Showdown 1: Security/Stability
This is part one of a series exploring factors in self-employment and traditional employment. For more about this series, read the opening article.
How reliable your paycheck and position is
I think the major point from the pros and cons is this: Startups are more susceptible to fluctuations. When my business had unexpected expenses, business was slow, or a key client paid late, we had to skip payroll. When things were going great, it was easy – success keeps you going. But the hardest times were the months where we knew we didn’t have enough cash to pay ourselves. When your mortgage payment relies on the month-to-month income from your business, a small variation can have disastrous effects.
Once you’re on your feet and have a reservoir to cover payroll (or have outside funding) little factors like a client paying a week late won’t matter quite so much. But until that time, you’re in startup mode – and stability is a major weakness.