Amazon recently expanded their appeal to employees regarding their Delivery Partner Service Program because they’re trying to stay ahead of the curve in delivering your packages from 2 days down to 1, refusing to give into competitors’ ability to compete for your desire to get that package even sooner than the normal wait time. What does that entail for its employees? Each Amazon employee who chooses to pursue this avenue of independence will receive $10,000 to start their business, as well as 3 months gross salary to help get them off the ground without sacrificing a lapse in funds but with everything there’s strings, including needing an estimated $30,000 of their own money to get started.
Quite an ambitious undertaking for the wealthiest company in the world setting aside an estimated $800 million, especially since they were automating their warehouse even further to help offset potential reorganization and unemployment on the company’s end. And imagine how this would play out with other major businesses who could offer the same type of incentive, but is the grass always greener on the other side?
Like many other employees dreaming about becoming their own boss, expecting the money to be rolling in without having to pursue other options because it’s an 24/7 automatic customer, there are certain things that people fail to realize in becoming their own boss.
Being a business owner, ask yourself the following since I need to explain that to many newcomers to the business world:
- When I can’t get out of bed because of illness, do I have any sick or vacation days?
- When I’m waiting on a check from my customer(s) to appear, who can I rely on?
- Who’s paying for mine as well as my family’s health, vision, and dental insurance?
- What happens if I just want to quit – am I knowledgeable enough to close my business and start working full-time again for someone else?
- Am I prepared to deal with the accounting of my income and expenses to file my tax return and pay those taxes?
- What’s it going to cost to get around when it comes to my gas, vehicle insurance, liability insurance, parking tickets, vehicle repairs?
- Can I afford to take a day off?
- If I hire some help, can I count on them 24/7 and are they independent like me or need to be considered an employee?
- Who will you have to complain to about your boss when you’re the boss?
- Can you take the chance and learn to adapt with making up your own rules to not only survive but thrive?
It’s not all doom and gloom when their employees start their business, and there will obviously be numerous success stories that will come out of this opportunity for many of Amazon’s employees. However, these are the questions that every person needs to seriously ask before starting their business and if they have the hutzpah to get it started.
Also, word to the wise, just the self-employment tax on the $10,000 start-up cost is $1,250.00 if they stay as a sole proprietor, and if they received an additional $10,000 in gross wages, bump that estimated amount up to $2,500.00. Now they get credit for half of that on their tax return, but that’s before they even make one dollar in their new business.
Dwayne J. Briscoe