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Salary negotiations can be one of the most stressful parts of the hiring process. You don’t want to offend your new employer but you don’t want to get shortchanged either. Making an appropriate counter offer requires a little skill and finesse to communicate your salary needs in a professional way.

That’s where knowing how to write a salary counter offer email comes in. A good counter offer email can help you build a stronger case for why you deserve a higher salary.

What Is a Counter Offer?

A counter offer is your response to the hiring company’s original salary offer. When you make a counter offer, you’re asking the company to reconsider its initial offer and bump the number. For example, if a company offers you a starting salary of $80,000, you might counter that with $85,000 or $90,000.

Making a counter offer is not uncommon, and some companies expect new hires to do a little bargaining for higher pay. There’s no guarantee that a counter offer will be accepted, but it’s still worth making one if you believe that you can get a better deal.

Writing a counter offer email can be a great way to communicate what you’re hoping to get. If you’re getting hired at your first job, you might not know how to write a counter offer salary email. The good news is that it’s not as complicated as you might think.

When To Counter a Salary Offer

There are different reasons that a job candidate might decide to make a salary counter offer. Here are some of the most common scenarios when a counter offer can be appropriate:

•   The company is offering a salary that’s below average for the industry.

•   You believe that your skills and/or experience are sufficient to command a higher salary.

•   The salary isn’t enough to meet your financial needs.

•   You’ve received a higher offer from a competing company.

If you’re negotiating salary for your first job, it’s important to find out what is competitive pay for this type of job and for someone with your experience?

Entry level salaries are naturally lower than salaries for people with more experience or education. That doesn’t mean, however, that you should automatically accept a lower salary for an entry level position if similar companies are paying more.

Researching pay ranges for the type of job you’re accepting can help you determine the high and low figures for a salary negotiation. It may also be helpful to know what trades make the most money and how much people earn at different levels within that trade or sector.

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Keys To Asking for More Salary

There’s some groundwork that goes into negotiating higher pay, either as a new hire or an employee seeking a raise. Here are some of the most important things to consider when asking for more pay:

•   Research average salaries across your industry for employees with skills or experience equivalent to yours

•   Know what you bring to the table, and be prepared to back that up with examples

•   Be confident in your approach

•   Be realistic and understand what the company can reasonably afford to offer you

Making your request for a salary increase in writing is also important, as it gives you an opportunity to outline in detail your reasoning for a pay boost. That’s where knowing how to write counter offer salary email messages comes in handy.

Should You Negotiate Your Job Offer (Even If It’s Already Pretty Good?)

Negotiating salary or other benefits isn’t something you necessarily have to do. And it’s possible that you might feel a little awkward asking your new employer for more money right off the bat. But it may still be worth negotiating certain aspects of your pay or benefits if you think there’s some wiggle room.

For example, you might be willing to accept a lower offer in exchange for stock if you think the company’s value is only going to rise in the future. One of the advantages of buying company stock through your employer is that you may be able to get it at a discounted price.

Tuition repayment assistance is something else that may be worth negotiating if you’re starting your career with student loans in tow. Employers are increasingly offering help with student loan debt and tuition to attract and retain talented employees. That type of benefit may be well worth negotiating if your company is open to the idea.

A signing bonus can also help balance out a lower salary. If the bonus is particularly lucrative, that might be a tempting reason to skip salary negotiations. Of course, you’ll want to brush up on the basics of how to ask for a signing bonus before you start negotiating.

Should You Negotiate Your Salary Through Email or a Phone Call?

If you’re interested in attempting to wrangle a higher salary from your employer, choose your approach carefully. Asking for a salary increase over the phone has its pros and cons. Your employer might feel like they’ve been put on the spot. Or you might be so nervous that you stumble over your words and don’t communicate your request clearly.

Putting your request in writing can take the pressure off both sides. It may be easier for you to explain why you feel you deserve a higher salary in writing and you can take your time with writing your email. You can expand on how you believe you’ll be able to help the company and why making a bigger investment in your salary is justified. You can also use your email to compare the salary offer to industry averages in order to underscore your case.

An email also gives your employer a chance to review your arguments and make a decision without feeling rushed. And should they decide to counter your counter offer, they may prefer sending it back to you in email format so there’s a paper trail of all salary discussions.

Steps To Making a Salary Counter Offer

Countering an employer’s salary offer can be nerve-racking, so it’s wise to have a plan or strategy going in. We’ve put together a helpful checklist for what to do when entering salary negotiations.

Research Comparable Salaries

As mentioned, it’s important to know what the average pay is for the industry and type of job you’re accepting. You don’t want to make a counteroffer that’s too far outside the norm of what employees with your same skill set and level of experience are making, as that can cause the employer to balk.

Wage data from the Bureau of Labor Statistics is a good place to start your research. You can also check salaries on sites like Payscale.com or Salary.com to see what kind of entry-level pay competitive companies are offering.

Review the Benefits Package

Before negotiating salary, it’s helpful to look at everything an employer is offering. That might include things like subsidized health insurance, a solid retirement plan, paid time off, stock options, tuition assistance, or a remote work option. Weighing the value of those benefits against salary can help you decide if it’s worth negotiating your pay.

If you’re offered great benefits but a lower salary, getting a second job can help bridge the gap. You may already have experience with making money on the side if you’ve ever held any jobs that pay for college, like babysitting, dog-walking, or doing gig work.

Know Your Value

A little self-awareness goes a long way. When you’re applying for your first job, you may not have a lot of professional experience under your belt yet. Instead, you can focus more on your college accomplishments, skills, personality traits, and other qualities that make you an attractive candidate for the job.

Take Time To Craft Your Counter Offer

The next step is the most important, because you need to make sure you’re wording your counter offer salary email carefully to convey what you want in a respectful way. You’ll want to start your email with a polite introduction and state your request briefly at the beginning. Then go into more detail explaining why you believe your counter offer is appropriate, and close the letter politely. It’s also important to verify to whom you should send the email to ensure it gets to the right place.

Negotiate With Your Employer

Once your employer receives your salary counter offer email, they’ll review it and then respond. The immediate response may be no, at which point you’ll have to decide if you want to continue attempting to negotiate. If the employer is willing to negotiate, you can then begin salary discussions to see if you can reach an agreement that suits you both. Being willing to compromise here is important, as coming on too strongly could cause the employer to rescind your offer and hire someone else.

Make Your Final Decisions

Once you’ve completed salary negotiations, your employer may give you a little more time to make up your mind. At this point, you’ll have to decide whether to accept their final salary offer or move on to another job. (By the way, hold onto the offer email — it can serve as proof of income for student loans and apartment applications.)

You may want to review your finances before deciding if the salary is acceptable. Using a free budget app can help you get a better sense of what kind of income you need to cover your spending.

If you decide to decline, you’ll want to do so politely. Burning bridges is a bad idea, in case you later apply for a position with the same company.

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Salary Counter Offer Email (Sample Templates)

If you’ve never attempted to write a counter offer before, you may not know what your letter should include. To make things easier, here are guides for how to write a counter offer email for salary in different situations.

Requesting Additional Compensation (Sample Email)

Dear [Hiring Manager],

Thank you for extending an offer at [company name] for the position of [title]. This is a very exciting opportunity, and I’m confident that I’ll be able to make a positive contribution to the team.

I am hoping there is room to negotiate the base salary for the role. According to my research, the industry average for this position is [salary range] for someone with experience and skills comparable to mine. I believe that a salary closer to [$$$] would be more appropriate, given my background and the requirements the role entails.

Please advise as to whether you’re open to discussing this at your earliest convenience.

Thank you and I look forward to your response.

Sincerely,
[Your name]

Responding to a Lowball Offer (Sample Email)

Dear [Hiring Manager],

Thank you for extending an offer at [company name] for the position of [titel]. This is a very exciting opportunity, and I’m confident that I’ll be able to make a positive contribution to the team.

I am hoping there is room to negotiate the base salary for the role, as it seems to be lower than the average salary typically offered for this type of position. According to my research, the industry average for this position is [salary range] for someone with experience and skills comparable to mine. I believe that a salary closer to [$$$] would be more appropriate, given my background and the requirements the role entails.

Please advise as to whether you’re open to discussing this at your earliest convenience.

Thank you and I look forward to your response.

Sincerely,
[Your name]

Leveraging a Competitor Offer (Sample Email)

Dear [Hiring Manager],

Thank you for extending an offer at [company name] for the position of [title]. This is a very exciting opportunity, and I’m confident that I’ll be able to make a positive contribution to the team.

I am hoping there is room to negotiate the base salary for the role, as I’m currently considering an offer from another company. They’re offering a base salary of [$$$] along with a competitive benefits package that includes [list any benefits your recipient’s company does not offer].

I’m very interested in accepting the offer to work at [company name] if you’d be able to [match or increase] the base salary. Please advise as to whether you’re open to discussing this at your earliest convenience.

Thank you and I look forward to your response.

Sincerely,
[Your name]

Accepting the Offer (Sample Email)

Dear [Hiring Manager],

I’m pleased to accept the offer for the position of [position name] with [company name] that was extended on [date]. I’m looking forward to working with the team, and I appreciate the opportunity to negotiate a compensation and benefits package that is agreeable to all parties involved.

Per our negotiations, I understand that my starting salary will be [$$$] and that my benefits package will include [list of benefits]. I look forward to beginning work on [date].

Many thanks,
[Your name]

Rejecting the Offer (Sample Email)

Dear [Hiring Manager],

Thank you for extending an offering of employment at [company name]. I’ve enjoyed getting to know you throughout the hiring process, and I appreciate your willingness to consider my request for salary negotiation.

At this time, I must respectfully decline the position. I thank you again for the opportunity to discuss the job, and I regret that we were unable to reach a compromise suitable to all parties involved.

I do hope that you’ll find a suitable candidate for the position.

Kind regards,
[Your name]

The Takeaway

It’s natural to want to be paid what you’re worth, and negotiating your salary may be necessary to get what you want when accepting a job offer. You’ll want to research competitive salaries for your industry and type of job, and also consider the full benefits package. In email communications with your potential employer, it’s important to always be polite, professional, concise, and confident.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do you politely negotiate salary via email?

Politely negotiating salary via email comes down to using respectful language and clearly explaining your needs and expectations. You want to state your case clearly and simply, then allow your employer time to form a response.

How do you politely counter a salary offer?

Countering a salary offer politely means making your case for better pay firmly but respectfully. You want to ensure that you’re directing your counter offer to the right person and explaining your reasoning behind for asking for higher pay.

How do you negotiate salary after receiving a job offer?

Once you receive a job offer, you can review the terms and draft a short email to ask if the employer is willing to consider salary negotiations. You then have to wait for their response to see if they’re open to negotiating. If they are, you can make your salary counter offer.

Photo credit: iStock/ibnjaafar

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q324-044

You made it through the interview process and have an official job offer via email. But how do you accept an offer letter? Say yes right away, or take time to think it over? Should you talk to your new employer on the phone even if you received the offer by email?

Before you commit, you’ll want to make sure you take the right steps. Here’s a guide to help you navigate the process once that job offer appears in your inbox.

How To Accept a Job Offer

It’s important to know how to reply to your new employer in order to show them you’re a professional and reinforce their choice in hiring you. Accepting the job offer with clear, respectful communication helps make a good impression and establish a positive rapport from the beginning.

Whether or not the employer offers you the job by email or phone, the first thing to know is you don’t have to give a definitive answer right away. Employers realize a new hire may need time to mull it over. It’s perfectly okay to reply with, “Thank you for the offer. I really appreciate it. May I take the next day or two to think it over before I respond?” This is important, particularly if you want to prepare to discuss salary, bonuses, your title, or other company benefits such as health or employer-sponsored life insurance.

Unless it’s urgent for the employer to fill the position ASAP, they will most likely be fine with granting you two or three days to make your final decision. Try not to take too long, though. It’s best to stay within a 48-hour timeframe so you don’t leave them hanging.

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Evaluate the Job Offer

If you’re taking a couple of days to give your final answer, you’ll want to truly assess if this position is right for you. First, and probably most important, is evaluating the salary offer. Is what they’re paying enough for you to live on, or are you going to need a side hustle or a second job to make ends meet?

Another factor to consider is whether the offered income is commensurate with the job’s duties, responsibilities, and your experience. Researching similar positions in the industry can give you an idea if the company is offering competitive pay.

You’ll also want to make sure you’re satisfied with the benefits package, work hours, and vacation and sick time policies. Is the employer offering any other perks that may seal the deal, such as college tuition assistance or an employer match on your 401(k) contribution?

Other factors you may want to evaluate include the work culture and environment. For example, if you tend to be someone who works alone and the company loves hosting afterwork happy hours or frequent team-building workshops, it might not be the best fit for you.

Lastly, think about your career trajectory and how this job might help move you forward. If it provides challenges, allows you to learn, and offers room for advancement, it may be a clear cut answer, especially if it’s your first job or you’re changing careers.

Questions To Ask the Employer Before Accepting a New Job

Before accepting an offer letter, make sure you get answers upfront to any questions you may have. During the time you’re evaluating your options, gather your thoughts and make a list of what you want to know. These queries can eliminate any doubts you might have, provide answers to questions you may not have asked during the interview, and prepare you for what to expect on your start date.

Asking important questions also clarifies what your role is, the company’s expectations of you, and in turn, what your expectations of the employer should be.

Some questions you may want to ask:

•   Is the salary negotiable?

•   When will I be eligible to receive benefits?

•   What types of employee savings plans are offered?

•   What types of pre-employment background checks or screening does the company do?

•   To whom will I be reporting to?

•   What should I expect from the onboarding process?

•   What type of training will I receive?

•   What is the company policy regarding remote or hybrid work?

•   Will I be expected to work late or on the weekends?

•   Does this position offer bonuses or commissions?

•   What’s the workplace dress code?

Negotiate the Job Offer

Seeing if there’s any wiggle room with certain aspects of the job is important before you make your official decision. For example, if the job doesn’t require you to be onsite every day, you might ask if you can work a hybrid schedule. Or perhaps there’s a possibility of a flexible schedule where you choose the 8-hour shift you want to work.

Although it can feel awkward and uncomfortable to bring it up, many employers actually expect potential new hires to bring up the salary subject. In fact, according to a poll by CareerBuilder, 73% of employers in the U.S. anticipate a salary negotiation upon the initial job offer. And bringing it up can literally pay off. A study by Fidelity Investments found 87% of young professionals aged 25 to 35 who negotiated their salary got at least some of what they asked.

(If you find yourself more interested in maximizing your income and managing your finances, a free budget app can help you get started.)

Talking to your new boss about salary before signing on may be the only time you’re in the driver’s seat in salary negotiations. Take advantage of this moment and the fact the employer wants you. Asking for more money, even if it’s for an entry-level salary, demonstrates you’re a confident, business-savvy professional who knows their worth.

If you want to negotiate the salary after you get the job offer, do your homework. Find out what salaries competitors are offering for someone with your skill set and experience, on such sites as Payscale.com, Glassdoor.com, or Salary.com. Set the bar high initially and ask for the top of your range, knowing you’ll probably end up somewhere in the middle between what you want and the maximum the employer is willing to offer. Be prepared to give reasons as to why you should earn more, touting your experience, accomplishments, and the value you’ll bring to the company.

In the event you don’t get your desired salary, see if you can negotiate for other things that might make up for it, such as a signing bonus or employee stock options.

Accept the Job Offer Over the Phone

A phone call is a common way employers let the applicant know they’ve landed the job. When that call comes, you’ll want to be prepared to know exactly what to say.

If you’re offered the job by phone, first thank the caller, confirm you’re interested, and express your gratitude for the opportunity to fill the position. This gesture helps to establish a good relationship and lets the supervisor know you’re enthusiastic. A reply can be as simple as, “Thank you for extending this offer. I’m delighted and am excited by the opportunity to work with you and the company.”

At this time, you’ll want to ask the employer to send you the written offer letter or contract detailing the conditions of employment, salary information, job duties, and benefits. Once you get it, review it carefully to make sure the terms are acceptable, determine what you might want to negotiate, and look for any small details in fine print that may not have come up during the interview process.

Follow Up With an Email

The process for accepting a job through email closely follows the same protocol as by phone.

In an email, you’ll want to open with a thank you for considering you for the position and say you’re excited about the prospect of joining the team. Here’s the opening to request time to think about the offer, letting them know you have some questions, and inquiring when it may be possible to discuss them. The person will then set up a time to talk on the phone or by video chat, or might ask you to send your questions along in an email.

You should also ask for the written offer here too, if it is not included in the email. If you’re recently out of school, your offer letter can serve as proof of income for student loan repayment plans and apartment applications.

Who Should You Email To Accept a Job Offer?

The person who officially offers you the job is the one to whom you should directly respond. At this point it will most likely come from the hiring manager or your future boss. Regardless, reply to the person sending the email. If there are cc’s, be sure to hit reply all to include those parties.

What To Include in a Job Offer Acceptance Letter

A job acceptance letter gives you the chance to document key points about your new job and clarify the terms of employment. Getting it in writing helps prevent future misunderstandings.

Your acceptance letter should include the following:

•   Thank you to the employer for offering you the position, stating the full job title.

•   A formal acceptance of the job offer.

•   Confirm the terms and conditions of employment: starting salary, health benefits, work hours, and start date.

•   Close by showing appreciation for the opportunity and your eagerness to join the company.

Advice on Writing a Job Offer Acceptance Letter

Don’t quickly jot off and send a job acceptance letter. Instead, carefully plan out what you want to say. Make sure it’s well-written, strikes a professional and polite tone, and covers all of the important bases. Be sure to proofread carefully for spelling and grammar errors before sending.

When composing the acceptance via email, create a concise subject line such as:

•   Acceptance of [Job Title] job offer – [Your name]

•   [Your Name] – [Job Title] job offer acceptance

Here are some sample templates to help you craft your response:

Job Offer Acceptance Letter Sample #1

Dear Ms. Jones,

Thank you for offering me the position of Account Executive with XYZ company. It is with great enthusiasm that I accept the job offer and look forward to starting employment with your company on [Month, Date, Year].

As we discussed, my starting salary will be $50,000 and health insurance benefits will be provided after 60 days of employment.

Please don’t hesitate to reach out at any time if there’s anything more you need from me.

Thank you again for giving me this wonderful opportunity. I am eager to join the team and make a positive contribution to the organization.organization.

Sincerely,
Your signature
Typed name

Job Offer Acceptance Letter Sample #2

Dear Ms. Jones,

I am writing to confirm my acceptance of your job offer on [Date job was offered] and to let you know how delighted I am to be joining the XYZ company as an Account Executive. I believe I can make a valuable contribution to the company, and I am very grateful for the opportunity you have given me.

As discussed, my starting salary is $50,000 with the full range of benefits granted to your employees. My scheduled work hours are from 9:00am to 5:00pm, Monday through Friday. I will report to work on [Start date].

Thank you for the confidence you have expressed in me. I look forward to a long and productive career with XYZ company.

Sincerely,
Your signature
Typed name

Job Offer Acceptance Letter Sample #3

Dear Ms. Jones,

I was very excited to get your call and receive the job offer for the Account Executive position at XYZ company.

After reviewing the offer, I had a few questions I wanted to run by you — particularly about the base salary and the company’s benefits package. Would it be possible to arrange a phone call to discuss?

Thank you in advance for your help with this. I look forward to speaking to you again soon.

Sincerely,
Your signature
Typed name

What to Expect When Accepting a Job Offer

Once you and your new employer have hashed out any negotiated terms in your offer letter, ask them if anything else is needed from you prior to your first day. If you’re employed elsewhere, inform your current boss you’re leaving and set your termination date (typically two weeks after you give notice). You’ll also want to determine if you have the option of utilizing COBRA to stay on your current employer’s health insurance plan if your new employer’s health benefits don’t kick in right away. And look into how to roll over your 401(k) to the new employer’s plan if you wish to do so.

Your new workplace may require certain things before you start, including filling out paperwork and submitting documentation for your HR file, plus drug testing or a background check. There may be an orientation, training classes you’ll need to attend when you start, and an employee handbook to study.

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The Takeaway

Whether you’re offered a job by phone or email, it’s important to respond in a timely, professional manner, especially if you decide to take the position. But you don’t have to say yes immediately. It’s acceptable to ask the employer if you can have a couple of days to think about it before you can make a final decision. Depending on what the company is offering benefits- and salary-wise, you may want to come to the negotiating table with the employer to see how to maximize your situation.

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Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What do you say when you accept a job offer?

Thank the employer, let them know you appreciate the offer, and communicate you’re excited about joining their company. Responding in an upbeat, positive way shows your enthusiasm and signals to the employer they made the right choice.

How do I accept an informal job offer?

You can accept the job offer over the phone or by email but follow the employer’s lead. If they call you, it’s best to respond in kind and accept it over the phone. In the case of an emailed job offer, you can send your response that way. Most likely, even if they offer you the job over email, the employer will follow up to solidify things verbally.

How do you say yes to a job offer?

Once you’ve sorted out any questions with the employer and completed any negotiations, ask for the offer in writing if you haven’t already received an offer letter. Read over the offer letter carefully to ensure all of the details are correct. If everything is in order, you can send the email confirming your salary, your job title, start date, and any other agreed-upon conditions. Be sure to thank them again and express again how much you’re looking forward to joining the team.

Photo credit: iStock/Tempura

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This article is not intended to be legal advice. Please consult an attorney for advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q324-045

Entrepreneurship is booming in America. According to the U.S. Census Bureau, a record 5.5 million new business applications were filed in 2023. While entrepreneurship is often portrayed as being exhaustingly hard, its many upsides are clearly enticing more and more people to dive in.

What are the benefits of being an entrepreneur? They can range from setting your own hours to having unlimited earning potential to realizing a personal dream. Some people nurture an idea for an innovative product or service for years and then set to work bringing it to life. Others are on a mission to help their community or a specific segment of the population.

Still others set out with the simple goal of making a lot more money than their current 9-to-5 gig pays.

Whatever your motivation, the benefits of becoming an entrepreneur can have a major positive effect on your life. Here, we’ll take a closer look at the perks of starting your own venture. They just may motivate you to take this next giant step in your career and charter your own path.

Read on to learn:

•   What is an entrepreneur?

•   How does entrepreneurship work?

•   What are the benefits of being an entrepreneur?

What Is an Entrepreneur?

An entrepreneur is a person who starts their own business to bring their dreams to life. Whether they envision opening a better coffee bar or developing a fitness app, they invest time and capital in their business ideas and work diligently to make them successful. Entrepreneurs often partner with other investors, employ workers, and take risks as they seek success.

Typically, an entrepreneur is an inherent problem-solver with a can’t stop, won’t stop attitude. In addition, many are brimming with confidence and conviction that their idea is a terrific one. They refuse to stay discouraged and just see the word ‘no’ as a temporary setback at worst.

The U.S. is full of success stories of entrepreneurs, whether that means the likes of Microsoft’s Bill Gates, Amazon’s Jeff Bezos, or any of the folks who win on Shark Tank. Many of these experienced numerous failures and pressure to give up from family, friends, and potential investors but persevered.

While the wealthiest entrepreneurs are popular symbols of accomplishment and can make it look easy, the truth is that most entrepreneurs have spent countless hours and tremendous sweat equity behind the scenes to become successful.

How Does Entrepreneurship Work?

Entrepreneurship is the opposite of 9-5 jobs. Instead of punching a clock or working on a project for a company, you depend on your own efforts to bring in some type of income. The grind can be brutal, especially at first when you probably aren’t making money.

However, entrepreneurship means more than wanting to work for yourself. To live as an entrepreneur, you need an idea for a business, service, or product to focus your efforts. For example, you might see an opportunity to succeed with a superior product or be the first to serve a niche market. Ideally, you’ll start earning money to put in your bank account for savings or to invest back in the business.

As an entrepreneur, you bet on yourself, which means you invest as much of your time and money into your business aspirations as possible. You might leave your job to pursue your dream or put in hours before or after your day job to get your business going. Either way, successful entrepreneurs often reach a point where they grow their company enough that they must dedicate all their time to it, hire others to take on some of the workload, or partner with investors.

In addition, some entrepreneurs even create social change through their business efforts.

Benefits of Being an Entrepreneur

Now that you understand how entrepreneurship works, here are some pros of being an entrepreneur.

1. Ability to Work from Anywhere

One of the key benefits of becoming an entrepreneur is you typically have the ability to work from home or anywhere else you may be. Since you can run many types of business online, you often only need a laptop and internet access to work as an entrepreneur. A work-from-home budget can be an economical way to launch your venture. So, whether you prefer your living room, a coffee shop, or a beach (as some digital nomads do), you have the freedom to set up shop wherever you like without necessarily paying rent for a workspace.

2. Having a Flexible Schedule

In addition to working from anywhere, you choose when you’ll work as an entrepreneur. As a result, you make your own hours,which may give you room for family time, exercise, or errands during the day.

Worth noting: Since the “office” never closes, some entrepreneurs are known to toil 16-hour days (or longer) to realize their aspirations. For this reason, setting your own hours can be a double-edged sword that may lead to overwork and burnout for some. Proceed with your eyes wide open, and remember that work-life balance can be valuable.

3. Ability to Make Key Decisions

As an entrepreneur and business owner, the buck stops with you, which is another empowering benefit of being an entrepreneur. You’ll decide how the business runs, the product or service to focus on, and the target market you’re trying to reach. You pick your team, your partners, and your company culture as the business grows.

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4. Growth in Leadership

A successful business requires an able leader. In all likelihood, entrepreneurship will give you opportunities to develop as a business owner and manager. You can learn new skills and expand your knowledge.

As a result, as you continue your professional journey, you’ll get the chance to become an effective boss, operations manager, and business development wrangler. All of which are pros of being an entrepreneur.

5. Ability to Give Back to Your Community

Success as an entrepreneur usually means growing your business to the point where you hire employees. As a result, your efforts may contribute to creating wealth and economic opportunities in your community, helping others support their families and accomplish their dreams. Additionally, successful business owners and entrepreneurs can invest in other companies and donate to charity, benefiting those around them. There’s one more way this can be an upside of entrepreneurship Your business mission may be one that uplifts others. Perhaps you’re developing a healthier snack food, for instance, or an app that helps people reduce their stress levels.

6. Choosing Who to Work With

As an entrepreneur, you might start your business slowly (a benefit of side hustles) or go in full tilt right from the start. Regardless of how you get going, you’ll determine who your partners and colleagues are, which can make for a very agreeable work life. Whether you occasionally speak with consultants, hire workers, or bring investors on board, you decide who gets involved with your business. Your independence as an entrepreneur allows you to intentionally create a work culture that fits your preferences. It’s empowering to have the ability to say “no” to working with someone who doesn’t fit your vision.

7. Being an Entrepreneur is Rewarding

One of the many benefits of becoming an entrepreneur is seeing success unfold, thereby proving the validity of your ideas and the impact they can have. Whether you develop a shampoo that people love or a service that helps disadvantaged students, knowing that your endeavor is finding an audience can be hugely rewarding.

In terms of finances, turning a profit on your business can be life-changing. Once you run payroll and address your business costs and responsibilities, the money you’ve earned can go into your bank account.

Whether you want to put money earned back into the business for more growth or use it to get a new car, seeing money roll in from your business can be incredibly satisfying. Instead of having a set salary, you’ll see how your very own efforts can drive your income and net worth.

8. Being Able to See the Fruits of Your Labor

Success as an entrepreneur is multifaceted and fulfilling: You could obtain financial freedom, see your business grow through meeting customers’ needs, mentor employees, and launch related (or unrelated) ventures. That feeling of having created something that clicks with an audience and builds a following is uniquely satisfying and can definitely boost your sense of pride and self-esteem.

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9. Creating a Positive Impact

Entrepreneurship goes beyond making an appealing product and profitable business. Your leadership can inspire others to pursue their dreams. Additionally, your company can create economic ripple effects, allowing others to achieve financial success and benefiting your city and beyond.

10. Income Is Decided by You

As an entrepreneur, you manage the money (at least during the start-up period). As your business evolves, you might get to decide whether you want to create jobs with better pay or scale your business quickly. You’ll also allocate funds and determine your own paycheck.

It’s a balancing act that you will be in charge of. For example, you might be less concerned with becoming a millionaire than you are with retaining quality employees for the long haul through robust compensation.

11. Networking Opportunities

Most successful entrepreneurs keep strong connections with others who are also starting their own ventures. For instance, you can learn from those who already had to rent workspace, run payroll, or deal with licensing arrangements. In the future, you might be the one tapped by a newly minted self-starter for that very same kind of information.

You’ll grow professionally through peer, mentor, and mentee relationships. No one knows it all, and tapping your network can be an effective way to solve business problems and find the right people to hire or consult.

The Takeaway

There are a myriad of benefits of being an entrepreneur, such as deciding your own schedule, boosting your earning power, and having the opportunity to impact people around you. However, successful entrepreneurship requires tenacity, willingness to learn from failure, and comfort with risk.

The beauty is that anyone can become an entrepreneur. Whether you start your business as a side hustle or leave your job to take the plunge, you have the power to create your own opportunity. You’ll get the chance to make important decisions, such as determining the location of your business, deciding how many employees to hire, and choosing the right bank account for your earnings. Being an entrepreneur can help you grow professionally, personally, and financially.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What are the drawbacks of being an entrepreneur?

The drawbacks of being an entrepreneur include not having a guaranteed wage or salary, possibly investing more hours into your business than you would at most jobs, and the real risk that your endeavor may fail. As a result, you might put all your time and money into a business venture only to end up with nothing to show for it.

Can anyone become an entrepreneur?

Anyone can become an entrepreneur; no specific certification or education is necessary. However, in some cases, business experience, a college degree, and professional training programs can increase your chances of being a successful entrepreneur.

How long does it take to become an entrepreneur?

One of the pros of being an entrepreneur is that it’s possible to become one quickly if you have a business idea plus sufficient available hours and capital to start your venture. However, finding success as an entrepreneur usually takes years of hard work.

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4.00% APY
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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