Sole Propietorship versus Small Company
I was chatting with a friend today who also has his own small business. He has a few employees. I'm a solo practioner. He can go out and get more business and deliver more, but always has that pressure of making sure the pipeline is full enough to support them all and can pay them all whether or not there's money coming in.
Me? I can only take on jobs I can handle (or subcontract) but when things are slow, I only have myself to pay and can more easily cut expenses and expectations.
I guess it's all a matter of scale. My fixed expenses are pretty minimal, but the amount of work I can take on is limited as well, to my hourly output. He has a larger fixed burn rate, but can amplify his resources in a way I cannot.
I'd be curious to hear from folks that have gone both ways. Which was more satisfying? Which was less worrisome? If you switched, how did you make that decisions?
Me? I can only take on jobs I can handle (or subcontract) but when things are slow, I only have myself to pay and can more easily cut expenses and expectations.
I guess it's all a matter of scale. My fixed expenses are pretty minimal, but the amount of work I can take on is limited as well, to my hourly output. He has a larger fixed burn rate, but can amplify his resources in a way I cannot.
I'd be curious to hear from folks that have gone both ways. Which was more satisfying? Which was less worrisome? If you switched, how did you make that decisions?
posted by Ellen at 6:54 PM
1 Comments:
Hmm. I'll have to think about this one. The trick will be making my comment coherent.
I was a dba for 5 years, and a year and a half ago, I switch to an S-corp with a partner. We are definitely experiencing that money pinch.
I'll have something to say.
Really glad to have found this blog. Nice to not be 'alone in the wilderness' of very small business.
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