Lewis Howes discusses how 9-to-5 employees can build wealth through equity and ownership stakes, comparing the financial stability of employment to the risks entrepreneurs face.
I have a friend who's probably one of the richest guys I know and he has been an employee for like 30 years. He's dating celebrities, has a plan. You can actually become massively wealthy as an employee if you understand how to become so valuable that you get a piece of ownership or equity. Like there is nothing wrong with being an employee. It means that you do not carry all the risk.
He's not managing payroll. He's not having to hire and fire people.
Right. And 90% of startups fail. Most startups fail in the first three to four years. And in those first three to four years you make zero dollars. In fact, you spe on average 30 to $50,000 a year attempting to make money.
Oh man.
And then when you eventually do make money in year three or four, the average entrepreneur pays themselves anywhere from 40 to 60 thousand dollars a year in salary.
So you go five years making no money essentially.
Exactly.
Working more hours than his employee.
Right.
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