10 Traits That Make You a Better Employee Than an Entrepreneur

Making a leap to entrepreneurship takes courage. What most people don’t realize is that knowing who you are and being content working for others also takes courage.

Not everyone is suited for a position of risk-taking and leadership; for some, it is not worth any amount of money to add stress to your life, dealing with the unknown, and not being able to separate work from home life. Many people prefer to leave work at work. And that is a wonderful way of life, and reasons why it took me so long to finally cross over to being an entrepreneur.

Being an employee doesn’t make you less capable, driven or courageous. It could simply mean your personality traits aren't fitting for entrepreneurship, at least at this time. If you are at a crossroads deciding between a job and starting your own business, maybe my list of traits will help you make an informed decision. To read about traits that are more fitting for entrepreneurship, see my article 10 Traits that make you a better entrepreneur than an employee.

1. You need the security of a steady paycheck

Financial security is important. The rollercoaster ride of entrepreneurship is hard to stomach for most people — good or bad, you never know what can happen next. Many would rather have peace of mind over the potential monetary reward for being a business owner.

Being employed also usually comes with a benefits package such as healthcare and life and disability insurance. If having steady benefits and a set amount of income every month allows you the ease to plan your life with more certainty, then being employed may be more suitable for you. There is a lot you can do for your future when you budget and invest wisely with what you have. 

2. You like structure and clear directions

Working in a company environment means most of the rules are set. There is an order to follow and you will have a supervisor to guide you. And that is a relief for many, knowing their parameters to work within.

Having to lead and come up with ideas all the time isn’t always as glamorous as it seems. Many people prefer to be told what to do so they don’t have to think about it and figure it out on their own. If that is you, then being employed can be the more relaxed path for your career. And believe me, you are very much needed and an integral part of any workplace. Things get done because of employees who understand and respect rules. It is a valuable trait to have.

3. You enjoy being part of a team

If you love working with others as a team and the often solitary entrepreneurial life sounds too lonely, then being an employee would be a much more satisfying path.

Working in a company means you are automatically provided with a work family, whether you like it or not. Despite the spats and dramas you may have from time to time, you still would much rather have coworkers to collaborate with and people to chat with when you come to work. If you enjoy having a support group to see through all your wins and mistakes together, then being an employee at a workplace is more likely to provide that than being an entrepreneur.

4. You prefer to only do what you know and focus on your task at hand

You may prefer to only do what you are trained to do, without having to think of different ideas for different problems every other week; entrepreneurs often have to improvise and come up with creative solutions while building their businesses. 

Becoming skilled at something is a process and that is an investment you have made toward something you are good at. A satisfying workday for you could mean doing a great job at what you are assigned, then returning home to rest, then starting over with the same thing the next day — that in itself can be rewarding enough. Working at a company with many others to cover different skill sets will allow you to focus on what you’re comfortable doing.

5. You crave a more simple life

Being employed can certainly be a more straightforward and simpler choice than owning your own business; although that statement can be debatable or reversed depending on different factors. But in general, the average employee can avoid the many complexities and uncertainties an average entrepreneur can face.

When you are employed, a career path is often laid out for you. You have an understanding of what expectations are and what your next promotion or milestone will look like. You also know how many days you have off and when you can plan for an uninterrupted vacation. Often for an entrepreneur that life can take years to build. If you want to be able to compartmentalize life and set aside chunks of leisure time, then being employed might be more suitable for you.

6. You need recognition and encouragement to keep going

One thing you can almost always expect at full-time employment is recognition in some form. There is usually a pat on the back for a job well done, thank yous, promotions, milestones, and benefits for just being at a job long enough. That is something never guaranteed for an entrepreneur. If you are superb at what you do, you will have grateful customers or see rave online reviews, but you won’t have official recognition for completing your annual goals or for simply being an entrepreneur for a long time. 

If recognition is important to you, and you need encouragement every now and then for motivation, then being an employee might be much more rewarding without feeling like your time and hard work has gone unnoticed. 

7. You would rather keep your options open

Building a business takes commitment, whereas you can easily make a job transition if you no longer enjoy your current workplace. The upside of not having your own business is that you can jump ship anytime and find a different work environment.

If you rather see your work as a job and not carry the responsibility of running a successful business, then being an employee would feel much more carefree.

8. You don’t have a business idea of your own

Sometimes, the simple answer of “I don’t know what my business would be” is enough to make your decision for you. Many people start a business because of one contract or they went along with a friend’s idea because they saw the monetary reward others have reaped. But that may not be the right path for you. I’m not saying it will be a disaster or that it is guaranteed to fail. All I’m saying is that it’s not enough of a reason to give up a stable paycheck to test the waters. You could, however, start something as a side gig and see how things go for you.

This may change over time as you accumulate more wisdom, or just time in your life to begin anew, but if there isn’t a current drive or passion toward something you must bring to life, then at least wait until you have a clear vision of your own business before you start.

9. You have highly specialized knowledge or skills

Some people are highly academic or intellectual in their professional pursuits and have very specific knowledge or skills needed in a certain industry. For example, you are an astrophysicist and there is no easy way to transition that into a business of your own; the cost of technology and equipment alone would make it nearly impossible (though of course, there are many possibilities for side projects, such as writing a book, starting a podcast, etc).

Recognizing that of yourself would make it an easy decision to stay employed by a highly specialized organization or facility that would allow you to continue your pursuit of higher learning and exploration, whereas starting your own business would likely pull you in many different directions without the focus you might need.

10. You cherish work-life balance at all times

Finally, most people prefer a clearly defined boundary between work and personal life. Home is where you feel you can relax and enjoy yourself with your loved ones. You would rather keep a 9 to 5 schedule and not think about work once you get home. The idea of blurring work and personal time together feels stressful to you.

Many prioritize their family and personal time away from work as the most important (not to say entrepreneurs don’t do the same). The difference is business ideas and decisions will always be in your thoughts, whether or not there is an issue, as an entrepreneur. When things are slow, you’d want to hustle; when things are stable, you’d want to grow. As an employee however, you’re relieved of the pressure of how to direct a business and not have to think about your bottom line or how to pay your employees. Being an employee allows you the luxury not to carry that heavy responsibility and enjoy your personal time fully while you are away from your job.