Tropical MBA: Entrepreneurship & Founder Lifestyle #823 Why $120K From Your Biz Beats $150K at a Job
Sep 4, 2025
What’s the real freedom number for entrepreneurs? The hosts discuss why a $3-4M exit might be preferable to the chase for $10M. They debate whether being 'unemployable' is a badge of honor or just a self-image ploy. Summering in Europe versus Austin sparks conversations on financial choices and networking. Plus, insights into the advantages of small business income over traditional salaries, and the importance of smart investing in assets like Bitcoin for long-term wealth.
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Value Time Over Slight Salary Gains
- Take the small-business pay if it buys time and control over a larger W-2 salary differential.
- Expect tax advantages and lifestyle savings to narrow the gap versus a $30k W-2 boost.
Think Of Income As Cashflow, Not Future Exit
- Treat both W-2 jobs and small businesses primarily as cash flows since most businesses aren't sold.
- Hold yourself to producing growth so the business surpasses W-2 income within a reasonable timeframe.
Don't Quit Until The Business Trajectory Is Tight
- Wait for recurring small-business cash flow to be obviously on a path to exceed your W-2 before quitting.
- Prefer a tighter safety ratio now: ensure you can surpass W-2 within roughly a year after leaving.