Can Your Business Make You Rich?
Many years ago I wrote a blog post that looked at the reality of how much money you actually make when you run your own business.
You can read the article here – Do You Want to Run Your Own Business? Read this First!
My premise back then was that most business owners don’t make a whole lot of money until they sell their business.
This situation is very similar to what an employee, who stays with the one company for many years, goes through. A business owner can make a salary level income year after year, and then one day, likely at retirement age, the business is sold and a nice lump sum of cash is returned, much like a superannuation or retirement settlement an employee receives at the end of a long career.
Obviously this situation isn’t ideal if you are an entrepreneur looking to create freedom in your life, both time and financial freedom. If you spend all day, possibly beyond normal working hours, in your business, and you’re taking home an income pretty much equivalent to a salary (plus you have many more responsibilities than an employee), you are not in a great situation.
Turning Cash Into Assets
If I look back over the last five years of my business life, there have been a handful of significant “spikes” in my income.
The spikes have occurred because of either of these events -
