For the self employed business owners on here....

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
BV3273
Posts: 720
Joined: Mon Oct 19, 2015 7:20 pm

For the self employed business owners on here....

Post by BV3273 »

I’ve been noticing in many studies and posts that I’ve read on this website that many millionaires are self employed business owners.

My questions are:

1. How did you get your start? Is it a family business?
2. Do you offer a product or service?
3. Did you start off part-time and then transition into full-time or did you go all in?
4. How long did it take you to start turning enough of a profit to support yourself/your family?

I look forward to reading the responses.
CFM300
Posts: 2031
Joined: Sat Oct 27, 2007 5:13 am

Re: For the self employed business owners on here....

Post by CFM300 »

1. I had an idea, developed a prototype, and then began marketing. Entirely DIY. Not a family business.
2. A fixed service that can be marketed like a product.
3. Began as a part-time side-gig, transitioned to full-time.
4. About five years, but could have been faster.
smitcat
Posts: 7319
Joined: Mon Nov 07, 2016 10:51 am

Re: For the self employed business owners on here....

Post by smitcat »

BV3273 wrote: Wed Oct 28, 2020 8:39 am I’ve been noticing in many studies and posts that I’ve read on this website that many millionaires are self employed business owners.

My questions are:

1. How did you get your start? Is it a family business?
2. Do you offer a product or service?
3. Did you start off part-time and then transition into full-time or did you go all in?
4. How long did it take you to start turning enough of a profit to support yourself/your family?

I look forward to reading the responses.
1. How did you get your start? Is it a family business?
We reviewed mutiple business's before we began - it was not a family business.
2. Do you offer a product or service?
At various times we did both, mostly service related
3. Did you start off part-time and then transition into full-time or did you go all in?
We did part time first.
4. How long did it take you to start turning enough of a profit to support yourself/your family?
About 4 months after one of us going full time.
Wanderingwheelz
Posts: 1026
Joined: Mon Mar 04, 2019 9:52 am

Re: For the self employed business owners on here....

Post by Wanderingwheelz »

My wife and I made our millions from two small retail stores in a cozy resort town. She’s in her 21st year and I just “retired” after 16 years with the store I ran.

My wife was young and single when she quit her first job out of college to borrow the money from a bank to launch her shop. We had just gotten married before we borrowed money to launch the second one after I’d quit my job as a higher earning financial advisor. She was 25 when she started and I was 33.

No family money was involved at all.
User avatar
Rob5TCP
Posts: 3546
Joined: Tue Jun 05, 2007 7:34 pm
Location: New York, NY

Re: For the self employed business owners on here....

Post by Rob5TCP »

My questions are:

1. How did you get your start? Is it a family business?
Passed on the family business (best decision I ever made)
After several failed businesses, I began working for a software vendor. I was in sales.
The sales were good, but the support was awful. I began doing the support myself after hours.
Eventually I left with most of the clients.

2. Do you offer a product or service?
Mostly service -- I also do software sales and customizations (which you could consider a product)
The bulk of my income is support and consulting.

3. Did you start off part-time and then transition into full-time or did you go all in?
No, I just pulled the plug and left my former employer (and 35k in unpaid commissions).

4. How long did it take you to start turning enough of a profit to support yourself/your family?
Within 6 months I was earning more than my prior position. Within a year it was 2x.
J295
Posts: 2847
Joined: Sun Jan 01, 2012 11:40 pm

Re: For the self employed business owners on here....

Post by J295 »

A partner in a professional firm for me, thus a self-employed part owner. First family member to go to college, and only one with a professional degree.

My dad did it by owning various businesses, some of which were successful and some weren’t. The most successful was a commercial real estate building that he purchased and held for nearly 40 years. Did it all on its own. High school education along with wisdom.

My nephew owns real estate brokerage and numerous rental properties. Did it all on his own. High school education with a great work ethic and people skills.
User avatar
ccf
Posts: 333
Joined: Mon Mar 09, 2015 9:13 pm

Re: For the self employed business owners on here....

Post by ccf »

1. How did you get your start? Is it a family business?
Started it as a for-fun project with my partner to fill a need that we personally wanted to see filled.
2. Do you offer a product or service?
Service (online)
3. Did you start off part-time and then transition into full-time or did you go all in?
Worked on it nights and weekends until it became clear that it just might work. Then full time.
4. How long did it take you to start turning enough of a profit to support yourself/your family?
It took about 1 year before cash flow wasn't a huge source of stress. 3 years to replace our previous incomes.


Some of the circumstances that led us to be successful:
  • I went to school for CS and graduated during the bubble so I was pretty much handed a good job
  • Working in tech made it easier to have an emergency fund so that we could give it a go full time, it also made it easy to quit my job because there are always more tech jobs
  • We could risk it all, knowing that we move in with our parents, get regular jobs again, and recover if we completely failed
  • Combined, we had the skills to do this completely on our own and had very few expenses. We didn't need any cash, just credit cards with introductory rates.
  • We started when we were younger, no kids, could easily work long days, and had very few responsibilities
  • There was no competition

I have mixed feelings about small business ownership. Work life balance is hard.
Topic Author
BV3273
Posts: 720
Joined: Mon Oct 19, 2015 7:20 pm

Re: For the self employed business owners on here....

Post by BV3273 »

Great responses so far! I’m personally trying to find a niche in a market so I can start putting together a business plans and get going.
kbjeffrey
Posts: 32
Joined: Fri Aug 07, 2020 4:55 pm

Re: For the self employed business owners on here....

Post by kbjeffrey »

1. How did you get your start? Is it a family business?
I was an Asst. Professor at a Computer Science Department when the Palm Pilot Launched. I was very excited about the actualization of ubiquitous computing and started teaching classes on Palm OS program. My first sabbatical leave came up and Palm hired me as a consultant to teach developers from corporations. I started up a company doing custom Palm OS programming and never looked back. (not a family business, not doing Palm OS anymore...)

2. Do you offer a product or service?
We offer services. Some are products (Software as a Service) and some is developing custom educational assessment systems that we then license to the client and support for them.

3. Did you start off part-time and then transition into full-time or did you go all in?
Started part-time and after a couple of years went all in.

4. How long did it take you to start turning enough of a profit to support yourself/your family?
It took about two years to start making enough money to be able to quit teaching.
Post Reply