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Risk and entrepreneurship:
Starting a (low risk/ low cost) business is LESS risky than working for a company.
Side note: all entrepreneurs should first start a low cost/low risk service business to generate cash flow and learn about selling and delivering service.
Starting a (low risk/ low cost) business is LESS risky than working for a company.
Side note: all entrepreneurs should first start a low cost/low risk service business to generate cash flow and learn about selling and delivering service.
Once the basics are mastered, then it may be time to lever up, raise capital go for something "bigger".
Back to risk and entrepreneurship.
Imagine a sales job offer of $40K + commission.
That sounds much safer than starting a business with no immediate income, but is it?
Back to risk and entrepreneurship.
Imagine a sales job offer of $40K + commission.
That sounds much safer than starting a business with no immediate income, but is it?
No, because Company X is not going to keep a salesman that cannot sell employed longer than 3 or 4 months.
(see Frank Slootman discussing A, B, and C players).
If the salesman decided to start his service business, he must sell or he will not earn any money.
(see Frank Slootman discussing A, B, and C players).
If the salesman decided to start his service business, he must sell or he will not earn any money.
Either way, the salesman MUST produce! Whether he works for Company X or himself the only option to earn... is to make sales.
The "safety" of his job is:
$3,333/mo BEFORE taxes.
a "guarantee" of 3-4 months.
The "safety" of his job is:
$3,333/mo BEFORE taxes.
a "guarantee" of 3-4 months.
The "safety" of taking the job at Company X is between $10,000 - $13,000.
What about starting the low cost service business? What's the advantage or upside?
What about starting the low cost service business? What's the advantage or upside?
Let's say the salesman started digital marketing agency offering SEO services.
The market rate for services is $2,000/mo and the skill can be learned for FREE online.
He can service 10 clients by himself and will incur costs of $500 per customer.
The market rate for services is $2,000/mo and the skill can be learned for FREE online.
He can service 10 clients by himself and will incur costs of $500 per customer.
If the salesman we're going to succeed at Company X he'd be lucky to double his salary with commission to make $80,000.
If he can convince 10 small businesses to give him the reigns over their SEO he will earn $180,000 PROFIT in 12 months after signing his 10th client.
If he can convince 10 small businesses to give him the reigns over their SEO he will earn $180,000 PROFIT in 12 months after signing his 10th client.
He will outearn his salary by signing 3 clients which can be signed within 6-8 weeks of starting.
Since he owns his own business he also gets the benefits of ownership:
-Write off depreciating assets that benefit the business (Bonus depreciation)
-Tax savings on home office
Since he owns his own business he also gets the benefits of ownership:
-Write off depreciating assets that benefit the business (Bonus depreciation)
-Tax savings on home office
- higher tax deductible rate for solo 401(k)
- professional service deductions
- many more
There are thousands of talented salespeople that can earn (and keep) more money by becoming self-employed over working for Company X.
- professional service deductions
- many more
There are thousands of talented salespeople that can earn (and keep) more money by becoming self-employed over working for Company X.
Technology reduces the risk in starting a business. Keep it low risk create cash flow.
Cash flow + more free time = more opportunities.
Cash flow + more free time = more opportunities.
