Last Friday, our Epic Shiz of the week was about a “punch in the face” article by Sam, The Financial Samurai at Untemplater titled Quit Your Job And Die Alone. In this very well written article, Sam outlines the entire BS about the people who tell you to quit your job to pursue your dreams. He outlines 4 examples:
I like Sam’s writing skill and there are a lot of things that he wrote that were true and was fair about quitting your job to become self-employed or to create a business. However, I think he purposely picked an angle from which to see this problem and hit it hard with his hammer. I have a feeling that he *forgot* a few details in his article. I’ve already posted a lengthy replied in his thread and feel that I have a lot more to say about it. This is why I wanted to write about my perception of the BS and the truth around quitting your job to create your own business.
Truth: Money doesn’t come easy
Well… the funny thing about this statement is that it has nothing to do with being your own boss or not. Money doesn’t come easy: PERIOD! I rarely see employees make 6 figures while chilling like a villain on the beach… oh wait, I’ve seen entrepreneurs do this… But when you start your business, regardless of your field, money won’t come easy. It requires a lot of work and patience. I keep saying on my blog that I’ve made 125K with my online company but I also explain in the very same post that I went from 18K to end at 125K!
BS: Money doesn’t come easy
I just told you that I’ve seen entrepreneurs chillin’ on the beach right? I guess this is one of the biggest differences between an employee and an entrepreneur: if you work hard and succeed, the employee will always have to come to work on Monday morning. The entrepreneur doesn’t always have to come in. Some say that the entrepreneur has to work like a donkey to get there…. Well not necessarily! After all, I can manage my 6 figure online business in less than 10 hours a week! This is called productivity. So while money doesn’t come easy at first, I can tell you that if you have the right setup, money will come easy. I actually work less than I ever have and my business is still growing. Why? Because I run my business as an entrepreneur and not as an employee. On the other side, I’m very successful with my day job too. But my bonus meter hits the big fat ZERO each year. I still have to come in each Monday morning if I want to see the money rolling.
The truth about being self-employed vs being an entrepreneur
This is exactly where I want to go: some people will quit their job and work as self-employed folk. They will do freelance work and will have to work hard every single day of the year. This situation is pretty similar to being an employee. In fact, it’s the same thing besides the fact that you don’t have a boss and have some more flexibility. However, you work the same number of hours and if you don’t work, you don’t see any money. Being an entrepreneur is being able to setup a money making machine. I don’t care if I have to spend 35K in VAs as long as I don’t have to work hard :-D. The funniest part is that I never ended-up paying the 35K in VA’s since my main VA went on maternity leave 7 months after we hired her. Therefore, we didn’t grow as fast as expected, but we “saved” a few thousand ;-).
The BS about people who can’t make it and bash others for their incompetency
I was surprised to see this point in Sam’s post: basically, he says that people bash employees is because they couldn’t make a great career in a big corporation. I was surprised because so many times I’ve heard the opposite (that people who bash entrepreneurship are the ones who couldn’t make it). In the end, I don’t think it’s the case for either. And for the record, I don’t really bash employees; I’m one myself anyways so would be pretty stupid to do so! There are some great employees who could become great entrepreneurs but never will and some great entrepreneurs who could have become great employees too! It’s not a matter of competencies or failure/success, it’s a matter of choice in your life.
The truth about my own company
Since I publish my monthly income report, you can tell that I’m focusing on gross income way more than anything else. I rarely breakdown my expenses because they don’t really matter to me. Why?
– Because I’m making more than I spend
– Because I’m growing my business month after month
– Because I don’t need this money right now
– Because I value my lifestyle more than working and therefore need to pay people to work for me
– Because I’m not spending, I’m investing
There is a huge difference between spending and investing and while I have the feeling I’ve written this before on this blog, I need to do it again. If I really need 60K or 70K to run my business as is, then, I’m in big trouble. But I spend this money to grow and not to maintain. This means that if I stop my aggressive growth plan, I can stop my extravagant spending too! This year, I want to go from 10K to 15K/month the very same way I went from 6K to 10K/month in 2011. But this, my friend, can’t be achieved without some serious investment. Growth doesn’t happen over time just as your next raise in salary won’t happen over time either.
What’s the most amazing thing about having a business?
Yes, you can pursue your dreams.
Yes, you can do what you do.
Yes, you can be your own boss.
Yes, you can work offshore.
But that’s all “marketing BS” compared to the real reason why a business is so awesome. The truth about running your own business is that you can scale it. I’m being very successful at my day job (here’s the chronology of my income) but there is one thing that frustrates me: I can’t scale my job. Whatever I do this year, no matter how amazing I am, my bonus will always reset to a big fat 0 at the start of the year. A big fat 0. How much can you scale at work: NONE! On the other hand, I’ve scaled so much with my online company that I barely work and still manage to make the equivalent of $45/hour NET OF TAXES. There is one thing I know: this number is going to grow year after year while my base salary won’t be able to follow the same hype. You can’t expect 20% growth in your salary for the next 10 years but you can definitely expect it from your business!
So what’s hip and what’s not?
Honestly, I don’t care about trends. I’m actually the kind of guy who goes against the trend just to not be a follower 😉 (I know… I still have a few teenager anger inside of me I guess!).
I don’t have anything to sell you (well I do but it has never been the pillar of my income in my plan anyways!).
And I still tell you: if you can quit your job and create your own business: DO IT!
I guess Sam’s article would have been different if he would added 4 more examples:
JD Roth who sold GetRichSlowly for probably over 1M$
Pat from Smart Passive Income who definitely live a healthy and wealthy life
Crystal from Budgeting in the Fun Stuff who makes a killing since she quit her job (she beat me income wise within a few months!)
Trent from The Simple Dollar who sold his blog not so long ago for a healthy profit too
As I written at the beginning of my article; it’s only a matter of taking a different angle!
If you live in another world and make $250K+ per year, this is not your article, not your blog and not your world. I totally understand you won’t quit your day job, but hey! You are part of the minority! While I make a smaller income, I haven’t quit yet for the very same reason: the money is too easy and too good to quit.
But if I lose my job, ask me if I’ll look for another one… 😉
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