I did this. Spent 20 years in engineering companies as an IT guy, and started a consultancy after two dot bombs in a row. It was the most fun. But my wife likes the benefits where I work today. Even though I am frustrated and bored here.

Before I started my company I went to a local non-profit who sponsored a small business workshop. (http://www.cbdc.org/) Very helpful. I definitely recommend attending something like that before you go solo. You can find seminars through the small business administration here in the states.

I currently work for myself as of 11/01. I am now very close to getting a full time job and working for the man. Working for yourself can be as great and rewarding as working for someone else. Making your own hours can be as great as working a 9-5 job. you need to decide the opportunity cost for working for yourself and realize that you are taking a risk. I am taking a risk closing my company and working for someone else. The great thing is working for someone else “in general” you make mistakes and it’s the company who will probably pay for the mistake. If you own your own company and you make a mistake that could be the end of your company. The reason I am going to work full time is I am bored, burnt out, lost my passion for my business. I don’t have employees and I work from home, have little fixed expenses and no variable expenses so my overhead is low but I constantly need to find new clients to gain incomen and in the competitive market that is difficult. Probably if I partnered up with someone I could continue and be doing well. Who knows that once I work for the man I may miss what I had but I have nothing to loose and everything to gain as I know I will be getting a paycheck every week (of course there is always the possibility of being laid off I understand). Working for yourself is no gaurantee you will be receiving income.

Sorry to hear that you had a bad experience working for someone. But I’m glad it motivated you to go out there and work for yourself!

I think you missed my point a little about the master/apprentice relationship. What I was trying to say with that is that apprentice got all his skills and experience while working for someone else – the master. That’s the experience he wouldn’t have gotten otherwise.

And, of course, once he’s ready to go off by himself, he did. But all the preparation for that moment, all the skills, connections (customer base!), etc. – he got by working on someone else’s time.

Don’t get me wrong, I’m not trying to advocate everybody joining the corporate world and working there for a few years, learning the ropes and paying their dues. That stuff is definitely not for everybody.

I just see so many people out there online that making blanket statements like “you’re better off working for yourself” without considering any context or circumstances, that I tried to point out an example of a situation where you’d be better off STARTING by working for someone else.

I wouldn’t exactly look at Y Combinator’s relationship with companies they invest in as employer/employee. PG always emphasizes that they take only a small percentage and leave full creative control to the companies.

But you’re totally right, profit sharing is a very good example of a positive employer/employee relationship. I think what’s missing in a typical corporate environment for a lot of people is the fact that no matter how much you sweat, you generally won’t get far ahead in terms of salary (there’s a lot of exceptions to that, of course.)

I can only imagine how motivated would every employee in a company be if they knew they were in full control of how much they earn.

So Paul is actually an example of that positive employee/employer relationship you’re talking about. Because he calls a lot of shots, but people who take his seed money seem to really like having that relationship with him.

It’s not easy, but it’s not as hard as others might think.

Rebecca

Super stuff. I havent come across anyone who could have put it across more simply. I personally think you are doing an awesome job, writing this content. Best Of Luck !

rgds
N.Kartik
Bangalore, India.