Why do we choose to work for ourselves?

Hi Dien,

Believe it or not, one of the most common reasons for many who decide to become self employed is
FREEDOM OF ACTION .... Not money.

Many go into business for themselves for the wrong reasons.

The ideal reason one should have for starting a business from a financial standpoint, whether becoming self employed or even a salesman working on straight commission is to be able to earn more than what they could have got or are getting working for a boss. Earning a wage PLUS a PROFIT to allow their business to grow.

By "Freedom of Action" I mean doing what you want, when you want. Not having a boss looking over your shoulders, or having the regime of having to "clock in" and "clock out" each working day. The freedom to make your own business decisions and succeed or fail by your own course of actions.

Over the years I've trained many salesman who joined my father's company. All were "free agents" working on straight commission, and thus self employed. We supplied them all the leads every day, they just had to work the appointments at their own selected hours, etc.
Over a 20 year period, we saw over 500 sales people come and go. Some were good and earned huge commissions, others could not even earn a juniors wage sweeping the factory floor. Many were previous wage earners who after many years in the workforce had become "burnt out" and really wanted a change in pace, and easy way out.
They could no longer hold down a 9 to 5 job on hourly wages, they saw that as "work prison".
Many took on the sales jobs with us, just to "justify" to their wives that they had got themselves a "job". Wives who worked, and really were the breadwinners in the family. These men were working in these straight commission and easy to get jobs, with no real cost to the employers because they felt "guilty" if you can understand.

From those 500 or so self employed salesmen, we found that freedom of action was the main reason they took on the job, the money they could earn was secondary. In fact, we found that many would have been happy to take a basic retainer and small commission on each sale (more security) rather than earning big commissions only when they made a sale.

Then I look at people who buy themselves a small business, like a "Milk Bar" (A term for a small shop in Australia which sells magazines, sweets, milk, bread and basic food items). They are quite proud that they have bought themselves a "business"... But in many cases all they have done is bought themselves a job. They work from 7.00am in the morning to 9.00 pm or so at night, 7 days a week, often involving the whole family to take the shifts. And at the end of the day, they end up with little more than WAGES... Wages they could have got working for a boss in many cases. For the "wage" they make, they have had to mortgage themselves to the hilt to buy the business, pay high interest to service the loan, and take on all the worries a business has.... And for wages only. But they do it so they can be their own boss and enjoy freedom of action.

If you go into business for yourself on a full time basis.... Then go into a business for the right reasons. If it's not going to pay more than you could have got in a salaried position in the long run and involves a big investment to "buy in", then you have to question if it's all worthwhile.

Warmest Regards & Success

Ricky Higgs




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