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15 Differences Between Employees and Entrepreneurs

15 Differences Between Employees and Entrepreneurs

Ever wondered what it takes to make the leap from employee to entrepreneur? It takes some key shifts in mindset, habits, and comfort levels–resulting in some key differences between the types of people who thrive as employees and succeed as entrepreneurs. Some people generalize employees as followers, and entrepreneurs as leaders. Yet there are entrepreneurial employees, and there are entrepreneurs who know when it’s time to follow someone else’s lead. The difference between these two types of people isn’t always clearly defined.

So, what are some key differences between employees and entrepreneurs?

1. Employees seek direction while entrepreneurs create a path.

Employees tend to seek help when a problem arises at work. Entrepreneurs create the solutions that keep the organization moving forward.

2. Employees do while entrepreneurs listen.

It’s the employees who get most of the work done in any organization. But in order for them to do it well, the entrepreneur at the helm has to listen to their needs and ensure they maintain a productive and positive work environment for staff.

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3. Employees take fewer risks while entrepreneurs live for them.

While doing things the safest way can actually be good for an organization, it takes a risk-tolerant entrepreneur to believe in and build the organization in the first place.

4. Employees are often specialists while entrepreneurs are generalists.

Entrepreneurs need to know a little bit about a lot of things, in part so they can empower the specialist employees who work for them. In fact, a Swiss-German study found that specialists tend to be employees for life, and in fact prefer that role.

5. Employees get paid for their role while entrepreneurs get paid for results.

Entrepreneurs are sometimes the last to get paid in a company, because their compensation is tied directly to performance and profit.

6. Employees love holidays because they get the day off while entrepreneurs do because they can work all day with few interruptions.

A lot of entrepreneurs rejoice when holidays come along, not because they’re taking well-deserve time off, but because they can be productive all day without being disrupted or distracted.

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7. Employees appreciate steady employment while entrepreneurs are comfortable without job security.

Entrepreneurs know that it’s risky to build a business and that they must sacrifice steady employment in order to build the company.

8. Employees follow rules while entrepreneurs break them.

It’s a strange paradox, but to create a successful business an entrepreneur has to disrupt something, break a rule, or change the game. But in order to keep the entrepreneur’s company going, the employees need to be there to uphold the new status quo.

9. Employees are responsible for some decisions while entrepreneurs are responsible for them all.

Whether positive or negative, the entrepreneur is ultimately burdened with the impact of decision-making at all levels of the organization.

10. Employees execute tasks while entrepreneurs plan.

An employee can take work day by day, whereas an entrepreneur has to consider how well the tasks are being performed relative to the long-term plan for the business.

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11. Employees like structure while entrepreneurs like infrastructure.

While employees generally prefer to have a defined range of responsibility, entrepreneurs consider how each person’s role contributes to the business–and its growth–as a whole.

12. Employees work to a schedule while entrepreneurs create their own.

If they don’t develop strong time management skills, entrepreneurs can burn themselves out working too many hours each week.

13. Employees are always working while entrepreneurs are always selling.

And it can be exhausting. Entrepreneurs have to sell investors on their ideas, clients on the value of their products, staff on the benefits of working there, and even their families on why they’re running a business.

14. Employees can enjoy more social interaction while entrepreneurs often work in a silo.

Entrepreneurship can get lonely, especially at the beginning. It helps to have a mentor or other group to bounce ideas off at the early stages of starting a business.

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15. Employees dislike failure while entrepreneurs embrace it.

Failure means learning, and entrepreneurs know that failure is more likely than success–and failure can lead to success. Employees would rather not fail at their jobs as it can lead to fear of losing the steady employment they value.

Featured photo credit: LV woman/MariusBoatca via imcreator.com

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Last Updated on June 22, 2018

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider consolidating multiple credit cards if possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to pay the full balance you spent each month at the very least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay extra when you can – every small amount counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a plan on how to pay extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out costs for services you do not use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get aggressive about it

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate your progress at set intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start knocking out your debt today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

Featured photo credit: Pexels via pexels.com

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