Which one sounds better being your own Boss or reporting to your Boss? Obviously Being your own Boss sounds much better, but remember practically both of them come with their own baggage. When one goes through a process, only he gets to experience the best and the worst it offers. If you want to know what is better a job or business, let us help you see through both sides and decide it for yourself.
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What is better job or business?
Let us get this right, the ultimate purpose of taking up a job or a business is to get high monetary remuneration so as to fulfill all your needs. The word high monetary compensation may hold different values for different people depending upon their financial background and ambitions. Being able to maintain a good lifestyle is the expected outcome. Choose either one of them just be sure to nail it.
Let us look at the bright sides of doing a job as well as doing a business. Remember the merits or benefits of one would automatically become demerits of the other and vice-versa.
Why is Job better?
Who does not want a high-paid job? But does everyone get one? In India, 80+ lakh students graduate every year, while only 42% of them end up getting a job, of which 35% end up with a pay scale of fewer than 3 lakhs per annum. Apart from the students, there are a lot of job losses, especially during covid, which adds to the total number of unemployed populations. But those who get high paid jobs actually get to experience the below benefits:
- Fixed stable income
A salaried employee gets a fixed salary every month, with exceptions to those who are in the target-based jobs. Even for them, their fixed salary is stable but it varies depending upon their targets, which is still known. There is transparency in terms of the yearly salary package. Irrespective of the company’s performance the employee will be entitled to a basic fixed salary as promised. This ensures financial stability to the employee as well as his family. The employee can pre-plan his expenses and avoid any cash crunch.
- Rewards & recognitions
All the employees in the job are eligible to get rewards and recognition based on their quality of work. Bonus, hikes, promotions, rewards in cash, or kind helps keep them motivated. Employees feel valued and it helps them to get that extra money or comfort in life.
- 9 hours shift
Job has a maximum of 9 or 10 hours of a shift. The timings might vary but the hours are limited. After the hours you are free to enjoy your personal life. If you extend due to business requirements you are entitled to get overtime pay over and above your fixed pay.
- Take-home salary after tax deduction
All the companies deduct taxes and the take-home salary credited to employees’ accounts is full and final after all deductions. Taxes are calculated based on the proof of income submitted b the employees to the employer. This leaves no burden on the employees to pay tax for the complete year.
Employees get a specified number of leaves including casual leaves, earned leaves, and sick or medical leaves in a year. In case they are sick, they may take off from work, without any job loss. They may take casual or earned leave whenever they need family time or rejuvenating time. The employee enjoys 5 or 6 days working in a week, with offs on holidays.
- Retirement planning through PF
The take-home salary of employees excludes the PF amount contributed to the PF account along with the employer’s share of contribution. This PF account though can be withdrawn before but it is supposed to be intact till the retirement of the employee. This serves as a retirement amount for the employee to take care of personal expenses.
- Medical facilities
Employees avail medical facilities like health insurance and dental insurance for themselves as well as for their families. Any health issue treatments, surgeries, maternity expenses, or covid treatment and vaccination expenses are borne by the employer’s insurers. This is one of the best advantages of being in a job, as medical reimbursements or cashless transactions help employees to lead a stress-free life.
- Switch jobs
Employees are always free to switch to better-paying jobs. They have the liberty to choose. This helps them to increase their salary package and climb up the career ladders. After all, employees are always in search of jobs that fulfill their requirements; thus, they choose the one that is apt.
We have looked into the benefits of the job, but does that answer your question of what is better a job or Business. I guess not, so keep reading to know the benefits of owning a business now, then compare and contrast to decide further.
Why is Business better?
Want to run a business of your own? Everyone wants to experience the feeling of being their own boss. Well, it sounds very fancy, but comes with its own problems. In India, 70% of start-ups fail every year. In 2021, over 2250 start-ups were formed, while the percentage increased by 10% every year. Having said this, some businesses which once started as start-ups have created empires. There are a lot of advantages of starting and owning a business as mentioned below:
- Be your Boss
No more reporting to someone else, no more flattering or buttering others, as you are your own boss. You enjoy power, authority as well as responsibility. It is you who decides how to run the business. You become the decision taker. If it’s a success the credit goes to you, else you take the blame. Everything revolves around you, thus putting you in a tight spot. However, still running your business gives you that spark or punch in life to wake up with a new hope every day.
- The high reward for higher risk
Business is far riskier than a job. Obviously, the reward will be higher for taking higher risks. When you invest your time, money, energy in business, and it does well, then the money that you make out of it is huge. There is no upper cap on the amount of income generated through business, while in job your earnings are capped. The income will never remain constant month on month, it will fluctuate based on market demand and supply.
- No tax deductions initially
A salaried person receives a salary after-tax deduction, while a businessman will take the whole chunk of money home. Businesses will pay taxes usually after a quarter or yearly based on their convenience. They tend to enjoy keeping complete income till the taxes are paid.
- Flexible working
There are no fixed timings in business. Businessmen usually delegate the work to their employees, while they focus on running the business. There is no particular number of hours that should be spent on one’s business, the more you give the more you get.
- Create employment
Since you own a business, you create employment opportunities. You become the employer and help to solve unemployment problems. Creating jobs, employing people, helps to create a livelihood for others. You get a chance to change others’ life and that is priceless.
- Create income sources for generations to come
Business if turns out successful and sustains for years will serve as an income-generating source for generations to come. It may pass down from you to your children, then to their children, and so on. It becomes a valuable ancestral asset to pass down the generations.
- Invest in you
The business represents you, the more time, energy, and money you invest in the business the more fruitful returns it will give. You will never feel tired because ultimately it’s yours. Whatever you do at the end is for your business, thus you know that you will reap the fruits later on.
For You what is better business or Job?
Choose the one that suits you. Not everyone is made for business, the same holds true for a job. It totally depends on your thought process, abilities, skills, and individualistic approach. Choose what is best for you. But whatever you choose just make the best out of it. Let us help you to know if you should go for a job or business?
Introspect yourself, understand what you are good at. Whether you are introvert, or extrovert, calm or hyper, interactive or reserved, challenging or routine person. Once you know yourself well, the decision will become much easier. Business needs customers, customer attraction requires huge interaction. If you are street smart, love interaction, practical then the business is the right one for you. If the studious, more theoretical, and routine person then goes for a job. Again, these might differ based on the kind of personality traits you possess.
- Risk appetite
Love to take risks, then try your luck in business. Those who do not have the capacity to take higher risks in life, stick to jobs. Business is way riskier than a job. There is no fixed profit guaranteed. It may become successful or fail. Job offers stable income every month, though there is a risk of job loss, that is still a chance to find a new job. Whereas switching to another business is an extremely costly affair, not everyone would be able to take another shot at it.
Business is like sowing a seed, nurturing it for some time before it bears fruit. The time may vary from some months to some years. However, you need to keep trying hard to make it work. In a job, you start earning from the very first month. If you lack patience then the business is not your cup of tea.
- Keep learning
Business needs constant learning from surroundings, market, past experiences. If you stop improving, the business might collapse. Constant learning is the key. Whereas in the job, when you get experienced, you may tend to get into your comfort zone, it will not affect your earnings.
Businessmen need to keep exploring and experimenting with ways to improve customer satisfaction. Introducing innovative features, providing better quality products or services will provide a competitive edge to the business. While in the job, even if you want to switch, you may search for a job in which you already have experience. There is less scope for experimentation.
First understand yourself, before taking the big leap. Choose the one that suits you as a person. Keep your ambitions high to make them big.
Job vs Business
Below are the differences in Job vs Business.
|Stable fixed income
|Highly variable income
|Upper cap on income
|No, the sky is the limit
|Tax deductions on take-home salary
|No, pay later
|Take leaves without loss of pay
|May result in loss of pay
|Switching job is easier
|Switching business is way difficult
|Provided by employer
|Pass on to generations
|Dependent on employer
|Dependent on employees
|5 or 6 days a week offs on holiday
|No fixed offs in a week
|Education is mandate
As per the economic survey, India ranked 3rd in terms of the number of entrepreneurs and start-ups being formed in India.
What do you think, which is better a job or business for you?
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