Business vs Employment

[kotajikikox]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

[PostQuantumBTC]

You are using the richest men in the world to just make your conclusion but which is not right. There are people that are working under them that are very rich.

I have seen some oil companies that their top workers like the manager of a bank, oil companies or tech companies that are very rich.

Some people first work under someone also before establishing his own business.

There are also people that have their own business but they are not rich. I understand what you want to say, that people should be independent which is right, but not everyone can be.

[hmbdofficial]

Even though  it's technically  possible  to become wealthy from a good pay check but it's somehow very  rare. Building  wealth from pay check can be very slow due to the fact that paychecks  are tied  to your time, your skill  and what your employer  is willing  to pay you. Even if you are really  hard working  you can't  work  pass what the company  offers or need your services  for as such  you can only work for the time you're hired  and get paid for the  time only. And that  will be slow in building  wealth  because  you will need to wait for pay check after those period  of work.
While it's not like that in the business  sector, wealthy  people  usually scale income  exponentially from through  business  or investment  that doesn't  need  their direct  ongoing  efforts  to  make money at a particular  time.
That  is just the reason  why you can see a lot of wealth  men coming  from the business  sector.

[Faisal2202]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

I agree that nobody can become untouchably rich by being an employee alone, but they at least can become immensely wealthy. The secret lies in how these top tier employees are compensated, like they could have been getting paid in equity (ownership), which could turn them from simple wage earners into business owners one day.

Employees will always have an hour cap, they can only earn a limited salary, while business owners do not have such limitation. They can earn a lot or nothing.

Many people working in companies like Apple, Microsoft, etc. receive some of their payment in the form of equity. For example, Tim Cook became a billionaire because of Apple stock grants he used to receive as an executive when he joined as an employee in 1998. The math is simple here.

Low risk as a standard employee gives you a fixed salary and a guaranteed paycheck.

High risk as a business founder gives you no guaranteed paycheck, and the chances of failure are high, but the upside potential is infinite.

[Joy_learns_crypto]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

There are many millionaires who came from being employed under a company. There are high paying jobs for employees that can make them millionaires.
Some people said to be a billionaire you are either committed a crime, committing a crime or someone in your family before you has done that.
But you payment from being under a company can help your business.

[Smartprofit]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

In fact, there are a very large number of people who have become millionaires without starting their own businesses. These include top actors, singers, and athletes. They also include investment fund employees and top managers of large corporations. 🙋

Working for hire is a very good way to become rich. But it also has its drawbacks. Firstly, the number of high-paying jobs is limited, and there's intense competition for them. Secondly, after 40, it's difficult to participate in this competition. You can only defend your existing positions.

Working for hire also allows you to gain necessary experience in a particular industry. This, in turn, allows you to create your own business. Copying the structure of someone else's business is much easier than creating your own from scratch. I've met many people in my life who started out as employees and then launched their own successful businesses.

Have you ever wondered why some jobs allow you to earn millions of dollars (like being a Hollywood actor), while others don't (like being an accountant)? It's very simple! Nassim Taleb explains this paradox in his books.

If you're an accountant, there are a huge number of accounting positions available at various companies. If you're an actor who wants to star in Hollywood films, there are critically few such positions. Actors are paid big salaries because becoming an actor is very difficult. You have to win against extremely tough competition. Similarly, becoming a top manager or an athlete (world champion) is very difficult. Nothing in this world comes easy. 💁

[7juju]

Even though most of the richest people in the world are from the business world, I have seen people that very rich that are working and earning salaries without owning businesses. There are multibillion dollars establishments that pay their employees very well to point that they are very rich, they can afford everything they ever want in their life. Let’s take footballers for example, they earn big money from salaries without owning businesses and they are rich.

[AmaGold70]

The point is that, if you are a business man or an entrepreneur, you are your own boss, and therefore not accountable to any one instead you employ people to work for you, and you pay them. This is entirely different from an employee. As an employee, you are not independent, you work so hard but your wages or salary is Small, and you wholly depend on your employer to earn money. It is not actually bad to work for another person, but you should be wise enough to esterblish your own business, and learn not to depend on your employer to grow financially. So when you now invest your money in the right business, you can be able to become rich.
Your salary alone cannot make you rich except when you invest with it.

[lovesmayfamilis]

How can someone who works for hire get rich? I can only imagine one possibility: if his employer gives him half of his wealth at some point. Everything else from the employer will be fixed earnings. But even in this case, having passive income from an investment or other business gives a person the opportunity to stop being dependent on an employer. What is necessary for this? Qualifications and demand. These two qualities allow a person to choose, and in a sense dictate, the terms of his salary, which he will be ready to fulfill, and then, with free funds, build his own business.

[Mahiyammahi]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Cause those millionaire's don't get enough lime light to be in front line. You need to exclude the billionaires cause only handfull of billionaires you will find in the world. But there is 60M of millionaires according to reports. It's not totally impossible to step on millionaire by doing Job , but it's hard. In my country perspective some roles in Textile industry pays ocer to 250k-300k BDT/Month. Which is enough to lead a luxury life in my region. If this person can manager their expenses and smartly manage the cash flow it's possible to become a millionaire within 10 year.

So this types of cases are rare and not very familiar. But from business it has lot's of opportunities to grow. That is why most of millionaires and billionaires are come from Business background.

[sokani]

You are using the richest men in the world to just make your conclusion but which is not right. There are people that are working under them that are very rich.

I have seen some oil companies that their top workers like the manager of a bank, oil companies or tech companies that are very rich.

Op didn't mention anyone; he/she only asked a simple question, and he/she isn't wrong either. If you checked the 100 top millionaires in the world, you wouldn't find an employee on the list but business owners.

Some people first work under someone also before establishing his own business.

If they retire to set up their own business are business owners but if they are gainfully employed and, at the same time, are business owners. They are in the middle and do not fit into any of the categories.

[PostQuantumBTC]

You are using the richest men in the world to just make your conclusion but which is not right. There are people that are working under them that are very rich.

I have seen some oil companies that their top workers like the manager of a bank, oil companies or tech companies that are very rich.

Op didn't mention anyone; he/she only asked a simple question, and he/she isn't wrong either. If you checked the 100 top millionaires in the world, you wouldn't find an employee on the list but business owners.

This is wrong.

Or you are referring to billionaires?

I said he is using the richest to make the conclusion, you said no he did not mention anyone but you are saying if I check lists of 100 billionaires. You are only contradicting yourself.

If you said millionaires, there are people that are employed that are millionaires that are very rich people. Bank managers and managers of oil and tech companies are examples. Do not post about what you do not know.

Many people start from being employed.

[Fortify]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Come from businesses? You mean created or cofounded one presumably. These people also often came from rich families, which provided them exceptional education, connections, seed money and freedom to try lots of different things which is a massive boost to an early company. There is no doubt that they become independently very clever through this whole experience, but there are plenty of cases where they did casual or even professional work before starting up their mega corp, because it gives them general life experience. Nobody is ever going to get billionaire rich working for others, but there are plenty of self made millionaires who are doctors/lawyers/dentists and even some with trade skills.

[ruykeri]

Those who can take risks can get more profit. But not everyone can take this risk, even many do not want to take this risk. That is why some choose jobs as their income source in life, and many prefer business. Both have problems, and there is also success. But how one wants to lead life depends on himself. Now think that a person wants to live a normal life. He does not want to be mentally stressed by taking any risk. In this case, a job will be the best option for him. He will do whatever work he has  and , he will get salary at the end of the month. But if someone do not like working under a company. For those who want to do a business on their own, earn a lot of money and also like to take risks, business will be considered a good way. The main thing here is how who is choosing which option.

[Nalain420]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

When we work as an employee our salary is fixed we are basically trading our time for fixed amount of salary where as when we own a business we create assets that grow in value giving us exponential growth. Business owners don't get paid for the time in fact they get paid for the value their business is creating in the market they built products or team that work for them throughout the day. Being an employee we are working for someone else to build their assets and helping them grow exponentially while our salary is linear with our time we are giving to that company and business owners are capturing the profit that employees for them. Employees works as a machine who generate profit for the business owners.

[m2017]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

I suspect one reason is the scalability of the business, whereas in an employed workforce, it's impossible to work more than 24\7 (it's physically impossible for one employee to have a productivity greater than one). This means that in a business, you can attract many people who will spend their time (for a salary) producing something, which allows you to speed up processes and generate more profit.

For example, one tailor (either employed or self-employed) sews 100 units of clothing in a week (and earns $1,000 in revenue). A clothing factory owner who employs 100 tailors has the capacity to produce 10,000 units of clothing (and earns $100,000 in revenue per week).

This represents the revenue from which profit is derived after expenses are deducted.

See the difference?

That is, business allows you to “buy” someone else’s time (usually cheaply) and scale up (receive more profit by increasing the sale of goods or services).

[uneng]

Keep in mind that for every wealthy businessman you think about, there will be many employees working for them in authority positions. These people have huge wages and also invest their money in profitable ways. However, these are low profile individuals who prefer to remain discreet, far away from the spotlights. But they are wealthy, anyway, and essential participants of the business.

Without them, the businessmen you think about wouldn't be on the current position they are right now. So they have to make sure to pay their top tier employees very well.

[Hamza2424]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Job holders could also become millionaires, but that needs a lot of discipline and financial planning. You have to kill all the bad habits that are costing you a lot because many job holders never care about savings until they are given proper financial education or at least some idea of how saving can change their lives. Usually they learn it on their own, but there are also people who need to be told. Anyway many people spend their salaries living month to month, meaning their salary ends before the month does and they have to take loans or use credit until they receive their next paycheck.

There are many success stories on the internet where people started with jobs and later built their own businesses and changed their lives. Because bro, when you run a business there is no fixed limit, you usually get according to the effort you put into it. The more you grind, the more you can earn. But in jobs, the harder you work, the more your bosses usually earn too, that is the reality. Still, with strict financial planning and discipline, a person can become a millionaire, but for that you also need a good paying job.

[crwth]

In making more money, it's always going to be capital earning returns, and not a fixed wage. Businesses enable reinvestment and compounding of profits. Usually, salaries wouldn't compound unless you invest it ^{(ehem BTC)}  

There are a lot of ways now to really make sure that it's making value. Ownership will be scalable and could compound.
^{(I think this is the simplest way to analyze this.)}

[qwertyup23]

Why is it that most millionaires or billionaires come from businesses? I rarely see someone who made immense wealth through being an employee under a company. Most people get employed, save up, invest in businesses and get rich. But no one actually becomes untouchable rich just by being an employee. What are the reasons for this?

Having your own business means you control a particular sector and market share on the whole world. If you at least control a percentage of that market share, that means you're garnering more than millions to billions of dollars in revenue alone.

Being employed can also yield you a comfortable life especially if you have a high-paying salary depending on your job. While we rarely see an employed person being a millionaire, majority of them at least live a comfortable life to the point that they do not have to worry anything financially.

In conclusion, having your own business means you control everything. However, the risks associated of managing your business are particularly rough given that most businessmen quit due to the high pressure, risks, and costs that they incur as a total of their expenses.