Owning a business V.S Working on salary basis

As an accounting student, working for one of the Big Four accounting firms (KPMG, PWC, E&Y and D&T) was a dream job for me. Not any more. I did my internship with a big 4 firm and found out what it was like. Long hours, spending most of your time staring at the lap top screen, figuring out what documents are required, then figuring out who to contact regarding the documents, then arranging an appointment with the right people at the right time and obtaining the right documents. Successful! Not. While doing all this you have to sure your client understands what you are looking for, other wise go through another round of fixing an appointment. Mostly, the error is on the client’s side. A client may not understand what you need and may provide you with the wrong stuff, or a client may understand what you need and still provide you with the wrong stuff or a client may not provide you with stuff at all. There is another possibility, a client may provide you with the right stuff but you realized you are going to need something different. And even when you got what you needed, that was by no means the end of it, you still needed to go back to the client to help you decipher the codes in those documents. For example, one of my clients had 55 bank accounts in 17 different countries. I had to collect bank statements for each account. As an auditor you have to be able to figure client business and be on top of things.

My last client was unbelievable, we had to explain them their business, the do’s and don’ts, the regulations, penalties etc. I even overheard a conversation between my senior manager and controller where my manager was furious at something the controlled had told him. I heard my manager using the word “Fraud” and later on found out the client hadn’t disclosed 5 billion dollar debt that they somehow reasoned did not need to be disclosed on current year statements. They thought business was all about making profit, hell their cash went from 6 billion to 13 billion in less than five months they didn’t give a damn about regulations. They said that’s what we were there for. They mistook us for consultants. Funny their consultants sat in a conference room next door.

My partners, senior managers, managers, seniors were nicest bunch of people I have come across. They were very helpful; they kept telling me how they had taken beating when they joined the firm. It takes a very different kind of person to stick with the firm for 10 – 12 year and become a partner. Only the weirdest of the weird, the nerdiest of the nerds and fairly intelligent people can stay in this business for long time. They were fun to work with and they really loved what they were doing (excluding everyone down from seniors to staff) If it was not for the people I worked with, auditing would have been impossible. We had happy hours 2/3 times a week; yeah after 12hrs of work even a rowdy club was soothing. Some days would be longer than others. Some times I had to work weekends. But it was all good, I was getting paid overtime. My managers and seniors kept reminding me I was making more on hourly basis than what they made.

Yeah Long hours and good money, but I am not very excited about starting full time. I want short hours and even better money. I have decided to stick with the firm, get some experience and move out. Perhaps 2-3 years experience with a big 4 firm will get me a nice job. Did I say “nice job”? So I ask myself, “Would I want to take my senior manager’s job who will become a partner in a few years?” and the answer is sparkling clear. “NO!” See the only difference between a not so nice job (like staff accountant) and a nice job (like senior manager) is that one is making more money than the other. Both are working 12 hours a day, and chances are that senior manager is working even more (my senior manager worked 12-16 hrs a day). There for I wouldn’t want a “nice job”. I do not want to make $100,000+/year if I have to work 12 hours a day. I would rather be satisfied with $65,000/year and 7hr workday. But that’s not possible we all know. All jobs require 10+ hours from employees. So I am doing away with the idea of working on salary basis. If I am working on salary basis, then no matter how much money I make I am going no where but to work from Mon-Fri, 8am-9pm. What would life be like? That’s a rhetorical question, I already know the answer.

I want to spend less time at work and more time with my family and at the same time provide decent living to my folks. The only way I can do that is by owning a business. However small that may be, I would be in charge, I would spend as many hours I wish, and I could take a break whenever I wanted to. The mere idea of owning a business is so tempting. So, for the past few months I have been thinking about ideas and will continue to do so for the couple more years (that’s when I plan to leave the firm).

Feedback would be appreciated. Any successful businessmen here? Tell me what you think of a 24 year old wanting to start his own business.

Re: Owning a business V.S Working on salary basis

I have never owned my own buisness and neither do i work outrageously long hours. I work M-F, some weekends if we have a tight deadline. Long hours are only in the pic when there is a deliverable due to the client. I dont make much money either but i love my job. I like the people i work with and i admire their skills. I would like to learn a thing or two from them about management if i could.

Like i said, i have never owned my own buisness. BUt i know people who do. And i personally dont like the whole 24-7 on the job routine. I like to have my time off, weekends with family and all. Vacation once a year is good too. With ur own buisness you have no time off whatsoever.

Re: Owning a business V.S Working on salary basis

Owning a business is not that easy either. Its as demanding as any other job. Sure there would be no one bossing you around but its highly unlikely that you would be able to take a break from work whenever you feel like. Paying even a couple of employees from you own pocket ensures that you take more interest in work, stay more vigilant and care for the work more in general. Of course, things vary with the area of business that you choose.

My father is a business-man and has run highly successful construction companies during his career, providing us with an excellent life style ... but as far as I can remember from my entire childhood, he was always working and travelling. Sure he earned a lot but never took a break from work. (Still doesnt do) You could say its his personal style. This thing varies also.

Actually, the question you have asked here, is something that I have been perennially confused about too. I have been forever torn between the business v/s the job decision. Its been three years since I graduated and haven't joined my father in his business. I just feel that it kind of limits me into one area of work and one region of the world.

I have also been running my own business on the side since the last one year. I slowed it down a bit recently because it was becoming too hectic, my job was getting effected and I was left with no time to do anything else. I would go to my job in the morning. Then during the lunch hour I would visit my personal office to check the work of my employees, check business emails and make calls. During the evening, I would once again check on my employees' work and visit prospective customers. The thought that I have to pay the salaries of my employees at the end of the month, made me go the extra mile to ensure I got enough money-making work for them.

Kher, this is my personal experience and a challenging one at that. Going towards business is a good idea if you like to be dependent. Personally, I think this decision is influenced more by the desire to earn more (which is not a bad thing at all). In general, business is too tight and competitive these days, with all the cost cutting trends and success of third world countries in coming up with cheapest of the services. This fact makes me think that probably targetting a top job is a more realistic aim than starting a new business (ok, unless its an idea like Google, Yahoo or Ebay).

I am sure I have never written such a long post on gup ever!

Re: Owning a business V.S Working on salary basis

Running a business can be hectic but it all depends what kind of business you are into. The very reason I want to start my own business is that way I would be able to spend more time with my folks and of course make more money. **I am thinking about a business on small scale that’s capable of yielding considerable profits. Kind of like a one man show where I am the brains and someone else bones and muscles. Take restaurant/food service for example. I will rent a small space at the university cafeteria and open up a Gyro Box and have two Mexicans make Gyros from 11am – 6pm. I can do the same at other universities in neighboring cities. I will train those Mexicans; I know what they are capable of since I have worked with them. Then all I will have to do is deliver raw materials to those locations everyday and collect money late in the evening. Don’t laugh, that’s just a prototype, just an idea. I have worked at a restaurant and know the costs and profits associated with food items. Costs are nominal and profit margin is high. Plus Gyro is like a delicacy, something people like and those who haven’t tried will most probably like it too, something that is not easily available close to campus. There are a few Lebanese restaurants that serve Gyros but those restaurants are upscale and far away.*As far as employees are concerned, if I ever had employees, they would be either fresh sophomores or unskilled workers (perhaps Mexicans). Think about a Real Estate agent, Tax service provider, Restaurant Owner, or something to do with import/export. *
*My instructor who is a bright young man is a Real Estate agent, I started talking to him and he has given me important insights into the business. *

This other guy I know provides tax services and has his office is located on campus. He graduated from my university, did his bachelors and masters, he struck a deal with the University which allowed him to advertise on campus, deliver brochures to 25,000 students. Brochures that advertise Tax services and Mobile Phones with University Logo on four corners and one in the center, he made it appear as if the University was providing all these services to the University students only, at a cheap price. He has hired 3 latinas between the ages of 18 and 22 all from the university. He trained them and pays them well and they handle his business. He spends 2 hrs at the office every day. Latinas can handle Mexicans too so his clientele is quite diverse. Oh and you know what else he does, he sells cell phones too, I saw quite a few in his office. He can’t help it, he is a Patel.

Another person I know is a young Pakistani guy fresh out of college. Did his bachelors in MIS, he started importing those salt lamps from Pakistan. Actually one of his uncles was sending him those things dirt cheap. He was able to design his own website and a really nice one listing all the benefits of salt lamp etc etc. It didn’t work out quite well. He went to the mall which is 2 miles from the his place and started collecting contact nos: of all the owners of Décor shops, contacted them, a few of them agreed, he showed them his items and negotiated prices. He turned out successful! The last time we met he told me he had to rent a small warehouse outside the city to store all his merchandise. He is doing pretty well.

I want to do something similar where I don’t have to manage a huge workforce, where I don’t have to invest lot of money in capital yet I am content with the cash inflow.

*I have just begun thinking about starting my own business, that is after I got a reality check from my internship. My ideas my be naive but hey I am taking my time. Who knows I might end up working with the firm for 3 years and after that go to Middle East, thats where my folks are. I would be happy to work there on salary basis since working hours are short, salary is good, and plenty of benefits too. *

*But even there, business owners make heck of a lot of money! *

Re: Owning a business V.S Working on salary basis

Ira, I understand what you are saying. The reason you are content with your job, even though you think you don't make much, is that you are a gal. I am a guy. My responsibilities are different than yours. Unlike me you don't have to worry about providing your parents a better living and supporting them even after you are married.

After 30 yrs of working 9hrs/day my dad finally listened to me and my elder bro and filed for retirement. My old man spent on us what he earned each month. And the little he did save he ultimately spent on me, my brother, my two sister's university tuition and fees. After 30 years of working on salary basis he does'nt have a whole lot saved. I love him to death but I don't want to be like him. I knew he was tired of his job long time ago but couldn't quit because of financial responsibilities... now that I have got a full time offer he was convinced it was time for him to quit. I cannot imagine myself working 8am-8pm M-F for 30 years. There has got to be some way to live life comfortably... right?