You’ve probably seen those quotes that float around on social media…
“I would rather work 16 hours for myself than 8 hours for someone else.”
“Entrepreneurs are willing to work 80 hours a week to avoid working 40 hours a week.” (credited to Lori Greiner – of Shark’s Tank)
“Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t.”
It’s true there are more millionaires out there who are self-made – who earned their millions from their own businesses, start-ups and ideas -- than there are who inherited their wealth.
That’s not to say you have to be an entrepreneur OR have family wealth to become a millionaire. There are more choices than that! And while there are certainly benefits to self-employment and entrepreneurship, it’s not for everyone.
And certainly not all entrepreneurs become millionaires. In fact, many don’t make it past the start-up phase. There are lots of statistics pointing to the number of business successes compared to business failures – you may be familiar with that 1:5 ratio, or the BDC statistic that states only 51% of new firms survive their fifth year of operation.
Entrepreneurship is not for the faint of heart.
So what does it take to succeed?
As host of the podcast I'm a Millionaire! So Now What? (listen & subscribe here), I get to speak with many entrepreneurs and business owners across all industries.
Most of these entrepreneurs agree: to succeed it takes grit, perseverance, and steadfast determination.
“…being an entrepreneur and starting a company is not for everybody. It’s very, very hard and it is a long road. You have to have a lot of resiliency; it’s a dark tunnel running a company. And also, if you do start a company, you know, if it’s not working out it’s okay to stop and it’s ok to ask for help. And it’s ok to just not go forward. Fail fast and move on.” - Michael Hyatt, I'm a Millionaire! So Now What? Entrepreneur in Residence, January 15, 2019 episode.
Overwhelmingly, these individuals have taken on risk to get started, risk to keep going, and the understanding that the future holds inherent risk too.
“…you don’t have a pension, you don’t have a retirement plan, so you really have to think ahead.” Serena Holmes, I'm a Millionaire! So Now What? Accidental Entrepreneur, January 29, 2019 episode.
Last week I introduced a financial option that allows incorporated business owners and entrepreneurs to lessen that risk of future security – the Individual Pension Plan (IPP).
An IPP is a registered pension plan designed for incorporated business owners generating a T4 income, giving them an opportunity to maximize their retirement funding and reduce their business taxable income. An IPP can:
- Diversify your retirement strategy
- Substantially increase retirement savings vs RSP
- Attain a planned capital accumulation at retirement
- Offer significant corporate tax deductions
- Provide deductible investment management fees
- Bring creditor proof
- Facilitate succession planning
- Facilitate the sale of your business
There ARE smart financial tools, like the IPP, that can ease the burden of risk taken on by business owners and entrepreneurs. And because I’m committed to double the number of Canadian millionaires by 2030, it’s important to me that I share the kind of information that supports millionaires, and millionaires-in-the-making.
That’s why I’ve invited Rachelle Murphy, Consultant with SAI Actuarial Services to talk about IPPs as the topic of my first of four 2019 Elevated Conversations with Colleen O’Connell-Campbell.
I created Elevated Conversations to bring together investors, entrepreneurs, business owners, and professionals alike in this era of significant innovation and disruption to our world, to discuss changes in the way we live and do business daily.
If you’re interested in attending “IPP, Supersized RRSP for the Incorporated Business Owner/Professional” with Rachelle Murphy here in Ottawa on Wednesday, March 27th, 2019, please apply online. Elevated Conversations are held over dinner from 5 pm to 7 pm at a fine establishment along Preston Street. More details will be provided once you’ve applied.
The bottom line is this: Risk, like beauty, is in the eye of the beholder. We make calculated risks every moment of every day – a decision one person considers risky another person makes without a second thought. It’s all about what you see as being “worth it”. As I mentioned, more millionaires are self-made than made from inheritance. So risk, grit, fast failures and determination may just be part of what comes with your dreams.