Are you caught on the treadmill?
The vast majority of people go to work every day in the same routine and, ultimately, allow their lives to “emerge.” And when the life that emerges isn’t good enough, they wonder why.
That fact is, they’re caught on the treadmill of life.
Many believe the answer to the treadmill is to set up in business.
Well, it could be, but let’s look at how that pans out in 98% of cases.
Quite often people start businesses because they feel caught on the treadmill. They feel that starting a business can set them free of the treadmill.
Another reason people go into business is because they become tired of being good at something that makes money for somebody else.
But there are three problems that almost every business person faces when going into business – and those problems quite often persist throughout their business lives.
The first is that in most cases they’re already trapped on the treadmill when they go into business. And what that means is that, as soon as their business makes any money, they’re sucking it dry to keep themselves on the treadmill.
And because they suck the business dry, they deprive it of the capital it needs to grow.
The second problem is that if they weren’t on the treadmill when they started their business. But they quite often end up on it when they start to achieve a little success.
It is sadly the case that when most business people begin to achieve success they buy fast cars and big houses – usually, all on credit – and generally begin enjoying a much larger life than they did before.
To pay for it they have to draw more and more income from their company – and, of course, this results in them paying more and more tax. Pretty soon they end up in a downward spiral. Their lifestyle begins to consume all the profits of their business and they end up on the treadmill. And if the business starts to make a little more money, the business owner typically uses it to increase their lifestyle further.
As a result, far from being financially free, the business owner becomes a slave to the business. They end up with exactly the opposite outcome to the one they’d gone into business to achieve.
This leads neatly into the third problem.
The third problem is that in 98% of cases, the business that was supposed to set our budding entrepreneur free ends up trapping them even more. They find the business won’t work without them and that they have to be there all the time. They end up working harder than they did in employment and quite often for less reward. And in the background is all the risk they take on a daily basis in running a business.
In essence, they find they don’t really have a business – they simply have another job.
Does any of this sound familiar to you? If it’s a yes, you will want to download a copy of my book The Keys To The Safe.
Stay tuned! Because next time I’ll talk about the solutions to this problem!
Antony Holdsworth BSc (Hons) FCMA CGMA