Mike Andes breaks down why internet gurus' anti-9-5 messaging is misleading. He compares a five-year earnings graph of a salaried employee getting steady raises to a landscaping business owner who loses money for years before turning profit, showing most entrepreneurs need patience before outearning a paycheck.
Questions this video answers
$50,000
Negative $100,000 (put $100,000 into the business)
Negative $110,000 (lost another $10,000 in year 2)
$60,000 (employee received a $10,000 raise from $50,000 to $60,000)
$50,000 profit in year 3; cumulative total becomes negative $60,000
Chapters
Hey, everyone, it's Mike Andes, and you're listening to the Business Bootcamp podcast. Today I am going to be talking about why the 9 to 5 has been so demonized and in my opinion, is absolutely leading to people to get into business and start entrepreneurship and leading many people to having a lot of problems when they don't get their success as quickly as they thought. Before we get into the show, though, a big thank you to a sponsor, which is Gusto. If you haven't already, go to gusto.combootcamp, try their software completely free, where you can pay your employees. They have an app where they can see the breakdown of everything that's been taken out of their paycheck and, like, taxes and all the rest of it. Check it out. Today, go to gusto.combootcamp all right, so I'm going to be drawing this graph, and I am doing this after a weekend of talking to two different young entrepreneurs, both under the age of 22, that were either about to give up or completely mentally drained because of what they had been feeding on when it came to the online guru business success space. And so I'm going to go ahead and share a couple things, and I made this graph with one of them, and I want to share it with you. Okay? So this is, again, is inspired by some people calling it slavery to be an employee, pressing everyone that they should go start their own business, and in my opinion, causing a lot of damage to the young entrepreneurs in the community. So let me go and draw this graph out. This is going to be a graph of the money that someone would make if they were an employee versus if they were an owner. Okay. And I'm going to prove that if you're going to go the business ownership route and becoming an entrepreneur, you better be ready to be very patient in your quest to make a bunch of money. All right, so here's what we're going to do. We're going to have this as five different years. So, 1, 2, 3, 4, 5. Now, I'm in the landscape industry. I talk with a lot of landscapers. So I'm going to kind of use what I see a lot of times happening for our landscaping business owners, whether it be our franchisees or people that I talk to. I'm going to show the trajectory of income, profitability, and what I see so often happening when it comes to the first five years in business. So, right, we're at year one, we're year two, year three, year four, and year five. Okay. This is what I see happen From a business ownership standpoint, I usually see them starting to lose money in the first year because they're growing. And then what happens is they slowly start to make more money. A lot of times like this, looking at something like that, okay, this is gonna be on the y axis, is gonna be dollars, like how much money they're making. Okay, on the y axis, on the x axis, we have years of time. Okay. Okay. Now that is the business owners route. I'm not going to track what an employee might look like. Well, they're probably going to look like it's something like this.
A little bit of a slower growth pattern, maybe something like that. They're, you know, doing a 9 to 5, they're falling the corporate ladder, maybe being a gen manager, maybe being in a corporate position, et cetera. Now I'm going to track what happens to these two individuals over the course of five years. All right, so year number one, right here, we're going to assume that this person at this junction is going to make $50,000 in revenue. In year number two, the owner is going to make negative $100,000 because they're investing into their business. After a year, they put $100,000 into the business buying, you know, for example, in a lawn care landscape industry, maybe bought trucks, they hired people, they did advertising, they did a whole bunch of stuff to set their business up. $100,000, they're in the hole. So that's like this whole first year. And then if we drew this, this would be like 50 grand. All right, this is not to scale, this is just to make a point. All right, Then year number two happens. Okay? So we're going to assume in year number two that we still lost money for the business. So now we're at negative $110,000. So we lost $10,000 more. So we're doing this as a net. So we lost $100,000 the first year, we lost $10,000 the next year. We. Which puts us at a total of a negative 110,000. Now the employee, on the other hand, let's say they got a $10,000 raise. They're now making $60,000 a year. So now as a total, they are. Now they actually are up $110,000. Okay, negative $110,000 for the business owner, a net total of $110,000. Positive cash flow for the employee. Okay. Again, we're talking about this whole year right here. All right, Year number three happens. This is now when the owner, the business usually starts to do well. Especially in the landscape industry. Year three is always when I see the business owner start to really feel confident. They start to figure things out. They've got hiring down, their marketing's intact, they've actually figured out their Systems. Year number three, they do $50,000 in profit. Bottom line, take home pay, $50,000 in profit. Now their total is negative 60k. So 110, we were down before. We, we made a positive in year three of $50,000. Again, this is not to scale, but negative $60,000 of the new total for this business owner. All right, for the employee, they made another, they increased their, you know, they're working a corporate job, they got a raise. They made $70,000 in year number three. And so now they're a total of 100,000, $180,000 net total 80 to 50. Then they got, they got raised to 60 and now raised to 70. They made $180,000 as a combined total so far. Now we're at negative 60. All right, year number four happens now the business owner is doing good. They're starting to really roll very profitable. They're going to bring home a hundred thousand dollars in take home pay, which means, as if we added everything up, they're now at $40,000. If you add all of this up, they're a positive of $40,000. Whereas we talking now about the employee, employee, they get another raise. Now they went from $80,000. So they went from $70,000. Now they're making $80,000 per year. And so now at year number four, so we're here, right here, they are going to make, they're going to make $80,000. $80,000 on top of 180 is going to be $260,000. All right, so again, we're adding this up. This is all cumulative, right? So they got 50,000 first year, 60, 70, 70. Now they made $80,000. They made a combined of $260,000 for the entire.
