What’s the Rate of Return?
Guest blogging for someone else is a little intimidating. I’ll do my best to keep up Dane’s quality. You’ll just get my take on business.
When looking at a business opportunity I tend to look at how much time is involved and the rate of return on that investment. For me it all relates to how much time will it take me to make X dollars.
If you’re working in a business 60 hours a week and making a gross salary of $60,000 a year, your hourly rate works out to just under $20 an hour. The question comes; can you make that kind of rate somewhere else?
In addition to your hourly rate, how much money do you need to put out? My online bank offers 2.2% on savings and has five-year CD’s that earn 4.1%.
Lastly, you need to deal with the stress. Running your own business is a LOT more stressful that just working for someone else. When you’re someone’s employee and you go home, you don’t have nearly as many worries as you do, when you’re the owner.
But some of us are wired in such a way that we just don’t make good employees. If you feel that is your inclination, go for it. But don’t let your emotions get in the way of good business decisions.
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