There are many reasons to enter the entrepreneurial world, but there are people who approach this activity to "get rich".
Some studies reflect how entrepreneurs, throughout their careers, live happier lives and earn more money doing what they love. And there are several stories of entrepreneurs selling their businesses for billions of dollars because their ideas changed the world.
Not surprisingly, many people start a business with the idea of becoming billionaires. But the reality is that the simple fact of having your own company does not imply having a great monetary fortune. Here are the reasons:
1. Many businesses fail
It's hard to come up with a good business idea, and as multiple sources show, 90% from startups fail. Not only do you need an original, attractive and money-making idea, you also need to have proper timing.
And having a good idea is only the first part of the formula: you must also execute your plan perfectly and you must be willing to change when circumstances evolve. For these reasons, many businesses fail.
Even if you have absolute confidence in your abilities as an entrepreneur, you are not free from the possibility of being a victim of the terrifying statistic.
2. The stories of millionaires - instantly they are rare and very exaggerated
There's a reason superstar entrepreneur stories are known to all: the media loves this news. This is how these entrepreneurs become idols for business owners and attract many inexperienced people to think not only that overnight success is not only possible, but probable.
In many cases, these stories are exaggerated and rare. The truth is, it takes years of work and the ability to overcome multiple failures before a person reaches the point of being a millionaire. If you are unable to accept these common obstacles and overcome them, you will never be a millionaire.
3. Running a business is expensive
Don't forget that running a business is much more than just collecting profits, you also have to pay for everything that happens behind the scenes, even expenses that are not seen.
You pay for raw materials, human talent, utility costs, rent, equipment maintenance, and don't forget, taxes and legal fees. Even if you have the idea of producing something simple, there are a million expenses to consider.
Many novice entrepreneurs underestimate how expensive it is to run their own business.
4. There are many variables that are not seen
No matter how careful you are when planning your business, there are always factors that affect your business that you never consider. A new competitor emerges, a new technology can transform the way people see your product, and so on.
Beyond that, your earnings can explode overnight or disappear without a trace. It's difficult to forecast exactly how a market might change, and if you're not ready to deal with that uncertainty, you're going to hit the wall.
5. Having a lot of earnings will not make you rich
This is an important lesson that is forgotten amid the thrill of becoming an entrepreneur: You must have financial skills to become a millionaire. You may have a successful business that leaves you millions of dollars, but if you spend all your money on nonsense and don't invest wisely, you will probably end up with nothing.
No matter how successful your company is, getting rich and staying rich requires a lot of attention, savings, smart investments, and responsibility.
6. Most wealth is formed from various sources
This is another lesson to keep in mind. Although many entrepreneurs have strengthened their accounts through their businesses, most personal fortunes are made from different sources of income.
After making money, many entrepreneurs invest their money in stocks, real estate, or even startups. That is, they do not get rich just with what they earn in their business. The trick is to have multiple sources of money.
Entrepreneurship is not always pleasant. In fact, it can be miserable. Not only will your first business not make you rich, it can even leave you broke. However, if you have a good idea and the will to keep growing and adapting to circumstances, you will eventually find your way to wealth.
Your idea may not make you a billionaire, but it can give you a very good life and the satisfaction of being a creator and a leader.
Source: www.entrepreneur.com
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