Self-employment Vs. The Corporate World

Anyone considering a leap into entrepreneurship must first carefully consider the differences between self employment and employment in the corporate world. Working for yourself is vastly different from working for someone else, far more so than most people think in the beginning. If you are going to be successful as an entrepreneur, you must have a realistic, objective understanding of the pros and cons of each type of employment.

Structure and routine

In the corporate world, there is a great deal of structure and routine. The hours of work are established, job descriptions specify required skills and activities, and there are rules and procedures that each employee must follow. There is also typically a hierarchy of employees, from front line workers all the way up through supervisors, managers, executives and the CEO. The corporate culture and environment is generally established and employees learn to work effectively within that environment. In return, they receive a steady paycheck and often other benefits such as health insurance, access to a 401K plan, paid vacation time, paid sick leave, etc.

Self-employment, on the other hand, is much less structured and routine. An entrepreneur does not have set work hours, and in fact will typically work very long hours compared to a corporate employee. An entrepreneur's job description is rarely written down formally, and the job responsibilities are easily summed up in one word - "everything". Self employment usually means fulfilling the roles of front line worker supervisor, manager, executive and CEO - all at the same time. In return, the entrepreneur receives an uncertain paycheck (none at all, if cash flow is not what it should be), few if any benefits, and no paid vacation time or sick leave.

Managing relationships

Corporate employment involves managing relationships, typically with co-workers and colleagues as well as with clients and customers. Depending on the specific job, though, the number and variety of relationships to be managed can vary widely. There are plenty of corporate employees who spend their time focused primarily on their own job responsibilities. They interact with others when they have to, but often do not actively seek and cultivate new relationships.

Self-employment requires managing relationships, but in a much more central and vital manner than most corporate employment. An entrepreneur must establish and maintain relationships with customers, vendors, financial resources, and legal resources, just to name a few. And even more importantly, an entrepreneur must manage their family relationships in a way that fulfills both the needs of the business as well as the needs of the family. Most entrepreneurs will agree that of all the relationships they manage, those with family are the most challenging and difficult because of the long hours and heavy workload that comes with self-employment.

Self discipline

Working in a corporate environment requires the self-discipline to come to work on time each day, fulfill responsibilities, follow procedures, take direction, and support company business strategies. Most people do all of these things because there are direct consequences (loss of pay, poor performance reviews, loss of job) for not doing so.

Self-employment requires the self-discipline to work hard each day, fulfill responsibilities, make decisions, wear many hats and perform multiple functions. An entrepreneur does these things despite the fact that there is no boss looking over his or her shoulder; these things are done because they need to be done, and the entrepreneur has enough self discipline and motivation to do them whether they feel like it or not.

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