Top Startup Misconceptions: Overnight Riches

In my effort to always provide a steady stream of useful information to entrepreneurs and aspiring entrepreneurs, I post tons of interesting and helpful articles that I find around the web that I think can help answer questions for my followers and help you all move your businesses forward. Oftentimes, people write me asking to elaborate on those articles or pieces of those articles so I am starting a series that will do just that. I may combine a few or leave a few out here and there, but I will cover the topics that people most often asked me to elaborate on.

I recently posted an article from RockthePost about common misconceptions people have about launching a new company. The next of those misconceptions that I want to tackle here is the idea that embarking on entrepreneurship will make you rich overnight…or will ever make you super wealthy.

Entrepreneurship is the hot thing right now and people have a number of different reasons for getting involved but the big 3 are necessity, passion, and a desire to be rich. Today I want to address the last of those 3 because there are a number of misconceptions out there about what the lifestyle of an entrepreneur is like.

Now, I’m not going to tell you that nobody should ever chase the money and that if you just follow your passion the money will come. That’s bull. But it’s also bull that just hanging out your own shingle because you want to be able to rake in cash is going to lead to financial success.

Building a business takes a lot of work and dedication. Yes, there are some entrepreneurs that just get lucky with a super simple idea and become overnight millionaires or even billionaires. However, you really don’t want to put all of your eggs in that one basket because those entrepreneurs are the exceptions, not the rule. If your son gets cut from his junior high basketball team is your response going to be, “Don’t worry son, Michael Jordan got cut from his basketball team too but then he want on to be one of the biggest stars in NBA history so you should forget about your education and just keep playing and you’ll grow up to be a millionaire basketball star,”? No, of course not. That would be insane and would be terrible advice that would probably cause some damage.

Entrepreneurship is no different. Yes, there are people that stumble into success but there are many, many more that lose everything chasing the dream without doing some proper research, planning, and strategy development. That’s why it’s so important to take the steps you need to create an actionable plan for launching and growing your business: if you don’t, you might find yourself high and dry and out of money before your business is turning enough of a profit to support you.

Here are the real facts:

  • The vast majority of new businesses fail within 5 years
  • Even those that don’t fail are mostly small businesses that will stay small and can support the entrepreneur but do not allow him or her to live in the lap of luxury
  • Even those that do become majorly profitable take many years to get there and you may not be able to cash out for even longer still

So, if you’re looking for a quick way to make a bunch of money, becoming an entrepreneur may not turn out to be all you dreamed of. Be sure to complete the proper planning in advance so that before you jump into entrepreneurship, you’re prepared for the journey.

If you need help getting started, be sure to poke around and explore the resources available to you on this site and give me a shout if you need personalized assistance.

 

Now I want to hear from you: What do you think of the idea that entrepreneurship is often viewed as a ticket to overnight success? Do you think that idea is becoming more or less prevalent as entrepreneurship enjoys its moment in the spotlight right now? What’s been your experience with building your business – are you the rule and took lots of hard work or are you the exception and you traded in your hoopty for a sweet ride a week after you launched your company. Let us know your story in the comments section below. 

If you found this video helpful or fun, please like it, share it on social media, and email it around to anyone else who may get something out of it. 

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