Running a small business

I know people who have hit investing home runs by owning or buying businesses. Unlike the part-time nature of investing in the stock market, most
people work full time at running their businesses, increasing their chances of
doing something big financially with them.
If you try to invest in individual stocks, by contrast, you’re likely to work at it
part time, competing against professionals who invest practically around the
clock. Even if you devote almost all your time to managing your stock portfolio, you’re still a passive bystander in a business run by someone else. When
you invest in your own small business, you’re the boss, for better or worse.
For example, a decade ago, Calvin set out to develop a corporate publishing
firm. Because he took the risk of starting his business and has been successful in slowly building it, today, in his 50s, he enjoys a net worth of more than
$10 million and can retire if he wants. Even more important to many business
owners — and the reason that financially successful entrepreneurs such as
Calvin don’t call it quits after they’ve amassed a lot of cash — are the nonfinancial rewards of investing, including the challenge and fulfillment of operating a successful business.

Similarly, Sandra has worked on her own as an interior designer for more

than two decades. She previously worked in fashion as a model, and then

she worked as a retail store manager. Her first taste of interior design was

redesigning rooms at a condominium project. “I knew when I did that first

building and turned it into something wonderful and profitable that I loved

doing this kind of work,” says Sandra. Today, Sandra’s firm specializes in the

restoration of landmark hotels, and her work has been written up in numerous magazines. “The money is not of primary importance to me . . . my work

is driven by a passion . . . but obviously it has to be profitable,” she says.

Sandra has also experienced the fun and enjoyment of designing hotels in

many parts of the United States and overseas.

Most small-business owners (myself included) know that the entrepreneurial

life isn’t a smooth walk through the rose garden — it has its share of thorns.

Emotionally and financially, entrepreneurship is sometimes a roller coaster.

In addition to the financial rewards, however, small-business owners can

enjoy seeing the impact of their work and knowing that it makes a difference.

Combined, Calvin and Sandra’s firms created dozens of new jobs.

Not everyone needs to be sparked by the desire to start her own company

to profit from small business. You can share in the economic rewards of the

entrepreneurial world through buying an existing business or investing in

someone else’s budding enterprise.