Starting a New Job or a New Company: Which is Easier?

Choosing between starting a new job or a new company can be a daunting decision. Many individuals believe that founding their own company could provide greater financial rewards and independence. However, the reality is that starting a new job is significantly easier than beginning a business from scratch. This article explores the differences and the numerous hidden challenges of running a company.

The Simplicity of Starting a New Job

Starting a new job is a much simpler proposition. When you start a new position, the employer sets the work tasks and deadlines. You do not need to worry about the intricate workings of other departments, nor do you need to master tasks that you are unfamiliar with. Your primary concern is ensuring that you meet your financial obligations such as paying rent and covering expenses.

Additionally, if you are good at what you do, you might believe that founding a company would be the better option, allowing you to retain all the revenue earned. However, it is essential to consider the numerous challenges associated with running a business.

The Multifaceted Challenge of Running a Company

Running a new company involves much more than providing the services or products for which it was created. One of the most significant challenges is marketing. Even if you excel in your field, your potential customers must be aware of your existence. Finding and converting customers requires creative and strategic marketing efforts, and every business is unique in its approach.

Another crucial aspect is administration. This includes obtaining the necessary business licenses, managing taxes, securing insurance, and maintaining the company website. If you have a physical location, commercial real estate and facility management become additional responsibilities. Furthermore, if you have employees, payroll, payroll taxes, human resources, and adhering to employment laws add another layer of complexity.

From personal experience, starting a company, even with prior experience as a CFO, was more challenging than anticipated. One of the biggest hurdles was marketing. Although I was adept at Excel and finance, I knew virtually nothing about acquiring customers. It was only when a YouTube tutorial I made about building an expense tracker in Excel ranked highly on Google that I began to gain visibility beyond my personal network.

Even after gaining exposure through the tutorial, it was challenging to predict which factors contributed to its success. Success in marketing is often a matter of luck rather than a direct result of strategy or execution.

The lack of steady income in the initial years without customers was another significant challenge. Maintaining operations and covering payroll required a well-funded start, leverage from a supportive partner, and careful budgeting. Without these elements, survival could be precarious.

Conclusion

In conclusion, while starting a new job offers a straightforward path to employment and financial stability, starting a new company requires a broader and more complex skill set. Understanding the myriad of challenges involved in running a successful business is crucial for anyone considering entrepreneurship. Before embarking on this journey, carefully assess your readiness to handle the marketing, administrative, and financial aspects of running a company.