Owning a business isn't inherently risky in and of itself. The risk arises when an owner applies his or her skills and abilities to a particular company. Those skills and abilities can increase or decrease the risk involved for the individual owner.
The average person calculates their pay by looking at their salary minus taxes. Those looking into business ownership may even project a wage for themselves, based on what they make at their current job. These equations leave out a critical aspect of business ownership, that of Owner Benefits (OB).
Do you currently own or rent your home? A big part of the great American Dream is purchasing a home of your own. If you are considering buying a business, chances are you already own your home. Whether you buy a house or a business, you are growing an asset that works for you.
To make the leap from an employee mindset to that of a business owner, you must shift your thinking from the "salary mentality" to that of the "cash flow and asset creation mentality" of a business owner. That dramatic shift requires an analysis of your salary and benefits as an employee versus the total picture of the costs and benefits of building a business.