The founder of the company realized that he could freelance the same tasks he was performing as a staff member of a heartless corporation, and even more, without being limited to a single account.
The decision-making process was based on the following rationale:
Goal: To increase income and the amount of job satisfaction.
Available resources: certain qualifications, a network of useful contacts (both difficult to digitize and objectively evaluate), and time. The primary question was how to allocate this time effectively: continue selling it wholesale at a lower price or switch to retailing hours at a higher price.
Let’s compare both options:
Employment | Freelance | |
Income stability | + | — |
Predictability of the future | + | — |
Fast growth opportunity | — | + |
Access to resources | + | — |
The ability to choose tasks | — | + |
Efficiency of time spent | — | + |
Risk of losing pants | — | + |
Total: | 3 | 4 |
As the table above suggests, the mathematical expectation seems to favor the position of a free stonemason profiteer’s position.
Observant readers may wonder why the risk scores are skewed in favor of freelancing. The answer is simple: a fundamental principle of economics is that reward follows risk. Without risk, there is no profit. Since our goal is to increase our potential for income growth (rather than maintaining income stability), risk is precisely what we are seeking at this moment.
How to manage this risk and avoid falling into an unfavorable situation will be a matter for later consideration.
Godspeed!
P.S. The author is aware of the mortality statistics of new businesses and the data indicating that salaried employees earn more in absolute numbers than the average entrepreneur when reaching managerial positions.
However, these studies do not account for the likelihood of stalling midway through career advancement or the need to engage in questionable, underhanded intrigue to achieve goals. This essentially turns a career into a competitive struggle for the right to be favored by shareholders, which the author views as an unhealthy market with a monopolistic buyer’s position. One should strive for monopoly oneself; supporting someone else’s monopolies is an unfair risk and therefore unwise.