Jobs Vs. Business: Key Differences And Benefits To Know

By Indeed Editorial Team

Updated 17 December 2022

Published 30 August 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

When you are ready to join the workforce, you can choose to get a job or start your own business. There are benefits to doing each and specific challenges of having a job or owning a business. Learning the difference between a job and a business can help you determine which option best suits you. In this article, we discuss the key differences between owning a business or having a job and share the benefits of each so you can make the best choice for yourself.

Jobs Vs. Business

When you choose a career, you have the option to find a job or start a business. Each option has its advantages and disadvantages. To determine which is the best choice for you, learn how they differ from one another. Here are the key differences between a job and a business:

Investment

Starting a business typically requires a large investment. There is an investment of time you take to create a business plan, work to meet regulations, find a business property, hire employees and perform other tasks you must to start a successful business. You may also spend a large amount of capital before making any profits. Finding business investors helps, but you may still need to invest a lot in the startup of your business.

Finding a job is a must smaller investment. For many careers, it is crucial that you invest in your education so that you can qualify for a job. Your job search also requires an investment of time, but in most cases, this is not comparable to the process of starting a business. You can likely find employment and start earning wages before you earn a profit from your own business.

Related: How To Apply For a Job In 6 Steps (With Tips)

Profit

Typically, your potential earnings are higher if you own a business. As a business owner, you hold the highest position in your company and your salary reflects your responsibility. As an employee in a job, you can earn more depending on your experience and education, but in most cases, you may not earn as much as a successful business owner. In a job, you earn a salary, but business owners can earn a salary and enjoy the profits of their business when it is successful.

However, your income from working a job is more reliable than earning an income from your business. If you come to work in a job, you get paid for your time. If you own a business, you may not see any income until you pay your employees and cover business costs.

Qualifications

Being a business owner does not require specific qualifications. There are many ways to learn how to start a business. You may earn a degree in business management, learn from a mentor, self-teach or hire a business advisor. Since you are your own employer, as a business owner, you can set your own requirements for qualifications from your employees.

Jobs have specific qualifications you must meet in order to work in that position. Qualifications may involve an educational degree, minimum years of experience and certifications that an employer deems necessary in order for you to perform well in a job role. For example, to work as a nurse, employers usually require you to have a bachelor's degree, nursing license and experience in a clinical setting.

Schedule

Another difference between having a job or a business is the flexibility of your schedule. If you have a business, you can create your own schedule and work when you choose to. Sometimes, to have a successful business, you need to devote many hours to operating your business. If you have reliable employees, you may be able to delegate responsibilities and have them help you manage business operations, which can give you the opportunity to work fewer hours and have more flexibility in your schedule.

A job's flexibility depends on your employer, as your manager may choose when and where you work. During the hiring process, you might be able to negotiate more flexible hours for yourself. Although a standard job is 40 hours per week, some positions require additional hours for which your employer compensates you.

Related: Time Management Skills: Definition and Examples

Vision

Vision is a plan for the future that guides a business to achieve certain goals. If you have a business, it operates according to your vision. With a business, you can set and accomplish goals to better your and your employees' lives. For example, you may have the vision to create an inclusive workplace that produces safe and affordable health products for consumers. You may achieve job satisfaction and personal accomplishment by aligning your business vision with your core beliefs and personal goals.

When you have a job, you contribute to achieving another's vision rather than your own. By searching for a company whose values align with yours, you can work in a job to achieve a vision you believe in. If you want to help develop a vision for a business, you could work in a management position and collaborate with the CEO. It may also be desirable to have a job and not have the responsibility of creating a vision for the company. You can focus on your own personal goals and how your job can help you achieve them.

Related: Business Strategy Components and Examples

Motivation

Motivations to work are different depending on if you have a business or have a job. Success and goodwill are common motivational factors for business owners. Creating a brand and growing your customer base also motivates you to work hard. Earning a profit is also a top motivation for completing tasks and performing all your job duties to the best of your ability in order to achieve success.

If you have a job, employers use your job performance as a basis to give rewards to motivate you to continue to do well. Common motivational factors for employees include raises, promotions and bonuses.

Related: Types of Motivation for Career Advancement (With Examples)

Growth

Having a business allows you to achieve growth in several ways. You can grow your business by expanding the consumer base or your product line and then get a physically larger space to operate your business. If you are successful, you may achieve growth by opening another business or adding a business location. Professionally, you may get opportunities to consult for other businesses or speak at conferences.

In a job, your growth depends on promotions. You can develop professionally by earning certifications and pursuing higher education and other learning opportunities. Your opportunities to grow include earning a promotion to management.

Benefits Of Having A Job

Pursuing a job rather than starting a business can offer many benefits that you can enjoy immediately when starting a career. People choose to work in a job rather than starting a business for several reasons, many of which relate to the ways a job benefits you. Here are benefits to consider:

Opportunity

Working in a job role, you may receive an opportunity to develop your skills and contribute to achieving company goals. Throughout your career, you may also have the opportunity to grow and receive new responsibilities or promotions. Being able to advance within a company or career can keep your job interesting and fulfilling.

Less responsibility

Many people choose to get a job and work as an employee rather than owning a business because it can be less stressful with fewer responsibilities. As an employee, you are only responsible for your own success and job duties. This can provide you with a better work-life balance and help you focus on other priorities rather than the business where you work.

Professional development

You may choose a career because of the opportunity to develop professionally throughout your career. Sometimes employers provide tuition assistance so that you can pursue higher education. Many jobs also offer training so that you can develop your skills and advance your career quickly. Professional development can lead to an increased salary and more job opportunities.

Benefits Of Owning A Business

If you want to make business decisions and choose your own schedule, you may want to start a business. This can be a more challenging path because of additional responsibilities. Being a business owner offers these benefits:

Authority

As a business owner, you make decisions for yourself. This offers you more authority and autonomy at work. If you enjoy leadership roles and have a solid business idea, starting a business may be a good choice for you.

Flexibility

Many choose to own a business because it offers flexibility. You can choose your work hours, including how much you work. This is a valuable perk of being a business owner and can help you obtain a work-life balance. Balancing time between your business and personal life is important to achieving overall happiness.

Experience

If you start a business, you can gain experience in fields such as management, finance, marketing, production and human resources. This experience is valuable for professional development and increases your opportunities outside of your business. For example, if you change your mind about owning a business, you may be able to sell your company and find a senior-level role at another company because of your experience.

Related:

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  • 17 Business Questions To Ask When Starting a Business

  • What Is Business Intelligence? (With Techniques And Uses)

  • Essential Business Acumen Skills: Definition And Examples

  • Business Analyst Skills: Definition and Examples

  • How To Crack A Job Interview

  • How to Get the Job You Want

  • Guide: Using Indeed.com Job Search


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