Surprisingly, many young people would like to run their own business. Sixty three percent of people in their 20s are either running their own gig or are interested in doing so.
It’s very heartening to see the entrepreneurial drive so strong during a time of relatively low unemployment. Business is the great equalizer in life. I have met people who had relatively humble beginnings and, over the years, managed to build great wealth. There are some other really good reasons to run your own business.
It’s How You Get Rich
If you want to be rich, and I mean rich in terms of financial independence, not necessarily a billionaire, then you’ll have to accept a hard fact. That hard fact is that the best way to get rich is to increase your income. Earning more, combined with sacrifice, saving and investing, is how the majority of the rich got wealthy. It’s not very glamorous, is it? But it’s important to accept these facts because they will influence the decisions you make during your life. If earning more is the key to being wealthy, then that will guide you toward medicine, engineering and other higher-earning professions in college. If that ship has already sailed or you decided that school wasn’t for you, then running your own business will be the key to ascending into the upper income bracket.
You Are Layoff-Proof
The only way to be layoff-proof these days is to own the company. Ironically, many people take their first steps in self-employment after being laid off from a day job. Why wait for a pink slip to get started? Start learning the basics of profit and loss, branding, marketing and licensing while you’re still working. Take a class in basic contract law, accounting and learn how to use QuickBooks and tax software. Those are all skills you’ll need to be a successful business person, and you can take those first tentative steps while you’re still working.
You’ll Like the Boss
The only way to truly like the boss is to be the boss. I’ve worked for some awesome people over the years and, unfortunately, some very bad ones. Running your own business means that you don’t have to be trapped in a dysfunctional relationship with a customer. If it’s not working out, pass them off to another vendor or let them know you can’t help them anymore.
When you run your own business, you learn right away that the tax code was written by and for people running businesses. Sure, you hear a lot of complaining about taxes but, overall, running your own business gives you a lot of leeway. Keep good records, pay a good accountant and you’ll be amazed at what you can deduct.
If you work for someone else, you can’t pass that job on. When you die, you’re gone and so is everything you built along the way. But grow a successful company and that will live on long after you’re gone. That’s a business you can pass on to your family that will continue to provide for generations in the future. You’ll also be providing a living for your employees and being a resource to your community, even after you’re gone. What we do for ourselves dies with us, but what we build for others will live on.
There are, of course, many other great reasons to run your own company but those are the big ones. Enjoy life more, pay less in taxes and build a legacy you can pass on to your kids. Those are all good reasons to learn how to run your own business.