Business is not a guarantee of riches

Peter J.

A: Pete, I'm full of free advise, and here's yours: don't quit your day job.

No offense, my lively friend, but thinking about launching a business with no experience or money is akin to playing football without a playbook or pads. Better-equipped players will pound your various body parts into the ground, causing you to lose the game. 

Let us now address your second issue about wealthy persons who become so through their business ventures. Anyone who believes that entering into business is the path to riches should hear the story of the youngster who asked the wealthy old man how he made his money.

The old millionaire fingered his Rolex watch and replied, "Well, son, it was 1932, the depths of the Great Depression. I was down to my final nickel. I invested that nickel in an apple. I spent the entire day cleaning the apple, then sold it for 10 cents.

"I bought two apples with the ten cents the following morning.I polished them all day long before selling them for 20 cents. I used this strategy for a number of years before creating a successful apple business.."

"And that's how you got rich?" the child inquired. "In your own apple business?"

"Oh, heavens, no!" the old man said. "I lost my shirt in the apple business, but a few years later my wife's father died and left us ten million dollars..."

The moral of the story, Pete, is that you'd be better off finding a charming girl with a sickly, wealthy father than attempting to build a successful business. Of course, finding a nice lady with a sickly, wealthy father is easier said than done (believe me on this), but there is always hope.

That is not to imply that you cannot make a lot of money in your own firm or become so wealthy that starry-eyed children want you to tell them stories about how you made your fortunes. But most people who start a business do not become wealthy. To the contrary, most make so little money that they decide that starting a business isn't such a good idea after all, and then go screaming back to the security of the job they couldn't wait to quit.

While it is true that more millionaires became millionaires through their own company ventures than any other means, assuming that starting your own firm will put you on the path to wealth is foolish.

Many entrepreneurs develop successful enterprises that allow them to live comfortably, while many others become wealthy. Others just realize they have swapped one profession for another, and still others learn that business is not for them.

What factors should you examine before beginning a business? Asking yourself the following questions can help you make an informed decision.

Do you have what it takes to become an entrepreneur?

This is the first question you should ask yourself, because the grass on the other side of the entrepreneurial fence is not always greener (despite all the entremanure).