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Owning a business has a certain appeal. Granted, some of that appeal can be romanticized, as people focus on the positives like flexible schedules, potential for revenue, and control over the organization. The truth is that business owners have some perks but they must also content with the fact that they have to continue to produce revenue. Otherwise, the business could fold just as quickly as it was started. Business owners are caught in a constant battle between getting the work done that they have, and searching for new work when the current jobs are done. Therefore, there are lot of particular reasons that people choose fixed income over owning a business.

PREDICTABILITY

One reason that people choose a fixed income over owning a business is that the money, benefits, and work situation is predictable. They may not experience quick growth from year-to-year, but they can plan their income and expenses over a period of time. For some people, that predictability is reason enough to go with a fixed salary. It may not be very exciting, but some people are definitely not looking for excitement in the vocational realm.

LOWER RISK

Another reason that people choose a fixed income over owning a business is that they perceive it to be a lower risk. Granted, anyone can lose their job at any time. But, in a lot of organizations there isn't a major risk of losing a particular job, as long as the business continues and the individual continues to perform at a consistent level. In most situations, people can handle this level of consistency. With a business, there is always a risk that the company could go "out" of business.

WHAT TO DO?

The reason that some people do not start a business is that they simply have no idea what sort of business they would start. They may have particular interests and skills, but oftentimes they do not add up to enough ambition or market need to start an entire business. Many people go to school and study, but they don't necessarily have great ambition to start their own business. Typically people that start businesses are trained in particular trades, have certain skills, or have always had a business model in the back of the heads.

Running a business suits some people very well but it isn't for everyone. Some people enjoy the lower risk, the predictability, and the stability of a fixed salary in a "steady" company. It may be boring, but for some people boring is just fine.

Learn more about this author, Todd Pheifer.
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