What income makes entrepreneurship worth it?


For entrepreneurship to be worth it you need to make 2-3x the money you could at a job.

Many will disagree with me, but frankly, I think it's a cope to justify their decision to hang their own shingle. I truly think many would be happier working for somebody else.

Entrepreneurship culture glamorizes the good parts but doesn't touch the bad parts. When things are good you're on top of the world, but when things are bad it can feel all-consuming.

There's a premium that makes dealing with the stress of managing, hiring, firing, financing, selling, etc. and for me, it's roughly 2-3x what I could expect to make.

If you could make $250K in tech sales, you need to make $500k-750K as an entrepreneur for it to be worth it. If you aren't getting significant leverage from employees, capital, or tech (meaning you're making that same $250K) it's a recipe for misery.

You can feel trapped...the solution?

Build a bigger company. I used to think I wanted small companies, but as I've gained experience I'm realizing bigger companies provide security, the ability to hire competent employees, and install management.

Bigger companies allow you to earn 5-10x+ on your time compared to employment.

For example a $10M company with 25% margins = $2.5M in profit.

Assume the shareholders get $1.5M and $1M is left in the business.

If you own 50% of the company you'll earn $750K and have only spent a few hours a week on the business (management handles day-to-day).

$750K in 10 hours per week = $1,442 per hour

$250K in 40 hours per week = $120 per hour

This comes out to 12x the earnings.

I've spent a bunch of time thinking about this and come to the following conclusion:

Achieving some level of scale is the only way to make entrepreneurship worth the headaches and stress.





Hi, I'm Barrett

I've bootstrapped multiple seven-figure companies and am sharing hard-earned lessons and insights about entrepreneurship.

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