EP8 - The Salaried Employee

19 yo entrepreneur just raised $2M for his startup last week.

Everyone claps. Everyone loves a story of a good entrepreneur.

I dont think people understand.

That 19 yo? 90% chance he will fail and go homeless.

The entrepreneur is a street performer with an LLC -- He juggles VCs, customers, and payroll.

It's a high-risk, high-effort, low-probability bet on his own genius.

And his bet almost never works out because he is so full of himself.

I, on the other hand, am a salaried employee.

I dont think you understand.

It means I have a single, captive client with infinite money -- especially if its a government.

The founder or taxpayers takes all the risk. I take a salary.

If the company fails, the founder loses his house. Taxpayers loses their retirement. I get a severance package.

If the company succeeds, everyone gets rich. My stock options are a tax on his success, with none of the downside.

Lesson?

Stop selling to so many customers. You only need to sell yourself to one.

Follow me for more financial advice.

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Context

Well, employee's downsides is that you get fired.

In practice, getting employed already puts you ahead of the curve over most business owners.

I dont think people understand how good they had it when they are employed by people who care about them.

Chances are, people only learn it after they start running their own business.

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