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