The fastest way to get rich is to start your own business. Most people believe that going to college and getting a good job will make you rich. I have news for you, the best way to get rich is to start your own business. All mega rich people like Donald Trump, Steve Jobs, Rupert Murdoch have their own businesses. The best thing is that anyone can do it.
Every time I tell people that the best way to get rich is to start your own business, most people back off and say, “But starting a business is risky.” Did you know that 9 out of 10 businesses fail in the first 5 years? And of the 10% that survive, only 1 in 10 survives more than 10 years?
I’m not saying this to scare you, quite the opposite. Because, did you know that you only need to get it right once? You only need to be successful in business ONCE to become rich. Robert Kiyosaki, the number one personal finance author and great entrepreneur, has started and closed many businesses. But getting just one right can make you ultra-rich.
These days, a failed business venture can cost you some of your time and a couple thousand bucks. I have had many failed online business ventures that cost me less than $100. But when you go big, you can make millions and millions of dollars. The reward far outweighs the risk. So don’t be afraid to start a business because you might fail, because if you fail, you can start over.
So why are businesses the best way to get rich?
1. You are creating an asset
The best thing about building a business is that you are building an asset. When you work at a job, the amount of money you make depends on how hard you work. You can only work so many hours and you can only work so much. As soon as you stop working, the money stops flowing.
With a business you are creating an asset. You can have other people working on your business so that even if you don’t work, you can still get rich. A business can generate passive income if you pay other people to run it for you. Your business can also be sold when you are done with it, and someone else can run it. It is an asset that will make you rich. A job is not an asset.
2. You can use a lot of leverage
Business is great because the fastest way to make money is to use leverage, and in business you can use a lot of leverage. Leverage is basically doing more with less. In a company you can do a lot with very little.
In a business, you can leverage other people’s money (such as banks’ money) to create your products and market your business. You can also take advantage of other people’s time and have them work for you so you can spend your time on other things. You can also take advantage of technology. I have many websites that work 24 hours a day. I’m selling 24 hours a day, although I don’t have to be online all the time.
3. You can keep more of your money
Tax laws are made for the benefit of those who create jobs, not those who have jobs. By running a business, you have much more control over when you pay taxes and how much you pay. In a job you have little or no control.
One of the problems with saving a dollar (for someone who has a job) is that you first have to earn $2 because you are being taxed at 50%. In business, you can claim a lot of expenses on a pre-tax basis, which means you pay less in taxes and therefore get to keep more of your own money.
Businesses can make you extremely rich, and you only need to be successful once in your business to become extremely rich. So even though people say it’s risky, it really isn’t. So why not think about a part time business that you can start?
