by Clint Daniel

Created on: November 05, 2009

Employee owned businesses are coming up all over the place, but that raises a question, are they better than a traditional business? I believe so, but it isn't enough for me just to say it. I'll have to give you reasons as well as my point of view on the situation. Employee owned businesses are better than traditional because, the employee has spent time in the business already, learning the ins and outs of the trade. A traditional business is started by a single person that doesn't know what is right or wrong about the thing they're marketing. It is a better decision to work under someone that knows what their doing, then start your own business when you're ready.

Employee owned businesses are getting started because of the economy failing, and people are trying to earn their own income. Although they want to start their own business, it takes a lot of money to start it up, and if you have a stable financial background, such as a business, you'll be more likely to succeed. Not only will you have a steady base of start-up cash, but you'll have the knowledge and know how to be much more successful than if you start up your own business yourself with no back-up. A new business is one of the biggest investments you'll have. It takes years of planning, but there is nothing better to use as planning than experience.

Traditional businesses are started by individuals that have no experience or very little in the field-they learn along the way. Not only do they have little experience, but they invest their own money into the business, meaning failure loses all of their money. If they started with an employer before, branching off afterwards, it would allow them to keep their own money out of the equation, relying on the money from an investor. Also the investor is someone trusted and known for many years, the investor for a traditional business is usually a random association formed from a friend or colleague. If they fail they have to pay all the money back to the original investor, lest they suffer a horrendous legal battle.

I suppose the lesson to this is, starting your own business, no matter if traditional or of a former employment, is all about finding the thing that suits you the best. People try everyday to start a business, but it takes experience and devotion, starting a financially stable business.

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