Why should you start a company rather than work 9 to 5

admin

I’ve started three companies, and I’d never go back to a 9-to-5 job. Why? The biggest difference between entrepreneurship and working a job is whether you’re using leverage. Once you understand the power of leverage, it’s incredibly hard to accept losing it. As the protagonist in the reality show Undercover Billionaire said: “Every minute spent working on a business is a minute taken away from building a business.”
You’ve probably heard people say that the word “entrepreneurship” is overused and watered down. Everyone seems to be “starting a business”—street vendors selling tacos, college students opening coffee shops, or someone on the subway asking you to scan a QR code for their “startup.” The problem is that the definition of entrepreneurship is too vague, leaving many confused. Is starting a company entrepreneurship? Is waking up at dawn to sell bagels entrepreneurship? What’s the difference? Here’s a definition to remember: If you’re not using leverage, it’s not entrepreneurship—it’s just a business.

When you work a job, your cost is your time and energy, and your income is your salary. Often, your salary is less than the value you create, because the business owner captures the surplus value. In the U.S., it’s common to work overtime without extra pay, meaning you’re essentially operating at negative leverage—your income-to-value ratio is likely less than 1. Even if you achieve great results and earn a bonus or commission, it only makes the company’s shareholders richer, while you get a small fraction of the value you created. Non-shareholder executives or high-earning professionals might benefit from leveraging employees’ work, so their income-to-value ratio is higher. But the scariest part? If you stop working, your income stops immediately because you’re trading your labor directly for wages. Years of hard work might leave you with nothing but a modest paycheck—no lasting wealth accumulation. Meanwhile, entrepreneurs who master leverage can generate passive income even when they’re not working.

admin

YEs, Once you’ve tasted the power of leverage then you can quit