5 Things I Wish I Knew Before Starting a Business

So you want to start a business, make a ton of money, and be your own boss, huh?

I can understand that. Working for someone else and building their goals and business can be frustrating. Plus, being an employee isn’t always fun. Especially when the cost of goods continues to rise, and the pay is trash.

But is starting your own business and becoming an entrepreneur the solution?

This question has no black-and-white answer, but it deserves further examination.

According to these stats, 88% of millionaires are entrepreneurs. And, considering that we live in the social media age where entrepreneurs are documenting and counting their cash on their private jets that they pulled up to in their luxury cars, the appeal is at an all-time high. They tell everyone watching to “Start a business! Become an entrepreneur!” if you want to live like they do.

Hell, sometimes I’m one of those guys!

But here’s the reality: Anyone can start a business and become an “entrepreneur,” but that doesn’t mean they should, and that doesn’t mean they’ll be successful.

Considering that I’ve built multiple eight-figure businesses and made millions upon millions, I think I have some valuable input on this topic.

Let’s talk about what I wish I knew before getting into business–things you should know before starting–and see if it’s the right move for you.

1. Being An Entrepreneur Is A Bit Overrated 

Let me clarify something first: I’m an entrepreneur and a business owner. I enjoy it and what I do.

However, being an entrepreneur is a little bit…overrated.

Let me explain:

When you start a business wanting to make a ton of money, the business will eventually grow. And when it does, you’ll need to hire employees.

Don’t get me wrong, employees are great. But it’s like having a bunch of children. So when an employee has an issue or a problem, it’s not just their problem. It’s your problem, too. You’ve got to deal with that.

People get sick. Emergencies take place. They may die, or someone in their family dies.

Every one of their problems becomes your problem.

And if you can’t handle that pressure of constantly putting out fires, running a business may not be for you.

But you may have what it takes if you have the right temperament and are cool with constant pressure.

2. It Costs to Be the Boss

We’ve all heard the saying, “The customer is always right.”

That’s a load of crap. It’s not true. Sometimes, the customer is dumb as hell and straight-up wrong.

However, if the customers start whining, crying, or complaining about your product or service, that’s also your problem. Your employees can go home and forget about it. But you, as the business owner, always need to think about the customers' wants and needs. Otherwise, it’ll hurt your bottom line.

The last thing you need is for people to start slamming your business reputation. Especially online.

Also, as the boss, you have all the overhead. Meaning you have to pay for everything, all of the expenses.

You think that the money is just going to come to you. But really, you’re going to have to put that money out! And a lot of it goes out! You have to pay to play!

It costs to be the boss.

Early on in my entrepreneurial journey, there were years when I wasn’t as smart or as good with money as I am now. And I had to pay for everything. The overhead, the expenses, the employees, and I didn’t (and couldn’t) pay myself!

You can’t not pay your employees! They still need to eat.

Do you know what it’s like to have a business where you work harder than everyone and have to pay them, but you can’t pay yourself?

I wish someone told me that was a possibility.

I’m telling you now, so tread carefully.

3. The Risk

I don’t want it to seem like being an entrepreneur and running a business is awful. It’s not.

The potential to make money is higher, but so is the risk, and you need to know of the risk before making this decision.

Data from the BLS shows that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first ten years.

Only 25% of new businesses make it to 15 years or more. That means 75% of companies will fail.

That’s a big risk! And it’s your risk. The employees can get another job.

Would you buy a car with a 75% chance of exploding on the road?

Would you buy any product that had a 75% failure rate? Probably not.

But that is entrepreneurship — a 75% failure rate.

As the saying goes, “No risk, no reward.” That’s true, but you must know the odds before you place any bets.

4. Entrepreneurship Is NOT the Only Way to Build Wealth

Do you know what industry has created the most millionaires?

It’s not technology. It’s not real estate or construction.

It’s financial services.

And you can build your wealth by having a job in one of those institutions. A sales job in one of those established businesses will make you rich.

I’ll use an example from my own business.

Take my top sales guy and sales manager, Brian. Brian works for me. He has no employees. This dude has a job and just works. It’s not his business, so he takes none of the risks of having one.

Last year, I paid Brian about $300,000 in commission. No risk. No employees.

And he still has his side hustles and has invested his money for years. And he’s the cheapest person I’ve met in life (he knows I say it as a compliment).

He’s making $300,000/year, and the cost of living is next to nothing, allowing him to stack his money in investments to keep growing his wealth. He put 80%-90% of his money into investments and has now made more money from his investments than he did from his job.

Now, it’s a high-paying job at an excellent company with a fantastic boss, but if you can get something like that with fewer headaches and risks than starting your own business, that might be your path.

The owner–me–has to worry about the sales, the marketing, the fulfillment, the employees, etc. You have to worry about all parts of the business.

Brian just has to worry about his part of the business.

5. Focus On One Industry or Product

We often hear from the financial world that millionaires have at least seven different income streams. And so many beginners take that to heart and think they need to diversify from day one.

I believed that, too, when I first got into business. But I learned the hard way that that advice is foolish.

When I had my supplement company, I was on the verge of building two other businesses simultaneously: A keto-based food delivery service and an online training mentorship.

A mentor of mine taught me that I was splitting my focus and time. Split focus leads to split results and wasted time that I’ll never get back.

So I shut down the supplement company and the food service and went all in on one business: The online mentorship.

Doing so allowed me to put all my energy, effort, and time in one direction. I wasn’t spinning as many plates. And lo and behold, my mentor was right. I made more money than I had ever made by not splitting my focus.

The rich, indeed, have multiple sources of income. But that’s only after they focused on one product or business for a substantial amount of time and made their millions. Then—and only then—they diversify.

When starting your entrepreneurship journey, focus on one business and one business only.

This simple yet powerful tactic will allow you to amplify your focus, making it so laser-like that you can penetrate any obstacle and hit your target.

The BMM Takeaway

Listen, being an entrepreneur is fantastic.

It’s changed my life in so many ways. I’ve made millions and helped others make millions, and we continue to grow and help change people’s lives.

However, it’s not for everyone.

Not everyone has risk tolerance, and I don’t want to understate the importance of it.

The leader does all the hard work, making it easier for everyone to follow behind. If you don’t have that temperament, don’t start a business yet.

However, if you can’t help yourself, like you know what you want to do and what you want to build and you’re passionate about it, then you have to anticipate the hardships of entrepreneurship.

You must prepare for the struggle of building a business, maintaining it, and scaling the company. If you don’t, I guarantee you’ll fail and fall into the 75% of companies that go under.

If you correctly prepare and think deeply about what I wrote above, you may be the 25% that succeeds and flourishes.