Job vs Self Employment?

Question by Mark Jergens: Job vs Self Employment?
Which is better, to own and/or start your own business/company, or to work for a large company in a good position?

Many people tell me you can only become rich by starting your own company. But, many people who I know work for large companies and have made their way up to higher position. One friend of mine is Partner at a consulting firm called McKinsey and Company, another friend is an Associate at Goldman Sachs, and another friend is a VP of Strategy and Business at American Express. I am almost positive that the McK job and American Express job pays over 1 million a year, and the Goldman Sachs job pays around 600k a year.

Now, people who start their own businesses can make more, but most usually don’t. Lets say a guy starts a clothing store in a city. Do you honestly think they will make around 600k or more a year? Sure, if they are super successful and spend much money on the start up.

But, it is much easier to get a job. If you are making 300k and up in your job each year, how are you not considered rich?

The reason why I ask this is because I don’t know if I want to accept a job offer at Time Warner, or start my own music promotion business/company.

I really don’t mind working in offices, travel, and the tiring work hours jobs require.

Please help me?

Best answer:

Answer by NYUbound
MicKinsey and Goldman Sachs… names that every Business major hunger after at the top schools. Investment banking at Goldman Sachs can actually go well over 600k if you can manage to not get yourself fired over a couple of years. The bonuses are huge. You will be making millions every year, but the stress and work hours are VERY long and demanding.

Yes, you’re right, working at McKinsey or GS will make you a LOT of $ $ , more so than most people who start a small business ever will. They are also ridiculously selective and very hard to break into, which is why they are paid so much. I really don’t know much about Time Warner, what the pay is like, and how easy/hard it is to move up the ranks.

I guess what your major concern here between either joining up with a big company, or managing your company is… People do say that the satisfaction that you will get from starting your own company is significant. It will be YOUR company, and you can do whatever you like… it is different working at a firm for someone else and being a “gear”. If you don’t really care if you own the company or not, or that the hours that you work benefit someone else, working at a big company is definitely more secure and less risky than entrepreneurship.

What do you think? Answer below!