Most businesses fail. Now I know why. When you factor out financial stupidity (“derp derp, let us spend more than what we make”), there is another answer.
In terms of being an employee, your income represents a desired skill. A highly desirable skill represents a much higher income.
You want to master that skill first, become very productive with it, and then split it off into its own company.
What people do incorrectly is say, “I work at retail store. So I made a business making youtube videos.” That is not going to work. “I work as a waiter. I made a business making a mini-brewery. Buy my beer!” That is not going to work either.
High income skills leverage into successful businesses. What are some high income skills? There are technical skills. There are sales skills. There are even marketing skills. The point is, you want to hone those skills first and then spearhead it into a business. You don’t found a business without having those in demand skills. Anyone can do it which means there are TONS of those type of businesses. There are tons of mini-breweries and youtube channels out there.
Many people want to go this route because they read Kiyosaki books. But what they do no realize is that Kiyosaki developed a HIGH INCOME SKILL at Xerox of being the top salesman. He could take that salesman skills and leverage them to make a company.
Peak productivity in this skill is required in order to hire employees. How are you going to help your employees out with problems when they arise? How are you going to help raise the productivity of your employees if YOU do not have peak productivity yourself?
My Old Man Advice to those who want to make their own businesses and all is to first go out and get a High Income Skill. If you cannot grind to get a High Income Skill, a business is going to be too much for you anyway.
There is a great comment on this video which says: “What was Steve doing at Atari?” Most people STILL don’t know that Steve Jobs was an employee at Atari. Steve Jobs was a technician at Atari. Steve Wozniak, his friend, was also a technician but at HP.
The point is that Steve Jobs obtained a high income skill at Atari… particularly in shrinking electronics.
What does Apple do today? People focus on the flash, but not the fire. Even today, Apple is shrinking electronics. Steve Jobs needed that skill in order to make Apple.