I write and talk a lot about how the now and future economy will be built by entrepreneurs. Not necessarily Steve Jobs or Bill Gates entrepreneurs, those that create billion dollar companies, but one man or one woman shops that create a phenomenal lifestyles for the owners. In my previous article, below, on how to choose a career, I discuss how one woman businesses are growing because many professionals give up the idea of finding a meaningful and stable job with a firm and because the barriers to entry have been significantly lowered with new technology.
One of my favorite business and marketing writers is Mitch Joel. This is what he wrote today.
Inc. Magazine ran an article titled, How The Rich Got Rich, in June of this past year. The article was based on an annual report by the IRS that provided data on the 400 individual income tax returns reporting the largest adjusted gross incomes and it was written by Jeff Haden. In this article, he deciphers the “watching paint dry”-boringness of this data to uncover some interesting kernels…
- Working for a salary won’t make you rich.
- Neither will making only safe “income” investments.
- Neither will investing only in large companies.
- Owning a business or businesses, whether in part or partnership, could not only build a solid wealth foundation but could someday…
- Generate a huge financial windfall.
The future of business is small and entrepreneurial (don’t tell the MBAs and consultants).
The workplace has changed. Economics are funky. The security of a steady job in a big, corporate company has all but dissolved. We’ve spent the better part of two decades watching these monstrous organizations crumble (some because of corruption, while others failed to innovate at pace). At the same time, we’ve seen instances where a company like Instagram comes along, plays by their own rules and – whether we like it or not – is able to be sold for a billion dollars to Facebook with not much more than a hope of future growth, expansion and revenue.
It’s not all about the money.
I’ll be the first one to raise my hand in admission that money is not the only driver for success in business and life. Being healthy, happy and doing important stuff that helps us develop at work needs to trump the income for our personal well-being, but wealth is (whether we like it or not) a leading key indicator as well. So, is it time to quit your job? That’s your call. What I can tell you, as an entrepreneur, is that these five data points provided by Haden in the Inc. Magazine article are in-line with my reasoning for becoming an entrepreneur in the first place. I can best sum up my reasoning with this one line of thought: I wanted complete control and responsibility for my financial outcome in life. Was it easy? No. It’s still hard – each and every day. But, I know that I have more control over my financial fate than when I was an employee and hoping that the next quarter’s result would not have a negative impact on my employment status.
What is the phenomenal lifestyle I reference above? It’s putting yourself in a position to remove the limits of what you can do.