Having your own business can be an intense experience: the excitement of creating a business that would not be there without you, forming a great team (and being let down from time to time), striving for success (and the fear of failure), making a good living (or being the last to be paid), having a sneaky Friday off (and working at weekends). It’s not for everyone but for those that dare it can be one of the most personally rewarding experiences.
Business owners can make themselves wealthy, and here are some of the secrets about how this can be done:
- The owner should get paid for their services, if they work in the business, and then they are also entitled to the profits from the business. It can be like being paid twice.
- Businesses are bought and sold all the time. If your business is growing then the value of your business, when you ultimately sell it, is probably increasing – quietly year in year out. It’s like being paid for a third time.
- If you generate profits as in 1) above, you can invest your money in assets that give you more income. It can be like being paid for a fourth time.
If you are being paid four times then it is not difficult to understand that your wealth might simply rise like dough, especially when you find out that the tax treatment on selling businesses and investment can be very favourable. Having your own business is not for everyone, but personally I wouldn’t swap it for a job. I would be interested in talking to you about your business.