Sunday, June 14, 2009

What is the easiest way to become a millionaire?

Start your own business.

Have you ever wondered who owns all those big houses when you drive around town? How can there be so many people making that much money? What could all they possibly do for a living? Interestingly, the two most common answers are that they either are senior executives for large corporations or that they somehow inherited the money. The reality is that these two sub-groups actually comprise a very small fraction of the total.

Actually, most of these people are entrepreneurs. These are people that start, operate, grow, and/or sell their own businesses. Their businesses range from having a few dry cleaning stores or franchised restaurants, all the way to having software and/or multi-national manufacturing companyies. A lot of them make good regular income, others make their money when they sell their businesses.

It will take you 20-30 years to become a millionaire as an employee of a large corporation - assuming you are lucky enough and know how to play the corporate politics game. Most successful entrepreneurs become millionaires in around 5-10 years - with higher chances of getting there. Especially in the US, where hard work strongly correlates to success.

Unfortunately, not everybody has the right personality to become an entrepreneur. It requires risk taking, perseverance, hard work and a little bit of luck. You probably have heard that 80% of all new usinesses fail in the first 5 years. However, of the 20% that make it, 80% are businesses in industries that the entrepreneur has a lot of experience in.

So, a good approach is to learn an industry as an employee and then start a company that does things better, cheaper, and/or faster in the same field.

Everybody should try to be an entrepreneur at least once.....the experience is priceless.

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