Entrepreneurship

The word entrepreneur comes from a French word that means “to undertake.” In starting your own small business, you have undertaken the great American dream. In fact, polls by The Wall Street Journal and The Gallup Poll of 1.7 million people found that approximately 55% to 70% have the desire to own a business. Yet, only 11% actually are self-employed.

In his book, The Millionaire Mind, Thomas J. Stanley explains that most millionaires are not necessarily doctors, attorneys, or business executives, but people who own their businesses. Dr. Stanley defines a millionaire as an individual who has a net worth of over a million dollars. If a business cash flows $350,000 to $500,000 per year and the value of that business is two to four times cash flow, the business owner is considered a millionaire.

On the other hand, a business executive who earns $150,000 per year is not investing value in his position because he cannot sell that position to another person. So it’s relatively easy to see that business ownership is one of the greatest roads to creating wealth for you and your family. If you build a successful, profitable business there will always be a selection of buyers who would like to purchase your business.