Running a business makes your beard go grey, but...
While teaching business courses in the last month or so, I've spent a lot of time working with employees of a local company. And, as tends to happen in full-immersion courses, many of the lessons revolved around conversations, which in turn involved students and teachers getting to know each other by talking about their jobs, the things they do every day, what they like or dislike about their work, and so on.
Funnily enough, it took a little time before I recognised one of my new students as a (formerly) young guy who I had taught in the years when I was new in Italy, at the end of the nineties. He looks as fit and healthy now as he did then (he's an enthusiastic cyclist) but is no longer a youngster and now boasts a middle-management position and a head of grey hair. The years have changed me too, but more of that later.
Our relative career progress in the last decade, and the collateral damage in terms of hair colour, got us both thinking about the merits and demerits of being an employee as compared to self-employment. For him, the security offered by his job was the most important thing, along with the fact that his job was stimulating but still left him time for his family and his beloved cycling. He'd already paid off his mortage, and was buying a flat for his children. Life was sweet, or at least would be for as long as his company remained solid. He made it sound great, but for me, after a less-than-satisfactory spell as a small cog in the large machine that is the British Council, the idea of filling a similar role fails to inspire one little bit.
No, from my point of view, organisations seem more restrictive than attractive. No doubt about it, being your own boss is infinitely better! Yes, OK, you have to work 12 hours a day, or more. And it's true that if the money's tight your own salary is the first to be cut. And yes, bank loans for the business do often have to be guaranteed with your personal assets. However, the benefits undoubtedly outweigh the disadvantages!
First of all, there's the sheer animal satisfaction of continuing to exist. Getting a year older was never more enjoyable than when I was able to count the months and note that my nascent enterprise had survived its first 12 months, then its second year, and now its third, especially considering the statistics showing that a large percentage of new enterprises are destined to fail in a similar period.
Next, and perhaps most importantly, there is the immense value and interest deriving from the self-employment learning curve. Perhaps other small business people are different from me, but my first three years running a company has involved a series of things which I didn't initially know how to do, but which I had to master quickly. There were, and are, mistakes. But also the satisfaction of making good decisions, and doing things well. Learning new skills brings new perspectives and new opportunities now at a rate which I never experienced when an employee.
In fact, after talking round the subject for a while, the conclusion which we came to was just about this: working for yourself brings a higher level of risk, and a commensurately higher level of opportunity too. "But what about the money?" is the obvious question. Good point. As a freelance teacher, money was a way I had of keeping score, of getting through long, tiring days. I'd think to myself, at least today I earned €150, or whatever the sum was, and I would feel satisfaction. It seems terrible, thinking back on it! But my wife wasn't working and we had a new baby, so perhaps it was understandable.
Now however, money in terms of my own salary, is something I hardly think about at all. It just doens't seem relevant. Not to say I don't think about money, the opposite in fact. Income, costs, taxes, salaries, and all the other numbers occupy a lot of my waking thoughts, it's just that the money has become just a way of measuring the pulse and state of health of the business, rather than being stuff I could buy things with. What's great is when sales are up, we're hiring teachers or we've got a new client, rather than that my bank account contains or doesn't contain a certain sum.
Which brings me to a nice metaphor for running a company. Think, I said to my student, if you had a couple of hundred thousand euros extra to spend, what would you buy, and why? Maybe a house? A boat? A fast car? Something with a degree of novelty, which would interest you, and make you feel good about yourself, with all probability. Like a great new Christmas present that you wouldn't get bored with. Well, in a certain sense, that's what running a business can be like: the ultimate executive toy, complicated and interesting, with buttons you can push to get new actions and reactions. And when you get bored of playing with it, it can change and do something new to entertain you, at least if you've got the energy to keep playing with it.
All that said though, unlike a boat or an executive toy, running a business can make your beard go grey!
Funnily enough, it took a little time before I recognised one of my new students as a (formerly) young guy who I had taught in the years when I was new in Italy, at the end of the nineties. He looks as fit and healthy now as he did then (he's an enthusiastic cyclist) but is no longer a youngster and now boasts a middle-management position and a head of grey hair. The years have changed me too, but more of that later.
Our relative career progress in the last decade, and the collateral damage in terms of hair colour, got us both thinking about the merits and demerits of being an employee as compared to self-employment. For him, the security offered by his job was the most important thing, along with the fact that his job was stimulating but still left him time for his family and his beloved cycling. He'd already paid off his mortage, and was buying a flat for his children. Life was sweet, or at least would be for as long as his company remained solid. He made it sound great, but for me, after a less-than-satisfactory spell as a small cog in the large machine that is the British Council, the idea of filling a similar role fails to inspire one little bit.
No, from my point of view, organisations seem more restrictive than attractive. No doubt about it, being your own boss is infinitely better! Yes, OK, you have to work 12 hours a day, or more. And it's true that if the money's tight your own salary is the first to be cut. And yes, bank loans for the business do often have to be guaranteed with your personal assets. However, the benefits undoubtedly outweigh the disadvantages!
First of all, there's the sheer animal satisfaction of continuing to exist. Getting a year older was never more enjoyable than when I was able to count the months and note that my nascent enterprise had survived its first 12 months, then its second year, and now its third, especially considering the statistics showing that a large percentage of new enterprises are destined to fail in a similar period.
Next, and perhaps most importantly, there is the immense value and interest deriving from the self-employment learning curve. Perhaps other small business people are different from me, but my first three years running a company has involved a series of things which I didn't initially know how to do, but which I had to master quickly. There were, and are, mistakes. But also the satisfaction of making good decisions, and doing things well. Learning new skills brings new perspectives and new opportunities now at a rate which I never experienced when an employee.
In fact, after talking round the subject for a while, the conclusion which we came to was just about this: working for yourself brings a higher level of risk, and a commensurately higher level of opportunity too. "But what about the money?" is the obvious question. Good point. As a freelance teacher, money was a way I had of keeping score, of getting through long, tiring days. I'd think to myself, at least today I earned €150, or whatever the sum was, and I would feel satisfaction. It seems terrible, thinking back on it! But my wife wasn't working and we had a new baby, so perhaps it was understandable.
Now however, money in terms of my own salary, is something I hardly think about at all. It just doens't seem relevant. Not to say I don't think about money, the opposite in fact. Income, costs, taxes, salaries, and all the other numbers occupy a lot of my waking thoughts, it's just that the money has become just a way of measuring the pulse and state of health of the business, rather than being stuff I could buy things with. What's great is when sales are up, we're hiring teachers or we've got a new client, rather than that my bank account contains or doesn't contain a certain sum.
Which brings me to a nice metaphor for running a company. Think, I said to my student, if you had a couple of hundred thousand euros extra to spend, what would you buy, and why? Maybe a house? A boat? A fast car? Something with a degree of novelty, which would interest you, and make you feel good about yourself, with all probability. Like a great new Christmas present that you wouldn't get bored with. Well, in a certain sense, that's what running a business can be like: the ultimate executive toy, complicated and interesting, with buttons you can push to get new actions and reactions. And when you get bored of playing with it, it can change and do something new to entertain you, at least if you've got the energy to keep playing with it.
All that said though, unlike a boat or an executive toy, running a business can make your beard go grey!
