S
stevon
- Original Poster
- #1
It's fair to say there are many entrepreneurs and business people on this forum; most of whom probably spend a disproportionate amount of time trying to become wealthy through their endeavors. I'm not saying that this is sole reason, or even the primary one, but I'd say that's a fairly accurate generalisation and one most posters can relate to...
But is it possible? Well, of course it is - we know of countless examples who have done just that. Despite this, we know most businesses fail within the first couple of years and the odds of launching and sustaining a financially prosperous business are considered slim. Furthermore, many businesses may survive or grow, but rarely fully prosper and build wealth.
I think if you look at much of the businesses on here and even within your local community, you'll find people working very hard, providing an excellent service - but whose business model is either fundamentally flawed because they work on such tight margins, or who can't break through a ceiling without taking unfathomable risk ("the bearer of uninsurable risk"?!) or jeopardising their livelihoods, risking bankruptcy, etc.
Now, this links in to my recent employment search. Having not avidly searched the job market in ~5 years, it's been quite an eye-opening experience looking at the positions that are available across the major job websites... So many part-time positions, commission-based roles and shelf stacking salaries for seemingly 'professional' roles. As well as this, an unbelievable amount of recruiters trying to entice people into paying for their own training, providing their own equipment or taking a fairly high risk in order to earn a crust. Don't get me wrong, there's still what I'd consider at this stage in my career as "real jobs", but it's been a real chore sifting through all this other stuff. Furthermore, salaries have all become one in a muchness - or at least that is how I'm perceiving it and it's what I'm hoping to get some discussion going on today!!
A £18,000 salary you're looking at £295 pw after Tax/NI.
£24,000... £375
£30,000... £450
£40,000... £580
So... £300-600 a week.
Now I'm basing this on a single, >60 individual. I think it would be fair to say that your 'average' person is unlikely to command a salary of over £40k, or accept a salary of too much less than £18k. Take into account kids, mortgage/rent, transport, yadda... Even at the top end of that scale, you'd be very lucky to be be making an individual net profit of a few hundred quid a week, probably far less. Even assuming a prudent lifestyle of an avid saver, it would take a lifetime and the magic of compound interest to build up any significant wealth.
From the perspective of the entrepreneur - is the outlook even this good? Many opportunities are locked to those with lump sums and margins on most products have restricted successful retailing to the multinationals... Of course there are service businesses, but again, these often have ceilings in terms of the capacity of the service provider.
I'm going to stop now, because I feel the tone going a little doom 'n' gloom! But here are my questions:
- Is it realistic to create sizable wealth through starting a business?
- Is it realistic to build wealth through working for somebody else?
- Is the standard of living in this country in line with the costs? I'm looking at the figures thinking so many people must spend such a sizable % of their income on what I'd consider to be basics.
- Aside from striking it lucky; what business models work for building wealth?
- Is building wealth a priority for you and your business?
- Are you happy with your quality of life? Do you see a clear path from where you are now to where you want to be?
I guess I have become a little disillusioned by current market conditions and I'm keen to hear what others make of this question! I know I haven't defined 'wealth'. I know I haven't addressed trades, specific professions and there's numerous flaws in this theory/argument/thoughts; I just wanted to open it up to the forum and hopefully get a bit of discussion going.
But is it possible? Well, of course it is - we know of countless examples who have done just that. Despite this, we know most businesses fail within the first couple of years and the odds of launching and sustaining a financially prosperous business are considered slim. Furthermore, many businesses may survive or grow, but rarely fully prosper and build wealth.
I think if you look at much of the businesses on here and even within your local community, you'll find people working very hard, providing an excellent service - but whose business model is either fundamentally flawed because they work on such tight margins, or who can't break through a ceiling without taking unfathomable risk ("the bearer of uninsurable risk"?!) or jeopardising their livelihoods, risking bankruptcy, etc.
Now, this links in to my recent employment search. Having not avidly searched the job market in ~5 years, it's been quite an eye-opening experience looking at the positions that are available across the major job websites... So many part-time positions, commission-based roles and shelf stacking salaries for seemingly 'professional' roles. As well as this, an unbelievable amount of recruiters trying to entice people into paying for their own training, providing their own equipment or taking a fairly high risk in order to earn a crust. Don't get me wrong, there's still what I'd consider at this stage in my career as "real jobs", but it's been a real chore sifting through all this other stuff. Furthermore, salaries have all become one in a muchness - or at least that is how I'm perceiving it and it's what I'm hoping to get some discussion going on today!!
A £18,000 salary you're looking at £295 pw after Tax/NI.
£24,000... £375
£30,000... £450
£40,000... £580
So... £300-600 a week.
Now I'm basing this on a single, >60 individual. I think it would be fair to say that your 'average' person is unlikely to command a salary of over £40k, or accept a salary of too much less than £18k. Take into account kids, mortgage/rent, transport, yadda... Even at the top end of that scale, you'd be very lucky to be be making an individual net profit of a few hundred quid a week, probably far less. Even assuming a prudent lifestyle of an avid saver, it would take a lifetime and the magic of compound interest to build up any significant wealth.
From the perspective of the entrepreneur - is the outlook even this good? Many opportunities are locked to those with lump sums and margins on most products have restricted successful retailing to the multinationals... Of course there are service businesses, but again, these often have ceilings in terms of the capacity of the service provider.
I'm going to stop now, because I feel the tone going a little doom 'n' gloom! But here are my questions:
- Is it realistic to create sizable wealth through starting a business?
- Is it realistic to build wealth through working for somebody else?
- Is the standard of living in this country in line with the costs? I'm looking at the figures thinking so many people must spend such a sizable % of their income on what I'd consider to be basics.
- Aside from striking it lucky; what business models work for building wealth?
- Is building wealth a priority for you and your business?
- Are you happy with your quality of life? Do you see a clear path from where you are now to where you want to be?
I guess I have become a little disillusioned by current market conditions and I'm keen to hear what others make of this question! I know I haven't defined 'wealth'. I know I haven't addressed trades, specific professions and there's numerous flaws in this theory/argument/thoughts; I just wanted to open it up to the forum and hopefully get a bit of discussion going.
