Employee vs Entrepreneur Mindset: Finding your Perfect Career

In the world of work, your mindset can be the defining factor in the path your career takes. I have found that two predominant mindsets shape the choices we make: the employee mindset and the entrepreneur mindset.

Understanding which of these mindsets you have and their implications is crucial in making informed career decisions. In this post, we will delve into the differences between these two mindsets, explore their pros and cons and then consider how you could transition from an employee mindset to an entrepreneur mindset.

Keep reading to see the employee vs entrepreneur mindset debate and how finding your mindset could help you discover your perfect career.

Employee Mindset

First, we are going to start with the employee mindset. This is the mindset that the majority of you will have. Mainly because in this fast-paced, society-driven world everyone expects you to get a job right after education. Before you know it your mindset defaults to that of an employee before you have even considered if entrepreneurship is right for you.

Characteristics of an Employee Mindset

Needs Job Security: Employees typically seek stability and job security. They value the predictability of a regular pay check and the idea of a varying income is very daunting.
Task-Oriented: Employees are focused on fulfilling specific job responsibilities. They are great workers and tend to procrastinate less. They may have limited involvement in decision-making processes.
Seek Approval and Direction: Employees often work to impress their boss to try to get noticed for a promotion. When a new project is starting an employee has to seek out direction from their superiors to find out what is needed from them.
Can switch off their work Brain: Most employees work for a set number of hours. When they clock out for the day or for the weekend they can stop thinking about work until they next clock in. They are able to separate their work from their home life.
Often have a Career Path in mind: It is relatively easy for an employee to dream of where they could be in 5 years. They can work towards a few promotions or maybe even see the position they would like to aspire to.

Pros and Cons of an Employee Mindset

Each of these career paths and mindsets have pros and cons to them. There is no right or wrong path. For some people the idea of being an employee will fill them with dread and for others the idea of working for themselves will fill them with an equal sense of fear.

We will now look at a few Pros and Cons of working as an employee and having an employee mindset.

Stability vs. Limited Growth: Employees enjoy job security and stability but may find growth opportunities limited within the confines of their roles or their companies.
Predictable Income vs. Limited Earning Potential: Employees work for a fixed income which offers that all-important financial security. But this does mean that their earning potential is capped for the role they are in. They will often know exactly how much money they will earn that year before they have even started working.
Clear Roles vs. Lack of Autonomy: Employees often have clearly defined roles so they know exactly what their job is and how to do it well. But this means they may lack the autonomy to shape the direction of their work.

Entrepreneur Mindset

Now we will move on to evaluate the Entrepreneur mindset. This is the rarer mindset that is often developed over years of regular employed work. If you naturally have an entrepreneur mindset then you may have struggled to fit into society after education.

Personally, when I left university I found it very difficult to navigate the adult world of work. I would much rather start multiple businesses than have to go into employment. Going against the grain in society like this can be very challenging and isolating but if you have the right mindset, I believe it can really pay off in the long run.

Characteristics of an Entrepreneur Mindset

Risk-Taker: Entrepreneurs often have to embrace risk and uncertainty. The start to see challenges as opportunities for growth as opposed to something that should be feared.
A Dreamer often Driven to Innovation: An entrepreneur mindset is characterized by a commitment to innovation and a willingness to adapt and grow to the market they are in.
Ownership Mentality: Entrepreneurs take ownership of their ventures. They are their own boss so they must constantly make big, strategic decisions that will directly impact their future success.
Maverick who bucks the Trend: Entrepreneurs are going against the societal “norm”. To do this they have to be bold enough to step out of the crowd, take the criticism and doubts from others and push forward to create their own path.
Always Working: To become a successful entrepreneur it takes an incredible amount of work. They cannot clock out at the end of the day and get paid. An entrepreneur’s most valuable asset is their time so it is not unusual for them to work long hours, through weekends and holidays.

Pros and Cons of an Entrepreneur Mindset

As we have mentioned, the entrepreneur mindset is much harder to come across. You may even find that you had an entrepreneurial mindset but after a few failures and setbacks you had to adopt an employee mindset. Unfortunately, life is expensive and we often can’t afford an extended amount of time where we are not earning to set up a business.

Here are the main Pros and Cons I have found from working for myself and having an entrepreneur mindset.

Unlimited Potential vs. Financial Uncertainty: Entrepreneurs have the potential for unlimited earnings, but they also face financial uncertainty and risk. When first starting a business it takes on average 3 years to make any profit at all!
Creative Control vs. Responsibility: Entrepreneurship offers complete creative control over one’s work but this means it comes with the full responsibility of managing every aspect of the business. There is no-one to tell you what to do or where you are going wrong.
Building a Legacy vs. Potential Failure: Entrepreneurs aim to build a lasting legacy, but they must navigate the possibility of business failure. This often comes with a constant fear of failure that they must push through on a daily basis.
Following a Dream vs. Facing Criticism: Entrepreneurs are often seen as dreamers. They are constantly dreaming of their future business ventures. But when you go against the grain in society you will always face criticism. The cost of being a dreamer will always be the feeling of being excluded from the rest of the world.

Transitioning from Employee to Entrepreneur

Making the shift from an employee to an entrepreneur can be challenging, but it’s not impossible. If you are thinking about taking a leap of faith and starting your own business I am so thrilled for you! Starting my own business was the best decision I ever made (even though the first one was a complete failure!).

Becoming an Entrepreneur is no easy feat.

In my experience it will take a lot of late nights, countless doubts and even more failures. But if you can get through it all, I believe the freedom that comes with entrepreneurship is well worth the hardships.

To make the transition from employee to entrepreneur slightly easier I have included some key strategies to help you develop an entrepreneur mindset:

Embrace Risk: The life of an entrepreneur is inherently risky. As you transition into entrepreneurship, start by taking calculated risks and gradually build your tolerance for the uncertainty of the business world.
Ignore the Critics: As an entrepreneur you must build up mental resilience against all of the criticism you will receive. Whether they are jealous that you are following your dreams or simply don’t understand what you are trying to do, there will always be people who try to discourage you.
Build a Support Network: Running your own business can be a very lonely experience. You suddenly have no co-workers or superiors to lean on when things get tough so it is really important that you build your own support network of like-minded people. Seek mentors, join entrepreneurial communities, and learn from those who have already successfully made the transition from employee to entrepreneur.
Lean into what Inspires you: As I said, the entrepreneur life is not easy. There will be many hours where you have to motivate yourself to work when you want to give up. To get through this make sure to base your business on something that inspires you. Continually seek inspiration so that your mind is stimulated and you can always find motivation when you need it.

Conclusion

Both the employee and entrepreneur mindsets have their merits and drawbacks and there is not a right or wrong mindset to have. Your personal mindset depends on your values, goals, and risk tolerance.

Whether you’re happy with the stability of an employee role or aspire to build something from the ground up as an entrepreneur, understanding these mindsets will empower you to make informed career decisions.

Remember, the path you choose is not set in stone. With determination and the right mindset, you can adapt and transition between these roles as your career evolves. It is never too late to switch and there is no shame in switching back if you find one is not right for you.

The key is to align your mindset with your ambitions and be open to change as your professional journey develops.