Going In-House Vs. Starting Your Own Firm

When Cory Booker’s presidential campaign—and my job—ended in January 2020, I wasn’t sure what I wanted to do next. But I did know one thing: I had no interest in becoming the head of communications for another elected official, organization, or company.

I’d worked in plenty of similar roles by that point. While each new job would bring a learning curve in the beginning, I knew that after a few months, I’d start to feel bored. That realization pushed me toward something new—building my own business.

As I started down this path, the pros and cons of working for someone else vs. running your own firm became clearer and clearer.

Good Job Vs. Building a Business

I’ve had conversations with many successful professionals in DC who are torn between taking a well-paying, prestigious job with meaningful work vs. starting their own firm.

For some, the idea of turning down a high-profile role for the uncertainties of entrepreneurship seems crazy. But for others, that uncertainty is exactly what excites them.

In almost every conversation, I can tell within minutes which path someone should take—just by listening to how they describe the decision. Some people thrive on problem-solving, unpredictability, and hustle (yes, this is a good thing). They see the reward ahead, not just at the finish line but throughout the journey.

Others, however, are better suited for the stability of a salaried job. They value predictability, a guaranteed income, and clear responsibilities. They don’t want the burden of generating 100% of their income. Maybe they have a newborn at home or a sick parent to care for, and right now, they need stability over risk.

There’s no judgment in choosing either option—but knowing yourself is key.

For me, building something from the ground up has been far more interesting, satisfying, and motivating than anything I could have found in-house.

Re-Thinking Risk

Most people think starting a business is riskier than working for an employer. Of course there’s risk—it’s not easy with literally everything depending on you. But I view the risk with more nuance.

If you work for one company, you’re 100% dependent on them for your income. One decision by one person—a CEO, a board member, or your boss—can end your job overnight.

In contrast, when you run your own business, your income is diversified. Losing one client doesn’t mean losing everything. You’d have to lose every client at the same time—something that’s far less likely to happen than getting laid off from a company.

Earning Potential & Business Development

Let’s talk numbers, starting with a short-term view. If you’re a VP at a large, well-established firm, you might make $200,000+ a year with a new business bonus that brings you into the $210k–$220k range (maybe a little higher). That’s a great salary.

But on your own? That equivalent salary is about $240,000/year (read my post on taxes if you’re wondering how I arrived at this number). That’s $20,000 per month. With as few as two solid clients, that number is very achievable—and exceeding it doesn’t require an unreasonable amount of effort.

In the medium term, if you stay at a firm, the only way to earn more is by either bringing in more clients to increase your new business bonus or getting promoted—which often means… bringing in more business.

If you’re avoiding starting your own firm because business development feels intimidating, guess what? If you want to rise in your firm, you’ll have to do business development anyway—but you’ll only see a fraction of what you bring in.

On your own, you’re always in business development mode, but the difference is 100% of the revenue accrues to you or your business.

Long-Term Growth & Equity

At a firm, becoming a partner (and earning equity) is contingent on your ability to help the firm grow—primarily through business development. Even if you achieve that milestone, you’ll still receive only a fraction of the firm’s overall revenue. It can be a highly lucrative setup, but your future is ultimately in someone else’s hands.

When you start your own firm, you own 100% of it from day one. Granted, that equity may not hold much value initially, but as the business grows, it has the potential to become extremely valuable.

In some cases, it can become valuable enough to sell for a significant sum. While selling a services firm is challenging—and valuations tend to be lower than in industries like tech—the opportunity still exists, and many entrepreneurs have successfully done it.

Ensuring Sustained Purpose in Your Work

Yes, money matters—but so does your day-to-day quality of life.

As a VP at a firm, you’ll be assigned clients. You might love some and dread others—either because of the people or the goal of the project, or both—but you don’t get to choose. The business model wouldn’t work if employees could just opt out of difficult clients, picking and choosing a la carte.

Over time, this can wear on you—especially if you’re only working on corporate clients with no greater mission beyond maximizing profits. You might start feeling burnt out, jaded, or ready to move in-house.

When you own your firm, you can become more selective. You can maintain a sense of purpose in the work with each client you accept, ensuring you are making an impact. The better you are at business development, the more power you have to say no to bad clients, end relationships with clients who don’t respect or value you, and work exclusively with clients you enjoy—while still growing revenue.

The Power to Choose Your Team

When you own your business, you hire everyone on your team. You don’t have to tolerate bad culture fits just because they bring in revenue. In big firms, a top-performing employee with a toxic attitude might be kept around because they make money. In a smaller firm, one bad apple can derail the entire culture.

As a small team, everyone has to pull their weight. That’s why I’ve been diligent in hiring—because every person matters for our success.

Flexibility & Freedom

Even the most flexible boss isn’t as flexible as being your own boss. Yet it’s not just about working from home last-minute to let the HVAC guy in to get the heat back on or working remotely for a few days to accommodate personal travel. It’s about having the freedom to test new ideas, shift business strategies, or take bold steps when something isn’t working.

Here’s a great example. We just changed our firm’s name this month. It was a well-thought-out decision, but I didn’t need to get approval from five people over six months on budget, concept or process. We moved quickly—because we could.

Conclusion

Turning down a high-paying job can be tough—especially when it’s the kind of opportunity many of our parents would have dreamed of.

But some of us need more than the traditional job. For those considering this path, I’ve outlined some of the real benefits—from higher earning potential and greater autonomy to more job security and long-term equity. If you’re weighing the decision and want to chat, feel free to reach out—I’d be happy to discuss the pros and cons in greater depth.