There could be many reasons you are investigating owning a business. Perhaps your current career is not delivering the results you want and you are ready for something new in your life. Congratulations on taking the first step to moving your life in a new direction. I am going to share some information with you about why starting a small business might be something you should consider.
The traditional job market can be a difficult place to make your dreams come true. Often, people find their “job" to be limiting and that their job description does not allow them the freedom to maximize their potential. In other words, most organizations include a small proportion of “Difference Maker" jobs that allow the job holder to create substantial value. The vast majority of jobs are more appropriately described as “Cog in the Wheel" jobs providing limited if any opportunity to make a material difference in the business. As a result, most people will not advance financially in the traditional job market.
You are probably very aware that our economy has changed substantially over the past thirty years. Globalization has created a much more competitive world economy in which most of the financial gains have been captured by the top 10% of the economic ladder. Middle class families have seen their wages stagnate while middle class expenses such as medical care, quality housing, college, and vacations have increased substantially. Look around your community and I think you'll agree that normal families are working harder and longer than ever to maintain their lifestyle. If you're like me, you may experience life as a lot less “certain" than it was for your parents. The days of lifetime employment, paid medical and defined benefit retirement plans are gone for most Americans and you may be wondering if you are on track to meet your family's financial needs.
Here are some questions the typical 40 year old might want to consider:
- Does your family earn at least $100,000 annually?
- Are you saving at least $10,000 annually?
- Do you have a net worth of at least $400,000?
If you can't answer yes to all of those questions then you may want to consider if your current path will deliver the life you want.
Building Wealth in Business
For the right person, owning a business can help them change their answers from “no's" to “yes's". Owning a business allows you to create more value by:
- Allowing you to leverage the work of others;
- Focus your efforts on high value tasks worth a higher pay rate;
- Own assets such as real estate, vehicles, and equipment that increase your net worth;
- Take advantage of important tax benefits;
There is a lot of information available to suggest that being a business owner can enhance your family's financial well being. For example, the 2004 Federal Reserve Board's Survey of Consumer Finances showed the mean annual wages of employed workers was $70,100 per year while self-employed people earned average wages of $141,500. Information on net worth shows similar advantages to owning a business. The report indicates employed workers have an average net worth of $268,500 while self-employed people have an average net worth of $1,423,200.
Starting and owning a business can be challenging and is not an easy path to success. There are no guarantees of success in business. However, my point has been that many people have found financial success in business ownership. More and more people are coming to the conclusion that the traditional job market is more about putting money in the boss's pocket than their own. If you feel your current job does not allow you the freedom to maximize your potential then you may want to evaluate your goals and personality to see if business ownership would be right for you.
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You'll have the opportunity to schedule a FREE NO OBLIGATION business consultation. If you are looking for an opportunity to kick some business ideas around this could be the opportunity you are looking for. No Pressure! No Sales Pitch!