If you are thinking of making the jump from your job to start a small business, there are ways to prepare yourself. As this blog discusses a small business person has an intimate tie between their business finances and their personal finances. Often a small business owner takes the fluctuations in their personal income to support their business.
Before I left the corporate world I recall a conversation with a key employee. He complained that his value to the company was not adequately compensated. His feeling was that his technical skill accounted for most of the company and he deserved the lion’s share. First of all, as we all do, our subjective view of value leans toward ourselves. Second, the founder of the company is the person that sacrifices their personal income and absorbs the majority of the financial risk.
In business the person that controls the client list and takes on the business risk is the one that has the control and deserves it. Unless you are in this position it cannot be explained to the talented key employee. Managing these employees is a challenge and a topic for another blog. In the meantime read this experience of how a small business person made the move from corporate job to self-employment.