Press center

Kaliningrad, 12.09.2006

Hello, Entrepreneurial Universe!

#about #research #build

The founder of the company figured he could freelance all the same things he doing as the staff of a heartless corporation. And even more. And not be limited to a single account.

The math of the decision was as follows.

The goal: to increase income and the amount of pleasure gained from work.

The resources available are: some qualifications, a circle of useful contacts (both are difficult to digitize and evaluate objectively) plus time. In fact, the only question is how to properly dispose of this time: continue to sell it wholesale for cheaper or switch to the retail sale of 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 what to do +
Efficiency of time spent +
Risk of losing your pants +
Total: 3 4

The table above clearly hints that the mathematical expectation leans in favor of the free stonemason profiteer’s position.

The attentive reader may wonder why risk scores are skewed in favor of freelancing. It’s simple: the main thing that economics teaches us is that reward always follows risk. Where there is no risk, there is no profit. And since our goal is to increase our income growth potential (rather than the stability of our income), risk is exactly what we are looking for right now.

How to manage this risk, not to get into a losing situation — we’ll think later.

Well, God bless!

P.S. And yes, the author is familiar with the mortality statistics of new businesses. As well as the data that salaried personnel earn more in absolute numbers than the average entrepreneur when they reach managerial positions.

The challenge is that all these studies do not take into account the likelihood of stalling somewhere halfway through a career promotion. Nor does it take into account the need to engage in dubious underhanded intrigue to achieve your goals. Which essentially turns a career into a competitive struggle for the right to be favored by shareholders. Which according to the author is some kind of sick market with a monopoly buyer’s position. And monopoly is a status one must strive for oneself. Encouraging someone else’s monopolies is an unfair risk and therefore stupid.

Dmitry Schnellreich