The Risks Associated With NOT Starting Your Own Business

By Dr Daleen Smal | Online Business

Jan 08
Start your own business

Are you on the fence about starting your own business? Are you perhaps happy earning a salary?

Here are the pros and cons you need to know about, and the risks associated with starting a business. Also, the risks associated with NOT starting a business.

1. Is This A Good Investment Opportunity?

Start your own business

Evaluate the following investment opportunity:

The investment requires almost all your time. If all goes well, you may earn a return equal to the inflation rate, maybe 1% or 2% above inflation. The risk you take is that you may lose that in a single day for reasons that you have no control over. In this investment, there is a cap on the upside, but the downside is unlimited.

This does not sound like a good investment deal, does it?

Well, would you be surprised to learn that millions do this every day when they go to work for someone else? 

As an employee, you may lose your job and income at any moment, without warning and without being at fault, and on the other hand, you only receive increases equal to or just above the inflation rate, year after year.


  • Having a job may be risky.
  • With a salary, you are capped on the upside.
  • The downside is unlimited as you may lose your job and income.

2. Survey Results From The IRS

Start your own business

Evaluate the following investment opportunity:

In an Internal Revenue Service (IRS) report of January 2015 about ‘The 400 Individual Income Tax Returns Reporting the Largest Adjusted Gross Incomes Each Year for the years 1992-2012’, the income statistics show that the income of people on the list average $335.7 million in 2012.

When analyzing the numbers, it becomes evident that the income of the 400 highest earners in the United States in 2012 came from the following sources:

  • Salaries    7.52 %
  • Interest    4.38 %
  • Dividends    16.17 %
  • Partnerships and corporations    13.71 %
  • Capital gains    56.85 %

About 7.5% of the Top 400 earners received salaries, 4.4% received interest, 16.2% dividends, 13.7% received income from partnerships and corporations, and 56.9% through capital gains.

This breakdown shows that huge wealth does not come from employment by earning a salary, low-risk income investments such as bonds receiving interest, or investments in shares on the stock exchange that pay dividends only.

Yes, there is no question you may earn a comfortable living doing this – about 30% of the top 400 income earners did.

The results show that having a business, i.e. sharing in profits and capital gains, is where the big financial gains and wealth come from for roughly 70% of the top 400 income earners.

It is also true that wealthy people invest their profits from business ventures also in stocks and bonds and other investment vehicles to create more passive income.


  • The minority of Top 400 Income Earners receives salaries.
  • The bulk of Top 400 Income Earners have a business.
  • A large part use their income to create passive income.

3. You Become Wealthy By Using Leverage

Start your own business

It is evident that becoming really wealthy comes from investing in your business education and in leveraging.

First of all, you leverage yourself and what you have in terms of knowledge, skills, money, and time.

Secondly, you leverage the knowledge, skills, money, and time of others by building teams, systems – and by taking risks.

Perhaps you are already a professional person and would prefer to invest in your own business. Maybe you just do not want to work for a boss anymore and want to start your own business. It is also possible that you simply want to increase your wealth by playing the game more intensely by starting your own business.


  • Leverage your own knowledge, skills, money and time fully.
  • Start to leverage the knowledge, skills, money and time of others by building teams and systems.

4. Additional Benefits Of Being An Entrepreneur

Start your own business

There are more benefits to being an entrepreneur than only financial gains, provided you do it correctly. Most entrepreneurs that I have come to know feel wealthy not only financially but also emotionally. They have found their purpose and are living their dream.

They have found the secret of being a co-creator. They sparkle with excitement when they talk about what they do. They are enthusiastic when discussing their challenges, their purpose and fulfillment, and the thrill of their everyday lives.

Just as for employees, the downside for entrepreneurs can be unlimited. You may go bankrupt if you do it wrong. The crucial difference is that the upside can be unlimited both financially and emotionally IF you do it correctly.


  • Entrepreneurs doing it the right way sparkle with excitement.
  • The downside can be unlimited as you may go bankrupt if you do it wrong.
  • The upside is unlimited both financially and emotionally.


There is no reason why this cannot be your life. You can start your own online business. It does not need to be big. It can be your hobby that you are stepping up on but doing part-time. It can be bigger.

For those who know me already know my philosophy: nothing is limiting you apart from you. Find out what your passion and interests are and start planning and taking action to live your dream.

Take a chance and back yourself. Live life on your terms, experience the feeling of true empowerment and control your own destiny. The best way to forecast your future is by creating your future.

If you found this content helpful and know of someone else who may benefit from this, please help me change the lives of as many people as possible by sharing this post. Together we can make a difference.