When I talk to people about franchise ownership, a common question I get is “What about the risk?” Particularly for people in high-paying, supposedly secure corporate jobs, entrepreneurship can seem like a dangerous unknown. I get it–I’ve been there. I made the leap from corporate executive to small-business leader to entrepreneur over the course of just a few years. It wasn’t easy. But then, worthwhile experiences rarely are. As I’ve shared before, I greatly prefer entrepreneurship to employment and find it to be one of the most empowering choices I’ve ever made. Here are the key reasons why.
I Make the Decisions
As a corporate executive, I had the illusion of control. I had a huge budget at my fingertips and the authority to make big decisions. But I was never the ultimate decision-maker. My authority was always second to a VP’s or the CEO’s. And even the CEO had to answer to the board and the shareholders. No matter how high-ranking, an employee always faces the risk that a downturn or some strategic shift will eliminate their position. And especially for high-ranking employees, who tend to have many years of experience under their belts, ageism is another risk on top of that.
As an entrepreneur, however, I have full access to every detail about the business. In a downturn, I’m not left in the dark, wondering how someone else’s decisions will affect my job security or the viability of the business. I have the authority to course-correct based on my knowledge and experience. And when things start looking up, I can move as quickly as I want to seize opportunities for recovery.
I Make My Own Raises
A stable income is a wonderful thing–until it isn’t. Aside from the risk of layoffs or pay cuts, even the most generous and profitable organizations have caps on compensation. No company pays limitless bonuses or commissions. And the more secure a job is, the more rigid the pay structure tends to be. Highly stable government jobs, for instance, often have predefined pay ranges and rules that limit the situations where managers can give out pay raises or promotions.
As an entrepreneur, however, I make my own raises. My willingness to work and to put my skills and experience to use are the only limits on my pay. I have the freedom to grow my business as large as I want it to be. My ability to manage it is my only constraint. If I want to earn more, I learn what I need to learn, or I keep expanding or looking for clients until I reach my goal.
I Reap the Rewards
Employees come to work every day, and the fruits of their labor fill the company bank accounts. When an employee invents a new product, solves a problem, or creates a more efficient process, the company reaps the long-term benefits of that innovation. In return, employees receive a small fraction of the wealth they create.
Do executives make a lot of money? Absolutely. But it’s no coincidence that the highest-paid among them receive much of their compensation in stock (i.e., an ownership share in the company). And think about the names you see on the Forbes billionaire list every year. They’re not employees–they’re business owners or the heirs of business owners. That’s because, while entrepreneurs do carry higher risk, the value we create comes back to us. When we use our skills and knowledge to grow our businesses, the resulting profits fully belong to us.
I Have Flexibility
As an employee, I had to keep the schedule my employer required, regardless of the rank I held. Moving up the ladder required me to move my family around the country and even across the world, and I put in many more than 40 hours per week on the road and in the office. Even when I had operational freedom, my goals and responsibilities were still set by the company. I had to serve a company mission and follow company rules.
With entrepreneurship, however, I have full freedom to organize my schedule and direct my business. As an executive franchise owner, I only have to invest a few hours a week to keep the income flowing. And as a consultant, I can work whenever and wherever suits me and my family. I have the freedom to choose a vision and strategy that interest me and goals that keep me engaged. Most importantly, the definition of success (and the work required to reach it) is up to me.
For some people, the relative steadiness and low risk of employment make up for the constraints on income and professional freedom. I’m not one of those people. For me, the limitless income potential and ability to write my own story make up for the increased risk of entrepreneurship. If that sounds like you, and you’re feeling constrained by the limits of the corporate world, schedule a call with me or someone on my team. We can help you take the first step toward freedom.
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