I have often been asked if it still pays off to work a corporate job. This is a question that I could not answer, so I decided to go down the rabbit hole and find out what other people think. Corporate route or entrepreneurship?
This is a difficult question, which can certainly shape your career and life trajectory. Let’s see if we can find the answer.
They say the less traveled roads lead to greatness, so you need to ask yourself: whatever corporate path I choose, is it the less traveled road?
Long are the times when you could study, get a job, and retire in 30 years stress-free with a lovely house, happy family, and grown-up kids. Times have changed, and the level of education (and competition) is substantially higher in today’s world. Further, universities are extremely expensive, so that living a frugal life while at uni is the new normal.
As part of this shift, students are adopting cost-saving measures. For those far from home, college car shipping has become common as it allows them to avoid the hassle of long-distance driving while still having access to a car on campus, providing convenience for daily errands and flexibility for managing their tight schedules.
For context, in 1968, only 15% of the population of the US had a bachelor or more. Nowadays, this number is staggering, with the Census Bureau reporting that, in 2022, the number of people with a bachelor or more was 41.9%. Of course, with population growth, more jobs are surely needed.
Nevertheless, those jobs are primarily low-paid jobs, where perhaps a degree is not necessary. Furthermore, with automation, it is expected that a number of jobs will in fact be automated, with 9% to 47% of jobs to be affected.
The answer to this question has to be dissected on a case-by-case basis. First, ask yourself the following questions:
Then, ask which type of job you can get.
Once you have answered these questions, you will have your answer. You see, the corporate route can suit anyone, but you first need to understand what your main goal is. As with anything else, you must be strategic and thoughtful and understand if your capabilities align with your objectives. If you still need to, you might need to develop more skills.
Alternatively, you might need to rethink whether you are keen on following this path. Going the corporate route is becoming harder and harder. Salaries increase less than before, and the cost of living is substantial. From real estate to daily services, life seems more complicated these days. It’s no surprise that more people are venturing into developing fintech apps, taking the leap to innovate rather than staying stuck in the rat race.
Furthermore, taxation keeps increasing while the quality of life decreases. With that said, when considering the corporate job you want, you need to understand your perspective on quality of life. Corporate jobs are less risky, but it also means that the upside of earning massively (e.g. by creating a company) does not exist. Therefore, you are “capped” in your upside potential.
Stepping into the world of entrepreneurship can lead to a world of possibilities. Nevertheless, it also comes with complex challenges that one has to endure day in and day out, sometimes with no one to fall back on. As many business owners say, “Entrepreneurship is no fun at all”. Sometimes, it’s like buying a leather jacket and getting a motorbike – a bold and risky move, but one that shapes your own path.
While a corporate role might give you stability and you might often be able to predict your weekly workload, it might not be the case for entrepreneurs who must also develop effective business strategies to stay afloat. Indeed, in a business venture – especially when starting out – success is always a question mark, whereas failure is most likely a certainty. For online businesses, for instance, diving into the backlink strategies and understanding the importance of SEO is crucial.
Nowadays, you can start a business out of anything. In the recent years, many people have left the corporate world and moved to sunnier and more relaxed locations – becoming a digital nomad and moving to Lisbon sounds tempting, right?
Look around, and you will find what suits you best. If you need help, check what others are doing, and you might end up with a successful business just like Starter Story or Pickle Rooms. At the end of the day, what matters is the execution, the consistency, and the willingness to put in the hours for little to no benefit. It’s more a mental game than skills, so fasten your seatbelt if you want to go this route.
On the bright side, you will likely be highly successful quickly. On the corporate route, success tends to be tied to longer periods of time, during which you have to show up for work every day.
Apart from understanding if you are tailored to entrepreneurship, there are a few other factors that you should bear in mind:
Whether you want to be an entrepreneur or a professional, remember that both will give you relevant skills. In fact, 58% of entrepreneurs worked in a corporate job before starting their own business. This highlights how important the structure, skills, and consistency provided by corporate jobs are to entrepreneurism.
Also, even if corporate roles are more competitive and less needed than before, I would not be surprised if this would eventually change. The reality is that today’s reports state that 50% of Gen Z want to ditch corporate jobs and run their own businesses. This signals that corporate roles will have less competition, and entrepreneurial roles will have even more competition.
In conclusion, whatever route you choose, you just need to ensure that you are confident about your decision and remain consistent with your plan. In addition, there needs to be more than a one-size-fits-all answer to the corporate route vs entrepreneurship dilemma. Your decision should align with your values, aspirations, and circumstances.
Whether you choose the stability of the corporate world or the excitement of entrepreneurship, remember that success ultimately depends on your dedication, resilience, and willingness to adapt. For more insights on money mindset and how to start your financial journey, check Financitute.
Now, it’s time for you to reflect, evaluate, and choose your path wisely. Whatever route you take, remember that the journey is just as important as the destination. Here’s to your success, no matter which road you choose.
As always, don’t forget to check our Premium Resources for materials that will help you prepare for the career you want to pursue!
