Small Business Ownership vs. Self Employment

A friend of mine had a dream of opening her own real estate brokerage firm. She has been an agent for quite a while with a company that she really enjoyed. But, it didn’t belong to her.

The thing that struck me about that conversation is that, we as Realtors(r) are already independent contractors. We already work for ourselves, handle our own expenses, benefits, and business structure. In essence, we work for ourselves. Each agent is essentially their own small business. So, this drive to own a brokerage is a bit different than the typical, “I want to work for myself.”

There is a difference between the thoughts – “I want to work for myself” and “I want to be a small business owner.” This is an idea I had never given much thought to until looking at it from the inside.

Yep – from the inside. Karen’s dream to sell homes in Richmond Hill under the banner of her own company is exciting to me. She has picked a great franchise with wonderful opportunities. When the chance to team up with her materialized, I knew it was the right thing to do…but I digress.

What motivates a self employed person to become a small business owner? Some folks can’t help but become a SBO – the field of their choice requires it. Is it about leaving a legacy? Is it personal or professional?

I’d love to hear your thoughts.

Comments

  1. what’s holding you back from being a sbo? 🙂

    • I guess being a Realtor, I just don’t really have to be…at least, not right now. I have a broker that is the sbo. But Sellstate is an exciting franchise and growing…who knows 🙂

  2. Wade Young says:

    One of the benefits to owning your own shop is that you can later sell it. I have owned three previous business (I am now a mortgage broker with my own shop). I sold two of those businesses and continued to make money well after I had worked my last day. If you work for someone else, even if you are an independent contractor, there is nothing to sell when you decide to retire or move on to something else. There are good and bad points to both, but the inherent value of a business is something to consider. You can also pass it down to a child if you have a son or daughter who wants it.

    • You are absolutely right. The ability to sell a business for profit or pass it on as a legacy is a wonderful option…one I may have to consider myself one day.

  3. Wade is spot on with the benefits of owning one. I would also add that there is added freedom in how you run your business. I quickly learned (about 1 month into it) that working as a mortgage broker for someone else limited what I could do and the flexibility of what I charged clients, among numerous other things. On top of that, I had a vision of what my mortgage business would be like and that required seperation from anyone else.

    • Robert – Ain’t that the truth! That was probably the hardest part about being in the Navy – it has been around for so long, there was a lot of “that’s just the way we do it.”

      I would love to hear more about that vision…

  4. Your site was very helpful. I look forward to seeing your next posting. Thank you

  5. April – My vision is slowly coming to fruition. It is to be the first mortgage planning only business in South Florida and be the one that is the first on the minds of everyone down here when they think of who to call for those services. For those who do not know what mortgage planning is, the simple version is integrating your mortgage as part of the overall financial and investment plan – using your mortgage as a financial tool to meet your financial goals.

    Since there are less than 1/10th of 1 percent of mortgage professionals that truly understand how to do this, I have separated myself from the “pack”. The only drawback is that I cannot help everyone, but it is fun and satisfying to watch people’s minds change as they realize how money works and how their mortgage can be benficial or destructive to their financial future.

    I hope that provides some insight to my vision, but it does go beyond that. As you can see, not everyone fits my mold.

    • Robert – I think what you do is indeed an asset to the industry. Money is not functional when it is compartmentalized. We do better when we see it as inter working components – and that includes mortgages. I hope that you find qualified folks to join you and learn from you so that your vision and the number of folks you are able to help grows.

  6. business mortgages says:

    One of the benefits to working by your own is that you decide what your earnings will be or it will probably a risk.
    However, if you are optimistic and work hard I am sure you will be successful.

    Many thanks.

    • Business – I think you are mostly right. Optimism without action will leave you broke. But with out positive thinking, regardless of action, you will probably fail. I love working for myself and I am glad you too are looking for the benefits.

  7. I’ve found that working for yourself entitles you to shape how things are done much more liberally than self employment.

    On the other hand, self employment frees you from creating the business “framework” .

    I say, it really depends on your goals and personailty which varies from person to person.

  8. Mortgage – you are right – it really does depend on the person. That personal definition of success is such a powerful thing.

  9. I’d go for my own business. I love working for myself and I am glad you too are looking for the benefits.

  10. A friend of mine had a dream of opening her own real estate brokerage firm. She has been an agent for quite a while with a company that she really enjoyed. But, it didn’t belong to her.

    I think is a good option but think about to create your own business as well-

    Thanks.

  11. Faster Bridging Finance says:

    “I want to work for myself” and “I want to be a small business owner.”

    Those are two very different things and both have different results as well.

    Thanks

  12. A good manage in finance life is that we must be informed about financial information and also being timekeeper and work hard.

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