19/02/2024
The third series of the difference between self employed and business owner.
The business owner has a plan for the business, a true business owner has a business plan irrespective of the size of the business either small at the inception, they are already thinking of the eventual nature of their business, how it can grow, how distinctive is the business from others and the ultimate success of the business and what to do with it.
The self employed is more concerned about seeking income and job security than growing and development. Because in financial difficulties like the current situation, many people are generally driven to start their own business because jobs are scarce and it appears to be the best idea or option in order to secure themselves.
The business is seeking appropriate returns on investment.
The primary focus of the business owners are looking for an appropriate return on both their capital and time. The business owner takes considerable risks. By contrast, many people who are self employed are selling their time and skills in order to gaining an income for living. In addition, they are aware of the paid employment and others benefits such as sick leave with pay, health care, redundancy provision, retirement income etc.
Business owners are aware of the opportunity cost to the self employment benefits, they know what could done with their time and money that is invested in the business. Self employed are seeking for wages, the business owners are looking for more than wages to seeking returns on their investment comparable to their capital, time and skills investment in the business.
Watch out for more series on the subject on the difference between self employed and business owner, enjoy a lovely and productive business day, cheers!