A highlight from What Millionaires Won't tell You About Running a Business
It's brian preston. The money guy. I am so excited about this. Because i think a lot of folks. They hear about small businesses and entrepreneurs and starting their own thing and being their own boss and they think about it as this like really aspirational super. Exciting super high. Achieving thing that they want to do. But i worry that a lot of it will realize it's more than just unicorns and rainbows. It's more than just a happy time. There's some other thoughts you need to go into whether or not it makes sense for someone to start a small business. I think it's getting to the language this is that i'm such a simple guy. Talk about small business owner but if you go on and if you've watched enough bachelor and other things always think it's obnoxious when people. Their title is entrepreneur like jaggi wa just sound so fancy when you say terms like entrepreneurs other things and it is one of those concepts i feel like is deemed sexy and if you go on social media there's so many aspirational people out there. That are pushing products and other things saying you too can be part of this cool club if you'll just do this if you'll just do that. And so why is being an entrepreneur. Small business owner so sexy to the public. I think when folks think about it you know. It's obviously the freedom that it provides but there is a wealth component to it. This is researched from you and you wider. And they said that. Eighty one percent of the wealthiest one percent of folks are entrepreneurs and here in the united states entrepreneurs on thirty three percent of us wealth but only make up about seven point six percent of the population. So i think a lot of people arrive at this conclusion that okay. If i'm going to be an entrepreneur. If i'm going to start a business then i will be wealthy. It's natural thing that they assume sort of this cause and effect relationship and while sometimes it does work out that way. It's not always that way. Yeah i thought it was interesting thirty. You know when you talk about the thirty. Three percent of us wealth is comes from seven point six percent of the population when we surveyed our entire client base. That came from the money guys show when we do. Our annual welt survey it was right at eight percent so it was kind of interesting to see how much at todd to the this research but this is this is only part of it and when we see the the riches or the wealth is created. I feel like this is the glossy part of the brochure. That so much. Financial media has jumped on it creates. It's almost like a false mirage of. Hey everybody should do this. And into the point that there are so many blog posts are so many articles so many columns that i just consider vague dribble. They don't really tell you if you are aspirational or if you have a talent that you wanna uncork and unleashed on the world. Why doesn't the content that's being created for this scratch the itch and tell you how to do as versus just make you feel good about what happens if you start this journey. Yeah we were doing some some pre show. Prep around small business and entrepreneurship in there. Was this article from inc right. And it laid out fifteen reasons. You should start your own small business day. And i just thought it'd be really interesting. Talk about some of these reasons. Very quickly brian for you. Someone who has started a number of small business over the last twenty or thirty years. You've been doing this. A number of small businesses. Would you say like these would be the reasons why this started number. One was it. Because you had the time i'm just sitting around. I got a lot of extra time. Maybe i should just smart star small business. Maybe i should be not for door was that did you do that. No that's that's good though vm. Extra time is definitely necessary. It's shows something. What about this. You have the money. Oh here's a reason why you start your business. You get the money because most small business owners. They got money laying around before they start the business right. I mean this is very vague advice and keep going. What about number three. You have the courage right. Well if you're brave enough to go on your own then that's a sign that you should maybe do it or number four. You have the right connections. Okay i know folks come from a certain place or a certain areas certain families. So maybe i should do this. What about number five. You're never late to any party. I don't even know what that means. I don't even know why he was considering that to be one of the reasons that show much to start their small business. But if i were reading this article in thinking okay. I've been thinking about soccer. Preneurs thing how to check the boxes of whether this fits for me. I don't know that this is the advice that i would allow these reasons. Be the reasons why i decide to hang a shingle and go out on my own and try something i think you take the vagueness of the advice you think about the actual stats of how many people are small business. Owners are entrepreneurs and it's it's less than eight percent so that means it ninety. Two percent of the public is not going to be a small business owner but yet we have industries magazines. And so many other things telling you everyone should do this. There's a disconnect. So all i can say is it seems like a wad of this is because you can get rich doing it and then the question. I always come back to is rich enough to why you should start a small business. Yeah i think. I think a lot of folks they fall into this trap of okay. I'm gonna start to small business. And this is going to be the outcome. I'm going to create this world changing thing or this life changing thing and it's going be unbelievable but statistics actually tell quite a different story. Twenty percent of small businesses fail in the first year twenty percent of small businesses. Do not make it past the first year and after five years fifty percent of all small businesses fail in after ten years. It's seventy percent so it's a hard thing once you start a small business. It's not a guarantee that it's going to work. It's not a guarantee that it's going to be successful and it's not a guarantee if you're starting it to be wealthier to be rich. That's going to be an outcome that you're going to recognize just by simply working through the process. It's definitely the road less traveled. And look i will tell you. I think i love it. It has created. I was thinking about how blessed we are driving into the office today. Knowing we're going to do this show on how unique it is. We get to create content. We get to do financial planning all things that i just felt like. We're put on this earth to do. And we get paid to do it. We have employees and grow affirm it really is one of the most fulfilling an incredible things. But there's so many steps. Everybody always sees the end results.