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Business Owners Enjoy More Than Profits

When reviewing a business opportunity, it is important to consider the intangible benefits in addition to the monetary rewards.

Earnings Offer One Set of Rewards

When considering the option of owning their own business, many people wonder whether it will allow them to meet their financial needs. While the financial rewards of a successful business can be substantial, the initial costs of starting the business can create financial hardships in the short run. For many people, the short-run concerns will prevent them from pursuing a business opportunity that could deliver significant rewards in the long run.

Most jobs offer an hourly wage or a salary in addition to benefits. The benefit might be as small as the employer’s share of the Social Security tax are as large as a generous health insurance plan. When comparing the financial compensation an employee receives, it is important to consider all of these factors.

While it may seem small (and it is required by law), the Social Security payment an employer makes on behalf of the employee is a cost that any self-employed individual will bear.

Benefits Complete the Compensation Package

A typical employee receives benefits that are equal in value to about forty percent of their cash wages. This can be a significant financial incentive to remain an employee, but the rewards of operating a small business extend beyond the financial. The rewards of a business are potentially unlimited. Small businesses have grown into multinational corporations, and it is probable that will occur in the future.

The benefits of operating a business include more than financial compensation in any form. Business owners enjoy some degree of freedom to operate their business independently, a benefit that could be worth a great deal to some. Small businesses also reward business owners with a sense of satisfaction that may not be available to employees, an intangible benefit that can be priceless to some.


Michael Carr is a small business expert who has been involved in the successful development of three small businesses.