Quicksand Quotient I

Many entrepreneurs go into business seeking to build their net worth and, although they keep the doors open, wind up in financial quicksand.

Carefully examine your motivation before going into business.

Are you looking for a job, or do you want to create wealth? Most new business ventures start to create a self-employment opportunity. That's okay. But if you're looking for a job, likely that's all you'll get.

The "job related start-up" increases the probability that you will become so involved in the business you and it will become synonymous. This common identity will dramatically reduce the value of the enterprise should you want to sell it. In fact, separating you from the business so you can sell it at any price will be a challenge. The moral of the story? Creating a job by going into business may get you nothing more than a decent living.

On the other hand, if your primary purpose is to create wealth, you need eventually to move away from running the whole show yourself. That requires the development of an effective team. Wealth is created by entrepreneurs who are willing, and sufficiently skilled, to build organizations. The business and the entrepreneur must be separable to build wealth.