weren’t for an entrepreneur creating that very job/position.
Entrepreneur
Entrepreneurs are the ones that have the guts to take on calculated risk to create something bigger than themselves. They also educate themselves to minimize those risks. But an entrepreneur gets educated in a much different way than employees.
An entrepreneur efficiently researches to gather information they need for their business. They don’t want any other information forced on them other than that of which moves their business forward.
If they take a college class, it’s not to get a degree! They choose which classes they take, to get the information they’re looking for. I find that the most valuable information to me is found while networking with other entrepreneurs.
The last thing I want is to waste my time and money gathering information, that someone else says I need to fit their mold. A MAJOR difference is, the entrepreneur get’s educated for themselves, and the employee gets educated to satisfy an employer.
Being a successful entrepreneur provides lifestyle options. Nothing is guaranteed, but you at least have the ability to deal with any situation that comes up, in any way you see that benefits your business best. You operate without limitations on business decisions, so you can create any lifestyle you desire.
Employee
In contrast, if you’re the entrepreneur who owns the XYZ company, you can continue to expand and hire more employees (who will have the same lifestyle as the other employees). As the owner your profits continue to grow and so does your lifestyle options. Each employee is there to make the entrepreneur more money, so the employee is a tool to get a desired result for the entrepreneur. I know how harsh this sounds, but it’s reality, and this understanding is a part of setting you free. The great thing about this is, any employee who wishes to become an entrepreneur, absolutely can!
All they have to do is STOP LISTENING TO THE OTHER EMPLOYEES! Life will show you that “you are the average of the 5 people you hang around most”. Taking advice from someone who is not where you desire to be in life, will only get you as far as they are.
Now you don’t have to stop seeing your friends. Just limit your time with them and spend more time with people who are, where you want to be. This is a big difference between the mindset of an Entrepreneur vs Employee.
(Just a quick side note. I have seen all too often that someone within a group of friends will go out and finance a boat, car, house, etc., and next thing you know, they are all trying to keep up. This group of 5 can cause a debt mentality that will ruin you. More on debt here.)
If at some point you feel your friends are being negative toward your dreams, then spend no time with them. Just start surrounding yourself with successful entrepreneurs who can show the way to your desired lifestyle.
Start researching entrepreneurs in the field of your interest and you’ll begin to think like they think, and do what they do. Let me say that again. By reading and following successful entrepreneurs, you will begin to think like they think and take the actions that they take, leading you to greater success.
How Did Others Become Entrepreneurs?
Because of the internet, it’s never been easier to become an entrepreneur. It’s easy to Google exactly the information you’re looking for. By the way, do you think the entrepreneur/founders of Google have lifestyle options?! Would it not be fantastic to have those options as well?
Think of any other company you know of, and it was founded by an entrepreneur. There are also many entrepreneurs that you’ll never even here about. Some of them are rich beyond imagination.
They quietly make more and more money from their own homes. Many times, with multiple online businesses which are open 24/7/365. How big or how publicly known your entrepreneurial venture is, is completely up to you as the entrepreneur.
This is a time that I suggest you also research other entrepreneurs, as well as myself. I say that because it’ll benefit you. It’s amazing how many times I’ve listened to other entrepreneurs’ stories, and got my brain thinking in a different direction.
While their field of interest my not match mine, I can develop a niche way of doing something that nobody else has thought of. You can gain new perspectives from most entrepreneurs in some way.
The Mindset Between Entrepreneur Vs Employee
If you’re an employee, don’t bash your entrepreneurial owner. They are the reason you can sustain your current lifestyle, and if you’re thinking you can just get another job, then go do that, so you are happy.
If you don’t respect your owner and their ability to continue providing you a job. Go find an owner that you respect, and feel comfortable knowing that they can provide you with a job for the long term.
The world NEEDS employees! Without employees, it would be impossible to operate most businesses. Just don’t get a big head about it, because the employee is a tool for the entrepreneur. And if a tool breaks, it gets replaced with a new one.
I’m sure that sounds harsh as well, but it’s still reality (remember, the more your mindset adjusts, the more opportunity is available to you). The entrepreneur is not going to let the company fail because of a broken tool.
My Experience as an Employee
At my last place of employment many years ago, I was great friends with my owner. He treated me great, and I tried to always do the right thing for the company. He always let me know that he appreciated it. But if I had been bad at my job and I was costing him money, I would have been let go. I worked in the best employee/employer relationship possible, yet I was still owned and controlled of my time and income.
It’s vitally important to fully understand the differences between an employee and an entrepreneur, as well as the mindset of making money through Profit vs Wage. An entrepreneur makes a profit, while an employee earns a wage.
“Profit potential is unlimited, while wage always has a limit”. Why you ask? Because if the wage is too high, the profit gets damaged and the entrepreneur won’t sacrifice profits.
The Moral
I personally, heavily lean toward being an entrepreneur vs employee. However, the way I explain their differences is completely fair and true. The reason it’s so important for you to understand this truth, is so that you can live more at peace with your decision of which lifestyle you want to work for.
You’re either working towards your own dreams as an entrepreneur, or you’re working toward your owner’s dreams as an employee. Whom ever is making the final decisions on what you do, is the focus of your efforts. Whoever’s dreams you want to come true, will determine whether you strive to be employee or become an entrepreneur.
