Being an employee vs self-employment

[BayView]

Hi Guys,

Just curious to see who on here are self-employed and who are employees. Are self-employed more satisfied? Are the self-employed people wishing they were employees?

Just as a bit of background info, I grew up in a migrant family. Was born and raised here so pretty much an aussie (except on the outside lol) and parents were almost always self employed. Now after being an employee for a few years, I'm re-considering where the future lies for me, I feel I am more comfortable in the hospitality industry as I grew up in it and it's kind of second nature and I therefore I grew up more independently, however, also more self motivated as you had to push to do things yourself. Being an employee in an office is more structured and I'm considering if this is really me or not.

Only be self employed if you can honestly see yourself making shoitloads more than what you'd make as an employee.

Otherwise; the pain isn't worth it.

Folks often say "Oh, I'd love to be my own boss". Pigs arze.

Miss a few PAYE dates or bank loan payments, or getting the phone call form a staff member who is sick and you have to cover their hours - and see who the boss is.

 

[Scott No Mates]

I'm on the midground - I am self-employed & I contract to fill in the voids. Suits me down to the ground. Consultancy is great but sometimes you need some longer continuity or a bigger challenge.

 

[sanj]

ive only ever worked for myself or family, wouldnt have it any other way. my brother has his own business too so i guess it's just something we grew up around.

 

[weg]

Only be self employed if you can honestly see yourself making shoitloads more than what you'd make as an employee.

That's the way I've always viewed it.

I work 3/7 fulltime (and go home and forget about the place) so if i had to work more days than that I would want my income + at least 50% for it to feel worthwhile.

Then again i could get that doing lots of available overtime but don't because I value the time I have not thinking about work. I'd feel no different if it was self employment.

So happy as a PAYE myself.

 

[Intrinsic_Value]

been self employed for the last 16 years.

Wouldn't change anything.

Excelled academically in high school and uni, worked three years in an international accounting firm. By the 3rd year I was ranking near the bottom.
Saw the light, got out and set up my own business at the age of 24.

Never looked back. Within a couple of years I was making the same as a national partner in the said accounting firm (after tax wink wink)

The tax code is written for those that know how to exploit being a business owner, especially for those that operate in the cash industry, but enough said on this.

 

[Colin Rice]

The tax code is written for those that know how to exploit being a business owner

To true and the PAYGs carry the tax burden.

I was an employee for 20 years and all the time felt something is not quiet right.

Once I made the leap to self employment then realized what was missing and had the revelation that I am not an employee but more of an entrepreneur.

It certainly isn't glamorous and I equate the leap like going from kindergarten straight to university so definitely not for the feint of heart.

Helps to have a chunk of change in the bank and/or access to equity before you take the leap so gear up while you are still getting payslips as it will more than likely be several years until you can complete an application for finance with confidence

 

[D.T.]

What sorta biz do you have IV?

 

[geoffw]

If I can get into employment again, I would regard it just as something to support my property investment business and to help it grow.

 

[peastman]

I have been self employed since 1986.

There have been times when I was close to bankruptcy and times when I have made over $1000 per hour.
There have been times when I have thought "Why am I doing this?" and times when I have thought "Why would I do anything else?"

Looking back over the years, it's been great. From the early years of working up to 20 hours per day and not drawing a wage because there was not enough profit to more recently when I just work maybe 10-15 hours per week and draw a full time wage. It's been a learning experience I would recommend.

I have always been of the opinion if no one will employ you for the job you want to do, employ yourself to do it. There are so many opportunities out there just waiting for some one to have a go.

 

[moyjos]

I have been self- employed since 1995 and hubby has been self employed since 1997. We both bought/started businesses in the job we were doing at the time.

I have ALWAYS made sure we have been paid at least the award rate for the job..Otherwise WHY??

We still earn well over what the job would pay if we were to go elsewhere.

We don't really take work home. We don't have an office at home with work stuff in it.. Sometimes hubby will a call from a customer and he will just say "Sorry mate, I am at home, I don't have that info handy, I will have to ring you when I get back to the factory" Never yet had a problem with that.

I could not work mainstream again. I like the flexibility too much.. Oh yeah.. and the tax benefits

 

[Deltaberry]

thats because your parents are cashed up, and can buy expensive businesses,

for the average joe, they have to start small, plus their passion is to actually work in the business themselves, hence that is what they desire

not many people will be fortunate enough to be able to buy/start a 200 seating capacity venue while only doing 5 hours per week

I think they started all the businesses from scratch with very little capital. I don't think they've ever bought a second hand business.

Anyway I think there's a time and place for everything. Right now I'm sort of juggling both (although my business is quite passive, but it pays more than my job).

 

[roe]

not really, sometimes a business is just not profitable enough, whether it be bad economy, bad purchase, bad luck, incompetence, increased competion, etc .etc.

I've met heaps of people that were paying themself $50k for a 60 hour week and making no profits, while people around them said, hire a manger for $60k and even though you make a $10k loss you dont have to work there

paying someone the $60k would free you up from letting the business run him, but he chose not to.

If you look at business on the stock market ..some business model aren't profitable doesn't matter how good you are or how well you manage it.

Have the knowledge to sort them is a very profitable skills

And the super profitable model combine with good management = jackpot return...

 

[Intrinsic_Value]

What sorta biz do you have IV?

My first business was the cafe that a number of other posts have suggested is big no no, yet for me its was incredibly cash flow positive, set it up from scratch and got my money back in just over a year.

However it was a cafe with an angle, not just your run of the mill cafe.

As for hours worked, yes for the first 5yrs I was working around 60hrs + a week, not because it wasn't making money, but because I had most of my capital in it, and working long hours was never a deterent to me. The money was good, and I wanted to keep it that way.

Have kept this business for around 15yrs now, but its now in deterioration mode and don't have time to concentrate on it + times are changing, competition has increased significantly over the years, not prepared to continue to fight a battle that's not worth fighting.

My latest business ventures are with several partners, and we obtain Australian master franchises in the hospitality industry. Much larger sums of capital involved in this, but the ROE are good, and we employee salaried managers. At this level, you are working on your business rather than in your business. Hours worked around 20hrs per week.

Actually my whole business life has been spent in hospitality, that sector that everyone is bagging as an industry where it doesn't pay to be self employed

By the way no specific details will be given, I like separation between my posts on the internet and my 'real life'

 

[Intrinsic_Value]

If you look at business on the stock market ..some business model aren't profitable doesn't matter how good you are or how well you manage it.

Have the knowledge to sort them is a very profitable skills

And the super profitable model combine with good management = jackpot return...

spot on, and I think its because I run my own businesses that I invest the same way

 

[BayView]

My latest business ventures are with several partners, and we obtain Australian master franchises in the hospitality industry. Much larger sums of capital involved in this, but the ROE are good, and we employee salaried managers. At this level, you are working on your business rather than in your business. Hours worked around 20hrs per week.

That was exactly my plan when I bought the workshop...acquire other businesses, pay salaried managers, work 20 or so hours per week working on the business rather than in it..

Still want to do that plan.

 

[moyjos]

That was exactly my plan when I bought the workshop...acquire other businesses, pay salaried managers, work 20 or so hours per week working on the business rather than in it..

Still want to do that plan.

Mine too . Worked really well, I had 2 stores within 3 years. Shame those stores were 1hr photo shops . I was smart enough to see the writing on the wall and sold out before the whole lot turned to a crumbling heap and didn't lose any money, but it certainly changed my life plan .

 

[TMNT]

My first business was the cafe that a number of other posts have suggested is big no no, yet for me its was incredibly cash flow positive, set it up from scratch and got my money back in just over a year.

good for you, I like to hear success stories through hard work and determination esepcially in hospitlaity,

any chance you could tell us if yours is like a subway type franchise or is it something more obscure

 

[Deltaberry]

Mine too . Worked really well, I had 2 stores within 3 years. Shame those stores were 1hr photo shops . I was smart enough to see the writing on the wall and sold out before the whole lot turned to a crumbling heap and didn't lose any money, but it certainly changed my life plan .

Knew someone with a photo shop, used to make a mint. He sold out and bought 3 commercials in Melbourne CBD (on Lonsdale St). Smart move.

Know another guy who owned video rental stores. Used to make a mint. Gave all his money to the casino, and along came bit torrent and youtube. He's now working as a cleaner.

 

[geoffw]

Knew someone with a photo shop, used to make a mint. He sold out and bought 3 commercials in Melbourne CBD (on Lonsdale St). Smart move.

Know another guy who owned video rental stores. Used to make a mint. Gave all his money to the casino, and along came bit torrent and youtube. He's now working as a cleaner.

My dad used to be in the retail book trade. But he got out 30 years ago.

Even then he wasn't able to sell it as a going concern, despite making a good living from it. You had to know it pretty well to do well from it, otherwise you could end up with a lot of dead stock.

 

[TMNT]

I've never understood how second hand book shops operate

High rents
Cheap products
Aalways empty
am aassuming they don't have people bulk buying