#1 - Why Small Business? The Best Tax Deal in America
Sep 4, 2023
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Explore the advantages of owning a small business, including tax advantages and personal sovereignty. Hear stories from individuals who started their own businesses and navigate the challenges they faced. Learn about the difficulties of running a business through an inspiring pie shop story. Discover the benefits of scaling up a small business and the value of personal development. The hosts emphasize the importance of taking action and being successful in business.
Owning a small business provides numerous benefits, including favorable tax treatment, the potential for financial success and building personal wealth, and the opportunity for personal growth and autonomy.
Another key aspect of owning a small business is the personal sovereignty it offers, allowing for self-expression, autonomy, and the ability to prioritize personal lives.
Owning a small business can be a transformative experience that helps individuals discover their full potential, test and sharpen various abilities, and empower them to become the best versions of themselves.
Deep dives
The Benefits of Owning a Small Business
Owning a small business provides numerous benefits, including favorable tax treatment, the potential for financial success and building personal wealth, and the opportunity for personal growth and autonomy. Small business owners have the ability to deduct business expenses, access various tax deductions and credits, and enjoy the flexibility of managing their own schedule and making decisions that align with their values. Owning a small business also allows for creativity, innovation, and the possibility to develop an excellent product or service. Additionally, small business ownership offers the potential for financial independence, the ability to build an asset that can be sold, and the opportunity to create a legacy. Overall, owning a small business can provide a fulfilling and rewarding experience for those willing to take on the challenge.
The Importance of Personal Sovereignty in Small Business
Another key aspect of owning a small business is the personal sovereignty it offers. Small business owners have the freedom to be themselves, make decisions consistent with their values, and have greater control over their own lives. Unlike being an employee, small business owners can express their creativity, make autonomous decisions, and have the flexibility to prioritize their personal lives. They are not confined by corporate policies or limited by the expectations of others. This personal sovereignty allows for self-expression, artistic integrity, and the ability to do things in a way that aligns with one's own beliefs and principles.
The Transformative Power of Small Business Ownership
Owning a small business can be a transformative experience that helps individuals discover their full potential. It tests and sharpens various aspects of one's abilities, including physical health, emotional intelligence, and the skills necessary for running a successful business. Small business owners have the opportunity to push their limits and see what they are capable of achieving. This personal development can lead to personal growth, increased self-confidence, and the acquisition of new skills. Small business ownership allows individuals to explore their leadership abilities, innovate, and find new ways to deliver value to customers. It is a journey that challenges, shapes, and empowers individuals to become the best versions of themselves.
The Financial Advantages of Small Business Ownership
Aside from personal growth and freedom, owning a small business can provide significant financial benefits. Small business owners have the opportunity to build wealth by reinvesting profits, increasing personal income, and accumulating assets. They can take advantage of various tax benefits, such as deductions for business expenses, employment taxes, and special accounting methods. Additionally, small business ownership allows for strategic financial decisions, such as investing in real estate and other opportunities that support wealth creation. Moreover, owning a successful business can open doors for potential business partnerships, collaborations, and future financial opportunities.
Not Everyone is Suited for Small Business Ownership
While small business ownership offers many advantages, it is important to recognize that not everyone is suited for it. Some individuals may not have the inclination, disposition, or skill set to run a business. Additionally, certain industries or business models may be more complex and require specific expertise or resources. It is crucial for individuals to assess their abilities, values, and desired lifestyle before embarking on small business ownership. Those who prefer the stability, simplicity, or structure of being an employee may find greater satisfaction in that role. Small business ownership requires dedication, adaptability, and a willingness to take risks, and it may not be the right path for everyone.
Starting a business is hard, and there's no shortage of stories in the media bemoaning the high rate of failure for small businesses, the long hours, the lack of benefits. For Mitchell Baldridge and Scott Hambrick, however, small business is the big time, one of the best ways for the common man to build wealth, find autonomy in his work, and align his work with his values. In small business, there is no work/life balance -- work and life become entwined, and the business becomes an extension of the owner. As a result, the owner gets to shape the culture of the company, gets to set the hours, and set boundaries around what he will and won't do. In short, the owner gets to be a real person. Most people can't find this degree of freedom outside of small business!
It takes guts, and the ability to tolerate risk, but if you're cut out for it, Mitchell and Scott make a strong case for dropping out of the rat race and tossing your hat into the arena of small business. And as Mitchell argues, you get to take advantage of the best tax deal in America.
