5 Reasons Most Millionaires Are Business Owners
Written by
Kerra Bolton
Edited by
Chris Cluff
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Did you know that 88% of all millionaires are business owners?
“You likely won’t get wealthy putting money into a savings account or buying index funds,” said Tim Denning, a personal development and entrepreneurship author. “This is the life you’re sold so you never get wealthy. Everyone should start a business at least once in life.”
Here are five reasons many business owners are millionaires.
They Didn’t Quit Their Day Jobs
It’s tempting to want to make the grand exit once you’ve started your business. But this can be one of the worst mistakes you can make. Within months, you’ll run through your savings and become desperate, leading to you spending more money on courses and coaches that promise to teach you how to make money.
They Built Their Businesses on the Side
Building your business on the side allows you to take small, calculated risks that can add up to big wins. When you have a guaranteed income, you aren’t susceptible to being desperate. You can take your time and test which business ideas work, and which don’t.
They Understood That the Best Ideas Are Boring
Many potential business owners believe they must have a grand idea to be successful. However, Denning said the best ideas are boring.
“The great ideas have already been done before,” Denning said. “The difference is good business owners just steal existing good ideas and do them better.”
They Socialize With Like-Minded People
There are plenty of people who will tell you all the reasons why your business won’t work. Maybe you’re even one of them. Socialize with other business owners at local and virtual events. It’s a great way to meet people, find collaborators, and solve problems.
“Get around people who help you get out of your head, so you don’t become brain dead with toxic ideas and thoughts of competitors stealing your customers,” Denning said.
They Built Online Communities
Many business owners are so busy trying to find their market instead of building an online community of potential clients, Denning said.
“Once you have an audience and you have an audience you can do anything, including build a business,” he explained. “They spend so much time figuring out products, doing strategy, recruiting people, designing logos…instead of doing the hardest thing of all: finding people who care and have money.”
They Auditioned Their Ideas
The average human has 60,000 thoughts a day. The best way to audition your business ideas is to execute them. You can agonize over your brand colors, or you can test a product or service in the market to see whether it has value. The data you get from small experiments will give you data you can build on.
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