Now that we have our self-managed ETF’s working for us, it’s time to dig down into owning your own business. Creating work, or a business to generate cashflow is the next focus of today’s letter. When I started my first business some 45 years ago, I was the only employee.  It was fun but also scary.  As things got busier, I needed help, and that is when things changed.  I became a business and not a self-employed person.  When unemployment hits, or when you realize you can’t work for anyone else, you really have two choices.  Start a business or become self-employed.  Here are the advantages and disadvantages of each.

Self-employment

Advantages

1. No employees.

2. Invest in yourself.

3. Control of service, product and quality is all in your hands.

4. Easier to start.  Find out what the market or community needs and provide it.

5. Less start-up capital.

Disadvantages

1. If you don’t work, there is no income.

2.  You are often capped on how much you can earn, as you are the only one working.

3. You have basically created your own job.  You are still working many hours a day, not on business.  Working in the business means you are making the pies, raking the leaves, helping the senior citizen directly.

4. Risk increases; should you become injured or unable to work, few safety nets exist.

5. Difficult to sell.  If it’s not a business, someone may provide a token amount to create a job, but if they are your clients or your customers, it can be difficult to transfer those to someone else.

Owning a Business

Advantages

1. You can grow the business for more income than you could earn working alone.

2. More support.  As the business grows, you can hire more people to take care of things you aren’t good at.

3. Building a business is building a real asset.  You can sell a business for much more than a self-employed job.

4. The business can function without you.  This is a primary advantage.  You don’t have to be there every day to keep earning and building.  There is no limit to how many businesses you can own if you master the ownership challenges.

Disadvantages

1. You must hire employees, fire them and deal with HR issues.

2. You need systems that are tight and monitored, or you lose quality control.

3. The skills you need to run a business are very different from those you need to work in the business.  Learning how to manage people, financial controls, financing, banking and dealing with investors.

4. Competition and envy.  You will learn very quickly who your friends are.  Many will become envious, and you will lose most of your friends as you achieve each level of business growth.  The more successful the business, the greater the risk of someone wanting to take you out.

5. The pressure and weight of owning a business are real.  You now have other families relying on your business through their employment with you.  That pressure is real to grow the business to ensure their employment.

I wish I had made this distinction between self-employment and owning a business when I got started.  It would have changed many things. Mainly saved a lot of time, money, and confusion. Either way is valid, and can be an amazing work life.  Just make sure you take a close look at what makes the most sense to you when deciding to start out on your own. Self-employment or owning a Business?

Subscriber-Only Land Banking Opportunity (30 Days)

One parcel within a development I own is currently listed publicly at $89,000. For newsletter subscribers only, I’m making a separate, limited financing structure available for long-term land banking. I will only do this once per year.

Public Listing Here Price: $89,000

Standard market terms

Subscriber-Only Structure

$35,000 down

$54,000 vendor-financed mortgage, no bank, no appraisal

10-year term at 2%

Monthly payment approx. $497

This structure is intended for patient capital and long-term holders, not short-term speculation.

The financing option is available only to subscribers and only for 30 days (Until February 21, 12:00 p.m. EST. I offer this at the 2% rate for 10 years, once a year. The first qualified buyer within the timeline with an accepted offer is given this opportunity. After 30 days, the listing remains public only under standard terms.

If you’re interested, follow the listing link and work with your realtor, or make an offer directly to the agent on the listing. Under conditions, make sure you include the terms above. Do NOT share this offer with anyone, please; this is for newsletter subscribers only.