Job vs. Startup: Which is riskier?

Starting something on your own can be a game changer, and I've seen a lot of people take that leap.

It makes you wonder: is it really riskier to go down this path of independence these days?

Think about it: you could spend six months applying for jobs and going through interviews, or you could use that same time to get clients for your own business.

One option leaves you waiting and in limbo, while the other gets you hands-on experience as you build something from scratch.

But there's one big thing that often gets overlooked in this whole conversation:

When you decide to work for yourself, you’re not just looking for a job - you’re also taking steps to protect what you create and the projects you start.

The Example That Stands Out For Me

You could design a beautiful landing page for a client, and then they disappear without paying.

Or you put together a detailed dashboard, and suddenly they want three extra features done for free.

This isn't just the hassle of freelancing; it highlights a major gap in how to guard your work and earnings.

While having a contract won't magically make you a better designer or developer, it’s important for protecting your time, money, and peace of mind.

You never know what can come up during a project - like scope creep, late payments, or clients ghosting on you.

How To Do This Right

The pros in the industry are the ones who think ahead. They tackle the “what ifs” in their contracts before starting a project to avoid misunderstandings later.

If you're thinking about launching your venture, it's important to plan carefully and have the right legal protections in place.

So here are five key questions I suggest your contract should answer to keep you and your work safe:

1. If the project gets cut short, what’s the deal with payment?

Your contract should make it clear that you get paid for all the work you’ve done up to that point.

To dodge any payment headaches, set out payment schedules and milestones upfront.

2. What if the client keeps changing their mind?

Include a clause that lays out the original project scope and how to handle any changes.

Specify that any extra work beyond what you agreed on will be charged at an hourly rate or per feature, and that both sides have to sign off on any changes in writing.

3. Who owns the work if the client goes AWOL or doesn’t pay?

Your contract should state that you keep ownership and copyright of all deliverables until you’re fully paid.

Only after receiving payment should the client be allowed to use the work.

4. What if the client takes too long to give feedback?

Make sure there's a clause in your contract about extending timelines if the client is slow to respond.

You might also want to mention that if feedback delays go on for too long (like 15 days), you can terminate the contract and bill them for what you’ve completed.

5. How will you sort out any disputes?

It’s important to have a dispute resolution clause that favors mediation or arbitration so you don’t end up in expensive court battles.

Define the jurisdiction for any disputes, usually where you’re based, to keep it simple.

Final Note

By making sure your contract answers these five important questions, you can not only focus on growing your portfolio but also protect your work properly.

So as you dive into creating slick websites or cool apps, remember that having a solid contract is as crucial as the actual creative work.

It’s the foundation for building a successful and sustainable business.