If you’re thinking about starting a business, you no doubt have some concerns. You’re not alone.
These are the top concerns and question from enquiring clients.
1. Myth: I don’t have any money to start a business
This is the number one reason people talk themselves out of starting a business.
Fact: You don’t need money to start a business.
What you do need to make money, is a customer willing to buy. Someone to sell your product or service to.
If you have a customer you can sell them something, then you can pay for the goods with the money the customer gives you. You make an immediate profit. Invest the profit and repeat the process.
The point is you don’t need money to make money. You just need a product and someone who is willing to buy that product.
Tips: The best investment you can make is to invest in your education.
2. Fact: Businesses owners get better tax benefits then salary workers
When you own a business that makes sales, the tax you pay is on the money you make is after all your expenses. That means the cost of running the business is deducted first. The rest is taxable income. (Obviously this is not financial advise – Do not rely on this. Do your own research and make your own informed decisions)
If you work from home deductible expenses could be things you also might use in your daily life. Like your phone and internet connection.
As a salary worker you get taxed on the gross income you earn from a job. You will likely pay for things (like phone and internet) with your net income.
This is a huge benefit.
3. Myth: A business is risky
I hear this a lot. A business is risky because most businesses fail in the first few years.
While the statistic’s are true, there is a good reason why this is the case. If you spend time/money on your education. Or reading the posts on this blog. You will know why businesses fail. We teach you how to avoid the traps in business.
My Mindset is This: A job is as risky as starting a business.
With a job your risk is high without any of the rewards of running a business. If you lost your job, how long will it take to get another one?
You have no control over the income and are relying on someone else for your lively hood. This is a risk!
In business your risk might be high, but YOU ((and only you)) have the power it make it great. YOU can choose to avoid the risky activities.
- You are not relying on someone else for your income
- The upside rewards of being in business are limitless
Acceptance of risk
When you learn about starting a business you need to get to a point where you have a process to manage any possible risks.
This is my rationale for everything I do in life. Including business.
- What are the worst case consequences of [EG: Start a business]?
- What is the probability of this outcome?
- Is this an acceptable risk?
If you quit your job to run your business. What are the worst case consequences of this…
Upside: it could make millions. It could give you Freedom.
The downside: You might have to live below your standards, stick at the day job a bit longer or take menial jobs just to make ends meet while you build your business.
Is it really that bad? You know it’s not forever. And you can always work your way out of it – if things get really bad. Is that the worst case scenario?
- What if you set your business up while you had a ‘secure’ job
- Get everything to work in your spare time (away from your day job)
- Quit when you have sufficient income to replace the 9-5 job.
That will reduce the risk significantly. Think about what you could learn in the process.
4. Fact: Business, the path to wealth
Most first generation multi-millionaires didn’t become wealthy through employment.
Ask a salesman on the floor of a Mercedes dealership who their most common customer is? They will say “Business owner”.
Owning your own business is the one sure way to wealth. It’s not easy to start from scratch, but definably do-able.
Start while you’re still at the day job and build it up in your spare time.
With little money, and a few hours a day for 18 months you could replace your day job.
With a few more years of hard work, working full time on your business, you will secure your income for life.
If you have any questions about what you’re reading, please get in contact with me using the contact form.