The average person thinks having a job is safer than entrepreneurship.
They're wrong.
Here are 9 reasons to bet on yourself:
They're wrong.
Here are 9 reasons to bet on yourself:
1. More value capture
Whether employee or owner, income is a function of value creation.
The only difference?
Some (or most) of an employee's value flows upstream to ownership.
Owners capture ALL of the value they create, and even more from their team's output.
Whether employee or owner, income is a function of value creation.
The only difference?
Some (or most) of an employee's value flows upstream to ownership.
Owners capture ALL of the value they create, and even more from their team's output.
2. Income diversification
Entrepreneurs spread income across several accounts/business units, acting as insurance against total income loss.
Employees have a single income source AND are exposed to factors out of their control:
- economy
- corporate pivots
- budgets
Entrepreneurs spread income across several accounts/business units, acting as insurance against total income loss.
Employees have a single income source AND are exposed to factors out of their control:
- economy
- corporate pivots
- budgets
3. Low downside
In the past you needed an investment or debt to start a business.
In 2022 you need an internet connection, creativity, and consistent effort.
EX: you can start a 7-figure agency business (65%+ margins) for a few hundred dollars per month in software fees.
In the past you needed an investment or debt to start a business.
In 2022 you need an internet connection, creativity, and consistent effort.
EX: you can start a 7-figure agency business (65%+ margins) for a few hundred dollars per month in software fees.
4. Time freedom
Successful entrepreneurs use leverage (labor, capital, code, audience) to disassociate their time with income.
Employees are required to be present in-person or on calls/video, making it hard to use leverage to get more done with less time.
Successful entrepreneurs use leverage (labor, capital, code, audience) to disassociate their time with income.
Employees are required to be present in-person or on calls/video, making it hard to use leverage to get more done with less time.
5. Scaling income
Employees are rewarded for the value they bring to an organization.
Owners are paid for the value their service brings to CUSTOMERS.
Using leverage, owners can add value to thousands or millions of customers. Their income isn't limited by their own effort.
Employees are rewarded for the value they bring to an organization.
Owners are paid for the value their service brings to CUSTOMERS.
Using leverage, owners can add value to thousands or millions of customers. Their income isn't limited by their own effort.
6. Exiting the business
Both employees and owners work hard throughout their careers.
But employees can't "sell" their career at the end. There is no residual value past their savings.
Owners capture the cumulative financial value of their daily efforts via a sale.
Both employees and owners work hard throughout their careers.
But employees can't "sell" their career at the end. There is no residual value past their savings.
Owners capture the cumulative financial value of their daily efforts via a sale.
7. Tax benefits of ownership
In 2022 employees are able to direct $20.5K into their 401k for tax deferment.
Owners can defer $61K, pay phone bills, 100% of healthcare, depreciate vehicles/equipment, etc.
The American Tax Code is designed for asset ownership, not employment.
In 2022 employees are able to direct $20.5K into their 401k for tax deferment.
Owners can defer $61K, pay phone bills, 100% of healthcare, depreciate vehicles/equipment, etc.
The American Tax Code is designed for asset ownership, not employment.
8. Accessible markets
Tools like LinkedIn, ZoomInfo, etc. have reduced the risk of ownership.
How?
Getting a product/service in front of a target market is now easy and inexpensive.
Failure from lack of distribution and awareness is mitigated via democratized data.
Tools like LinkedIn, ZoomInfo, etc. have reduced the risk of ownership.
How?
Getting a product/service in front of a target market is now easy and inexpensive.
Failure from lack of distribution and awareness is mitigated via democratized data.
9. Satisfaction of building
There is immense pride that comes with growing an idea into something that:
- provides for families
- gets results for clients/customers
- adds value to a community
Taking a business from "idea" to "impact" is a rewarding experience.
There is immense pride that comes with growing an idea into something that:
- provides for families
- gets results for clients/customers
- adds value to a community
Taking a business from "idea" to "impact" is a rewarding experience.
Entrepreneurship isn't risk free, but neither is traditional employment.
The truth is... the world is full of risk and you have to calculate your own tolerance based on your lifestyle/ financial goals.
And don't be afraid to bet on yourself.
The truth is... the world is full of risk and you have to calculate your own tolerance based on your lifestyle/ financial goals.
And don't be afraid to bet on yourself.
Thanks for reading!
Follow me @barrettjoneill for daily content on:
- building profitable companies
- dominating online
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- Entrepreneurship
Follow me @barrettjoneill for daily content on:
- building profitable companies
- dominating online
- SEO
- Entrepreneurship
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