Employment versus Employer

Operating a small business can be appealing to independent individuals with a drive to succeed -- but entrepreneurship is not for everyone. Before you venture out into business, you should consider the differences between being a business owner and being an employee. Your ability to sleep soundly at night could be at stake, either way -- some people crave security and would never be happy in the variable world of the entrepreneur, and some would always wonder what might have been if they stick with the stolid day job that requires no risk but grants little reward.

Freedom
"Being your own boss" is a somewhat cliched reason that is often given for being a business owner. As Rhonda Abrams of USA today notes, "the independence and flexibility to make time for family, hobbies or other activities is a huge draw to the entrepreneurial life." At the same time, being employed gives you a certain amount of freedom because you don't have to worry about every aspect of the company and when you're on vacation or enjoying the weekend, you can forget your work concerns.

Pay Consistency
One of the most significant differences between entrepreneurs and employees is that employees receive regular paychecks. As an employee, you know what to expect your income to be and can budget accordingly. As an entrepreneur, your income can vary from month to month and year to year. This can make it hard to plan for the future, as you can never be certain of your financial resources.