[USER]

I keep seeing a lot of “start a business” as a form of building wealth. My question is: what business exactly? Every market seems to be extremely saturated with everyone trying to start a business.

And the markets that aren’t like that aren’t exploding.

Not asking for a specific business advice, moreso an understanding of why that’s the go-to advice when someone comes into any form of capital.

I would think its harder and riskier than investing in a low-cost index fund where there’s more of a guarantee (although nothing is a guarantee when it comes to money)

Thanks!

[Farre]

I’d recommend getting equity in a venture firm. A lot of the ones that build companies grant equity in exchange for work on new companies (generally lower salary but good 3-5% equity options).

A single business might fail, but it’s hard for all 10 to fail.

[Amber]

We are retired and started a successful pet sitting biz for our kids. We also write books and sell on Amazon.

The goal (for us) is get rich slowly and build FAMILY wealth.

Read “Family Fortunes” by Bonner for more info.

[Grant]

Biz owner here and yes, you need to start a home based biz if you really want to beat the tax “system.” What to pick?

Something you are passionate about (that way you will keep doing it when the times are tough).

Also, don’t quit you day job…..

[Jennifer]

I started a cleaning business, but mostly to be flexible around my kids’ schedules. I think a lot of people like that they can set their own schedules.

There are a lot of cleaners, but there’s also a lot of demand.

Start up costs are relatively minimal, and the work isn’t complicated, just labor intensive.

I like that aspect because it keeps me moving.

I have heard that buying an already established business is a better bet than starting your own, but I didn’t have that kind of cash.

[Ian]

Owning your own business means you have direct control over its success. You might have to do work, but you can make it successful if you are willing to do the hard work.

Investing in stocks means you are handing that control over to someone else and hoping they manage their business well enough for you to get a little bit of the excess.

This concept is the best reason I have heard for investing in real estate.

Owning real estate offers a good mix of “passive” income/investment, plus the control or ability to control the direction and outcome.

The owner decides if they want to remodel the kitchen and increase the rent, or do a 1031 exchange to a new property. It’s flexible.

[David]

What sort of general or specialized skills do you have to build a business around?

Are you going to be a one-person show or are you going to hire and manage other people?

[Daniel]

You can if successful earn more money from a business than you would from a job. And you can then invest the profit in a low risk index fund.

That’s what I do.

It “helps” that my personality makes me resistant to the corporate world.

[Author]

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