032: Why You Need to Start Your Own Business Now [Podcast]

I have recently been convicted that small business ownership is not for just a few; it is for all. In this podcast, I want to share with you some of the reasons why you need to start your own business now.

I am consistently meeting people who struggle with finding employment. They are smart and energetic, but for some reason, they cannot seem to find a job. Some have legitimate reasons such as disabilities, age, or family situations which limit their options. When I meet them in person, these individuals are often down and out. All appearances suggest they are ready to give up. Many people have broken down in tears while discussing their situation and the economic impact on their families. As I have met with these people, I have become convicted of one key point.

Click to Tweet: Everyone should earn an additional 25% of their take-home pay in a small business.

Why? The answer is in the podcast!

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How Much Does My Small Business Need to Earn?

You need to make an additional 25%. For example, if you bring home $50,000 per year, your business should bring home (in profit) $12,500 per year. This extra income is not to become part of your household budget. But we will cover how to use the extra income later in the podcast. For now, let’s explain why you need to be increasing your income through a small business.

Five Reasons You Need to Start Your Own Business

1. Your small business is an emergency pump. In the case of an emergency, your business can generate a continual flow of money. On the podcast, I discuss the difference between the emergency pump and the emergency fund.
2. You get momentum. It is easier to grow than to start. Just like priming a water pump (for those of you have done this), all the work is in the starting. If you are no longer employed, it is much easier to go from $12,500 to $25,000 than it is to go from $0 to $12,500. Most of the work is in starting.
3. You become a better employee. As a business owner, you start to think and act like an owner.
4. Future employment is bleak. While this sounds negative, it is really positive. The traditional models for how to achieve success are changing. You will have to start thinking differently. If you are using the old model of “get an education and get a good job,” you will find yourself hurting and falling behind.
5. You will teach your kids a valuable skill. Kids will always do what you do, not what you say. Your kids will watch you, how you work, and how you think about work. Change the game now for yourself, and better prepare them for later.

What to Do (and Not Do) With the Extra Income

I promised to tell you how to handle that extra income to get the greatest advantage from your side job. Here it is: The extra income should be used to gain control of your financial situation. My recommendation is that you work your way through the Dave Ramsey Baby Steps. What you do NOT want to do is include this income into your household spending plan. This business income is not “Free money” like when you were a kid on a paper route to save for the next video game. You worked hard for this income increase, and you want to make sure the money, in turn, works hard for you. In the podcast, I outline how you can make your extra income work well for you.

Episode Resources

In this episode, I mentioned some resources, including:

• Platform Conference    (These conferences are no longer being offered – but you can certainly find something similar.)
• My Speaking Engagements
• Dave Ramsey Baby Steps

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[reminder]Do you have any reasons NOT to start a business? [/reminder]