Let’s talk about entrepreneurship. There are so many people that don’t have entrepreneurial experience but would make great business owners if they just gave themselves the chance. We’re all scared of the unknown, but I’m going to tell you why you don’t need to be so afraid.
The future can be daunting when you are unsure of where your income is going to come from. There is an enormous fear of failure, or not have that steady paycheck or not being able to provide for your family. As a society, we have normalized nine to five jobs, whether it comes with a salary or hourly pay. We have treated this as if it is the best and safest thing to do, but this is not the case.
As a regular employee, you do not have diversified finances. Diversification is a big term in the financial services world—everyone recommends a diversified portfolio. Your portfolio is all your financial investments, whether it be stocks, savings, real estate, or other assets.
The reason for diversification is simple. If one of those pillars of investments goes down, you want to have other sources of revenue as backup. If I invest all of my savings into Apple and the market swings, I lose all of that stock value and my one source of income is gone.
If you are an employee, how many sources of income do you have? One. All of your money is reliant on market changes and the boss of your company. Your entire livelihood, your ability to provide for yourself and your loved ones, relies on this business owner doing a great job.
Without a diversified portfolio, it is easy to be displaced. Employers might choose to hire someone else for less pay or replace your job with artificial intelligence. Because of all these risks, it is actually much safer to be an entrepreneur. This is because you are in control.
As a business owner, you have thousands of sources of income: your customers. If one customer decides to move their business elsewhere and no longer gives you money, you still have many other customers to serve and who will give you revenue. For a W2 employee, you have one source of income: your boss. If they fire you, that is it.
As an entrepreneur, you define your future. Money will come in more consistently than a nine to five job because you decide how you will make it, who you will work with, and why you are in this business. Creating a network of like-minded people and getting them to value your product or service is easier than you think. If you put in the work, the money will come.
Do not buy into the notion that allowing another person to control your finances is safer than working for yourself. If there is one thing I would say to all the people holding themselves back, it is do not be afraid of entrepreneurship.