Why young Aussies are sacrificing salary to be their own boss

Young Aussies are sacrificing a salary to be their own boss and enjoying great flexibility for travel and hobbies.

Young Aussies are increasingly choosing to tread their own path, sacrificing salary to be their own boss and enjoy greater flexibility for travel and hobbies.

Exclusive research from internet domain registrar GoDaddy reveals a quarter of Australians aged 18 to 24 years would rather own their own business than work for someone else.

One in five young Australians would also take a 20 per cent pay cut for a job they were passionate about.

“For previous generations of Australians, job security and pay were very important but young Australians … just don’t rate those criteria as highly when considering a career,’’ says GoDaddy Australia general manager Tamara Oppen.

“Young Australians are backing themselves to turn their passions into a business.

“They are running businesses and side-hustles that let them feel greater empowerment at work and the flexibility to let them pursue life’s other passions such as travelling, hobbies or spending time with friends and family.’’

Ellie Colquhoun, 22, is among those choosing to be her own boss, having founded health food company Musellie.

“Starting (Musellie) really was a case of me pursuing my passion for nutrition and my love of cooking,’’ says Colqohoun, who is partway through a Bachelor of Clinical Nutrition.

Ellie Colquhoun is her own boss at 22 after founding a health food company.

“My finances may not be what they could be if I was working normally (for someone else) but I know that this is what I want to be doing and I am on the right path.

“This (business) is like my baby. It’s literally everything to me.

“The best thing about it is it’s up to me to make the final decisions and I get to dictate where the business is going.’’

GETTING STARTED

Daniel Smith, from the Sydney School of Entrepreneurship, says there are ways to minimise the financial sacrifices that come with owning a business, particularly in the early days when costs often outweigh any profit.

“If people want to pursue (owning a business) they definitely can but they don’t have to do it exclusively,’’ Smith says.

“I’m a big proponent of trying it out with just 20 per cent of your time – you can do it at night and in your spare time, while you’re still working 9-5 (for someone else).’’

He says the benefit of a side-hustle is the measures of success are far more modest than if the business is operating full-time.

“People starting out might set a target of (earning) $20,000, instead of $100,000, but maybe that $20,000 starts to allow them to move further away from their (other) work and spend more time on their business,’’ he says.

And just as the notion of a job for life no longer exists, Smith says owning a business does not need to be forever.

He says skills learned along the way, such as critical thinking, problem solving, communication and innovation, will make entrepreneurs highly sought after by employers.

Financial advisor Helen Baker.

LONG-TERM SECURITY

Financial advisor Helen Baker recalls “going from a six-figure salary to nothing’’ when she started her company, On Your Own Two Feet, more than a decade ago.

She says while young people may be willing to endure short-term financial pain, they should never ignore longer term security by forgoing superannuation contributions.

“Setting up a business may put pressure on their ability to buy a property or they may make

other sacrifices – perhaps they can’t go out as much or they can’t spend much on clothes or cars or whatever,’’ she says.

“But I would definitely encourage them not to ignore their super – that’s something that is protected from creditors and from bankruptcy if the business goes bust or they get sued.

“It’s an investment that will be invaluable to fall back on in the future.’’

WHAT THEY WANT

What young Aussies value when choosing a career

• Pursuing their dreams – 58%

• Work/life balance – 58%

• Mental health – 35%

• Flexibility – 28%

• Financial security – 19%

• Job security – 19%

Source: GoDaddy