Start Your Business Today: Why It Might Be Worth It
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Chapter 1: The Reality of Entrepreneurship
Before diving into the reasons for starting a business, it’s essential to acknowledge a critical truth: there’s a staggering 99.9% likelihood that entrepreneurship won’t lead to wealth. The demands of running a business often exceed the financial benefits.
Personally, I’ve never been drawn to the idea of building a "serious" business, as my father already navigated that path. Growing up, I witnessed firsthand the immense stress that accompanies scaling a company.
My father’s construction company had a breakeven point of $1 million per month. This meant that even if the business generated $900,000 in a month, it could still incur losses. Moreover, his personal profit margin hovered around 6%.
To visualize this, consider this scenario: $13 million in annual revenue translates to merely $1 million in profit, of which only $60,000 would end up in my dad’s pocket. For context, the median salary for a U.S. high school teacher is approximately $62,870.
Operating an eight-figure business isn't always as glamorous as it seems. Many industries necessitate substantial scale before noticeable profits emerge.
Thus, this discussion centers on smaller, less time-consuming ventures, rather than tech startups or managing large teams. We’ll focus on opportunities like email marketing or curating Instagram theme pages—affordable business models you can pursue in your spare time.
With that in mind, let’s explore two compelling reasons to start your own venture.
Section 1.1: The Accumulation of Side Income
The so-called “gurus” often preach that you must earn millions in passive income each month to be considered successful. However, even minor monthly earnings can significantly enhance your quality of life.
A few extra dollars could cover a gym membership or your Netflix subscription. Larger amounts can be likened to the benefits of owning rental property or receiving a salary increase.
For instance, earning an additional $300 monthly adds up to $3,600 annually. While this may not fund a luxury car, consider this perspective: an extra $3,600 is akin to receiving a 3.6% raise on a $100,000 salary.
Alternatively, generating such income would require about $82,075 invested in Realty Income or tens of thousands in rental properties after mortgage payments.
Moreover, there’s always the chance you’ll discover a winning strategy or marketing approach that propels your finances forward.
From Financial Samurai, we see that the average net worth of a 30-year-old American was around $8,000 in 2022. Therefore, establishing a side business that generates $10,000 to $20,000 in profit annually could place you significantly ahead of your peers.
Subsection 1.1.1: The Value of Financial Acumen
Rick Ross, the infamous drug dealer, once stated that the most successful individuals were those who exited the game, invested wisely, and lived off the returns of their legitimate ventures.
I won't resort to cringeworthy comparisons between selling products online and illegal activities, but I will emphasize the unpredictability of online business.
Pre-pandemic, I managed a hotel aggregator that brought in $9,000 to $13,000 monthly (with a 4% commission). This seemed like effortless income, requiring minimal maintenance. However, from March 2020 onwards, that revenue dwindled to nothing.
Trends shift and consumer preferences evolve. In 2013, SEO blogging thrived; today, many former tactics are outdated.
When you work for someone else, it’s easy to take money for granted. You clock in, receive your paycheck, and go home. However, running your own business exposes you to financial fluctuations that typical employees rarely encounter.
Sales may soar in December and January, only to plummet by 90% in the summer months. Or a lucrative trend could suddenly collapse.
Such experiences compel you to adopt a defensive mindset. You’ll seek innovative ways to grow your finances and reinvest profits into stable, long-term assets. This perspective contrasts sharply with those who receive one-off payments and spend them impulsively.
Section 1.2: Conclusion
There are numerous low-cost or even free business opportunities available to anyone willing to try. Everyone should consider launching some form of income-generating endeavor.
Doing so can lead to unexpected financial rewards while fostering a more strategic approach to managing your money and growing your wealth.
The first video, "The 7 Reasons to Start Your Business Now," discusses why now is the ideal time to embark on your entrepreneurial journey. It highlights the opportunities available and encourages viewers to take action.
The second video, "Do You Have The Top 3 Qualities Of A Successful Entrepreneur?" explores essential traits for entrepreneurial success, emphasizing the importance of mindset and resilience.