Business Owners Make a Lot of Money
If you are a small business owner already, this one doesn’t need much of an explanation. Many wannabe entrepreneurs fantasize about leaving the confines of working for someone else. They think starting their own company will make them wealthier than being an employee. In some cases it is true, but on the whole, it is not.
According to the National Federation of Independent Business (NFIB), the average business owner makes between $40,000 and $50,000 per year. That’s not terrible—it pays the bills—but a lot of skilled people could make that amount or more working for someone else with a lot less risk and fewer hours.
For a growing small company, however, the rewards can in-deed be great. Among the Inc. 500 class of 2003, 78 percent re-ported a net worth of over $1 million. Nearly half were multimillionaires. One in five was worth more than $7.5 mil-lion. Keep in mind that these are the elite, however. The median five-year growth rate of these 500 companies was a whopping 692 percent.
