Published on February 13th, 2018 | by Jose Vasquez0
Unlimited Income as a Startup Tech Company Entrepreneur: Myths and Realities
You may have heard entrepreneurship has unlimited income potential, but how true is that?
You’ve probably heard it touted that when you become an entrepreneur, you open the door to unlimited income potential; in other words, you can make literally as much money as you want. But just how true is that expression?
The Early Years
No matter what, the first few months and years of your business are going to be tight. You won’t have much revenue rolling in and your expenses will be enormous. If you’re basing your pay on profit, you won’t make much personal income at all, and if you’re paying yourself a salary, you’ll probably have to pay yourself less than your market worth. Unless you get incredibly lucky, there’s no way to “get rich” your first few years.
Profitability and Scale
Your income will eventually start depending on two factors: the profitability of your company and your ability to scale. Profitability depends on how much revenue you’re able to generate compared to how you manage your expenses. If you aren’t selling enough, if you aren’t charging enough, or if you can’t get costs under control, your income will be stifled. Assuming you can master profitability, the next step is scaling—expanding the company and keeping those profit margins stable so you can reap an even bigger profit.
The Distant Future
As you start expanding, you should start refining your process. Eventually, you can start adopting a hands-off approach. At this point, your enterprise should be generating profits for you on a recurring basis, with only as much input as you’re willing to give. If you make it to this point, your income is truly unlimited.
The problem is, there are many possible complications that could hurt you along the way, including:
- Slim profit margins.
- Excessive competition.
- Lack or loss of market interest.
- Growing pains.
So is it true that entrepreneurs have unlimited income potential? Yes, but the key word here is “potential.” It takes a great idea, a lot of work, and even then, there’s no guarantee you’ll get the money you want. If you want help along the way, contact me—we’ll put together a business plan you can use to find success.