How Secure is Your Income?

Do you think being an employee is more secure than being an entrepreneur?

Source: businessaccent.com

During my workshops, participants often tell me they need to have job security. They are implying that the entrepreneurial lifestyle is not for them.

But which has more risk?

As an employee, you have one source of income from one set of customers. When you get fired, life becomes chaos.

As an entrepreneur, you have many customers. When you get fired by one of them, you have lost a customer. It hurts, but it is not usually chaos. Sometimes we even prefer to lose customers and might even recommend they do business with a competitor who can serve them better.

The Small Business Failure Rate

I know, there are tons of stats about small business failure rates. But when you look under the hood to see why a business failed, you usually find poor business decisions. Often these poor decisions are related to acquiring debt. Grow smart and debt free and your success chances are better than your chances of not getting fired as an employee.

I am not suggesting everyone quit their job and go it alone. I just want those of you who have had the security thoughts yourself to consider if you are right or wrong in your thinking.

Is an employee really more secure than an entrepreneur?