Why do we choose to work for ourselves?

Hi Ricky,

Sorry about that.... Here's the question again.....

There are many reasons why people choose to work for themselves.... It'd be exciting to know some of the reasons....

What are some of the reasons that people choose to work for themselves?

Thanks! :)

- Dien

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




Are YOU on the list?... You can be!

one of the reasons should be to allow you to work at what you want to do and enjoy doing.
eg if someone has got a job in say insurance but their passion is mountain biking then starting a business based around their passion will be much more 'rewarding' to them even if perhaps not earning them as much income as the insurance job.
as they spend their time on their passion they will much happier/ contented inside and that in turn will bring more good things to them.
Whilst money is great to have it can also bring its own problems but a passion is just that!

mike Bailey

Thanks Ricky!

Thanks for sharing your experiences with training salespeople, and your observations of their motivations....

It's great to have some info from someone who's had some experience talking to many people about this!

So.... from your response, it sounds like probably FREEDOM would be a stronger motivation than money would be....

What you said about those who buy small businesses (like milk bars in Australia, kind of a small general store) is really perceptive. That is surprising that people would sink quite a lot of money into what is really buying a job....

And not only a job, but a job with much longer hours than your average 9 to 5 job too....

Thanks Ricky for the great food for thought!

- Dien

Dien,

The reason is and always will be like the reason why a working mother quits her job - to be able to really work FOR her children and her family.

Unless you work for yourself you can't really work for/help/love other people.

And forget about "freedom".
There is only "light burden" in THIS understanding.

Simon

Hi Simon,

There are many good answers, and thanks, I believe what you said is one too....

I've read that many women in particular, but an increasing number of men as well, choose to work independently in order to have more time to spend with their families (especially children)....

This is certainly a very important factor why many choose to start a home-based business....

Thanks!

- Dien

dno

> Hi Ricky,

> Sorry about that.... Here's the question
> again.....

> There are many reasons why people choose to
> work for themselves.... It'd be exciting to
> know some of the reasons....

> What are some of the reasons that people
> choose to work for themselves?

> Thanks! :)

> - Dien

Hi Boyd,

I agree with you....

When you work for a company, in general they make a profit because they're paying you less than you're making for them with your skills and labor....

But on the other hand, what you get in return for being an employee is added security about the size of your next paycheck....

I agree with Gordon that employment is great for some people, but it's not for everybody.... :)

I've always admired entrepreneurs since childhood. Kind of the same way I've admired scientists (and then became one).... Back them, I saw both entrepreneurs and scientists as "pioneers" (and I still do)....

Now, I see it goes deeper than that. Entrepreneurs also help create employment and security for everyone else, by taking on the risks themselves....

It's a tough job, but someone's gotta do it! :)

- Dien

... in one simple word...

LEVERAGE!

As an employee working 9-5 for someone else, my income potential is limited by

1: My hourly rate and whatever overtime is at hand.

2: My salary.

I might earn $50,000 a year salary but that'd be it. The only way to increase that would be to receive a promotion.

I might earn $25 an hour. But can onnly work so many hours in the day... even if overtime is available.

Yet, working for myself I am able to leverage that to a degree.

I could hire myself out at $30 an hour... or even $50 an hour... or even $100 an hour.

I could charge a set dollar figure for a set amount of product/service and no precisely HOW MUCH I can get.

I could SHARE THE WEALTH and charge customers $30 an hour and pay an employee $15 hour.

I could...

well, you get the idea as far as leveraging money goes.

Time is the same...

As an employee I can only work the hours available and can only DO what a single person can DO.

As my own boss I can outsource and increase my output.

As a single person I can only wash so many cars a day. But with an employee my business can wash double the number of cars... double the work equals double the money.

LEVERAGE...

that's MY reason.

And as a side note...

you can still leverage your money if you're an employee.

I can take a percentage of my employee income and invest it wisely. Making sure to invest in things which appreciate in value or bring in an income stream. Taking advantage of natural appreciation and whatnot.

Depending on the types of things I invest in, I can allow others to make the investment decisions - such as buying shares in Bershire Hathway and letting Warren Buffett make the investment decisions.

Michael Ross.

P.S. Another way to use leverage is to have one thing fund another. Your income funds your investments which could fund other investment types and so on. All of it begun by utilising your income... leveraging your money and time.

While I can still Leverage as an employee, I can leverage more in my own business.