Many people will argue that a job is much more reliable and safer than being an entrepreneur, but they’re wrong! The worse part is that they’ve never really taken more than a second to actually look at the differences, they just assume it’s better. The reality is different. Do you remember that old saying “don’t put all your eggs in one basket”? Well we’ll get to that shortly, but in the meantime just remember that a job means you’re putting all your financial revenues in one single basket, your employer.
But before that, let me give you an example of just how unsafe a job really is. Have you ever been laid off? Has your project ever been terminated early? Have you ever worked for a company that’s been downsized? How about a company that’s closed? What about a company that closes down your department? A company where the business model no longer works? A company that closes your location?
And it’s not just at the company level, what about on a personal level. Have you ever worked with a difficult boss? What happens if you make a bigger mistake one day? What happens if you get sick? What if your boss is not a good person? What about co-workers? The list goes on.
With a job it’s generally you have a job or you don’t have a job. It’s on or off. You don’t have a partial job, you have one or you don’t have one.
An entrepreneur however isn’t so black or white, it’s more of shades of gray. In other words it’s rarely one or the other. You generally have some revenues, some customers. The company makes some money. Unless something catastrophic happens, which affects both the employee and entrepreneur the same way, you generally see an incline or decline in revenues over time. It’s not overnight. You don’t come in one morning to see your business completely come to a complete halt without any warning.
In other words, as an entrepreneur you don’t have all your eggs in one basket. You have multiple clients, they’re just called customers, whereas as an employee you have only one customer, your employer. If you lose that one customer, you have nothing. Zilch. Nada. The big goose egg. It’s over. As an entrepreneur a single loss of a customer isn’t nearly as catastrophic as it is for an employee. Not that you want to lose customers, but the difference is that not everything is tied to one and only one customer.
So let me ask you again, which is safer, being an entrepreneur or being an employee?