Are you hoping to retire as on of the traditional business owners? Let me give you my thoughts on what I have seen and learnt about them.
Some people opt for the big dream—They look forward to building their own business where they are the boss and they call the shots.
It’s an exciting idea, isn’t it?
Step one: They use their life savings, take on new debt, and many times borrow money from friends and family to get started.
Step two: They take on more debt in the form of leases and personal guarantees in just about every direction.
Step three: Now instead of focusing on what they are good at (let’s say they were great at sales and decided to start their own business), they have to be all things to all people.
They act as attorney for legal matters, accountant for financial matters, babysitter for employee matters, negotiator for purchasing matters, and collection agency for accounts receivable matters.
They even get to take out the garbage. They are doing EVERYTHING but selling, which is what they were good at in the first place.
Step four: They struggle. Instead of owning the business, the business owns them. They are the first person to work and the last person to leave.
And after everyone else gets paid, they might be able to take home enough money to pay their own bills, let alone reduce the debt they incurred to start the business in the first place.
Step five: They succeed or they fail. They either hit a point down the road where the business is successful, or they fail, many times filing for bankruptcy and falling back into a corporate or sales job.
And even if they are successful, that usually means a lifetime of long hours and stress. Sounds romantic doesn’t it? If you haven’t started your own business before, ask friends who have if this description isn’t accurate.
Most people who start with a traditional business approach aren’t worried about getting a return on their investment.
They just want a return OF their investment. It’s pretty clear that traditional business ownership can’t provide the Perfect path to a retirement of comfort and leisure.
My best advise is for you to take the best path to financial freedom through entrepreneurship along side everything else you are doing.
Return from traditional business to retirement investment plan