- What Is Business?
- What Is a Job?
- Differences Between Job and Business
Many times, fresh graduates are in a dilemma when it comes to deciding between taking up a job or starting his/her own business.
When it comes to the question job vs business which is better? – you must understand job vs business differences, the advantages and disadvantages of jobs vs businesses, and all the details involved before deciding between the two.
We can start by understanding what is a business as opposed to a job.
What Does Doing Business Mean?
When it comes to your own business, there are two types:
1. Family Run Businesses
Family run businesses will already be running with fathers and forefathers at the helm of affairs. It may seem a bit easy for fresh graduates to join a family-run business because of the mentors that are already present in the business.
You might get easily trained without much effort. However, it is not as easy as it looks. While the business may have been running for generations together, the responsibility to take it forward completely rests in your hands.
The pressure of keeping the business going, expanding, and modernizing the business may be your sole responsibility.
2. Start-Up Business
A start-up business is yours and only yours. There will be no forefathers to guide in the business. A start up business is your venture. You are your own master.
What Is a Job
In this context, a job can be defined as working for others for a salary or payment in lieu of the work performed. It means you work for another person and this person pays you a coinciding amount for the work you have done.
So, Job vs Business – Which Is Better?
While there is no right or wrong or better or worse, each one comes with its own advantages and disadvantages. After reading this article you can decide for yourself what is best suited for you.
1. Risk Factor
There is a risk factor when it comes to job vs business. While in a business whether it is a start-up or family-run business, you tend to invest your own money to keep the wheels of the business moving.
These investments may go into your personal funds without a guarantee of equitable returns. However, most of the time, good investments lead to surplus profits in your business leading to a surplus.
On the other hand, there is a slightly lesser risk when it comes to working in a company. For one, the investments do not come from your own pocket.
2. Work Schedules
While both, doing business and working in a company requires hard work and long hours of burning the midnight oil, the two slightly differ in their schedules.
For example, when you work in a company you might have a 9 to 5 job with a few extra hours here and there on busy days.
Whereas in a business your hours or work schedule may not be fixed. You might have longer days than some on a few occasions.
3. Social Life
When it comes to your social life there might be a big difference between a job vs business. When you work for a company, you may have colleagues that you can spend time with.
You can interact during office hours and can meet after the office for social visits. Whereas, in a business set up of your own, you might not have many colleagues as it is your own venture.
Even if you partner up with a few, you might have fewer colleagues than when you would have had if you were working in a company. This may not be a total disadvantage because you can always make friends from outside your workspace.
The amount of income you earn totally depends on what business you do or what job you have. While both can earn handsome amounts, there may be a slight difference when it comes to earning profits
In a business, you directly benefit from the profits you make in a year. The profits in your business are totally yours to decide what you want to do with it.
You can put it back into the business as an investment, share it with your staff or totally enjoy it yourself. Whereas, when you work for a company, the company makes profits, while you earn a fixed salary.
However, many companies share the profits of the company with staff and employees by way of bonuses and appraisals.
5. Educational Qualifications
One of the major points of discussion in a job vs business debate is the educational qualifications required. It is a known fact that there is no specific educational qualification required to join your family business or start your own business.
However, to get a job in a company, you require a specific educational qualification or certain skill set.
While this may hold true in certain cases, it must be noted that educational qualification is important whether you are planning to start your own business or look for a job.
Education is a powerful weapon that you can armour yourself with. Educational qualification is always an added advantage whether you are doing business or working in a company.
The goal you have for your business is your own. The ultimate aim of the business is what you have planned and thought of. Whereas, when you work in a company, you work towards the goal of the company and not your own.
It is a different matter that when you work for the goal of the company you also fulfill your own life goals in the bargain.
In a business, we can say that you are your own boss. You wield authority in your own business. Whereas, in a company, you have lesser authority when it comes to decision-making because the decision lies with the management or the Board of Directors.
7. Ease of Returns
Comparing jobs vs own business, the ease of returns in a business is tougher than when you have a job. What we mean to say is that it takes years to establish a successful business.
Business establishments that click in the first year may be lucky. For all other businesses, it takes years to establish a completely successful running business.
It may take years before a business can earn profits. Whereas in a job, you earn a salary right from the month you join the company.
8. Motivating Factors
One of the job vs business differences is the motivating factors between the two. In a business, motivation can come in the form of goodwill whereas in a job motivation is usually monetary.
You can motivate employees in a company by offering monetary incentives and raises in salaries. This difference is evident because of the attachment a person has to his/ her own business.
Whereas, in a company, employees will come and go, seeking bigger and better opportunities in other companies.
In the job vs business debate, one of the points often raised is that in your business there is no possibility of promotions. While this may be technically true because you are your own boss and there is no one higher than you in your business, promotions can come in the form of bigger office space, expansions, and diversifications in business.
On the other hand, promotions in a company almost necessarily mean a promotion in your position in the company, for example from assistant sales manager to Head of sales.
Though both jobs vs business, the responsibility to perform is always high, but the sole responsibility to perform is lesser in a job.
The company will still run and function even without your performance. However, in a business, you have the responsibility of running the business. Without which the business venture may not make profits.
Job Vs business – which is better? Like we said earlier there is no better or worse when it comes to the job vs business debate, but there are certain factors that can encourage you to go in for a job and there are other factors that can motivate you to start your own business.
Termination of services is a big job vs business difference. In your own business, you cannot be terminated from your services because you are the main person in the business.
Whereas, in a company, if you underperform, there is a chance that your services may be terminated from the company.
From the above, it is clear that both, looking for a job or starting your business has its own advantages and disadvantages.
What we can be certain about is that both require you to perform to your maximum in order to be sustainable.
Also, it is not impossible to start your own business after a few years of working in a company and vice versa. You can get the best of both worlds, by experiencing both.