Entrepreneurs are real go-getters. If you’ve ever wondered how you can break out of the 9 to 5 life and become the next Jeff Bezos, keep reading. We’ll show you everything you need to know about becoming an entrepreneur and show you the salary and net worth of the highest paid earners.
What is an Entrepreneur?
Becoming an entrepreneur is a way to get out of a fixed salary and a typical 9 to 5 lifestyle of a full-time job. Instead of caps on your value and strict company dress codes, you can have limitless value and design your own business. There’s no limit on how much you can make or when you must work. After you invest some funds into your company and pay for any costs of operation (and set aside tax payments), the rest of what you make is yours to keep. The benefits include much more, including:
Entrepreneur Salary vs. 9 to 5 Salary
Entrepreneurship isn’t a way to get rich quick. But when compared to the typical 9 to 5 career path, it can allow you to grow in various ways and live a more freeing lifestyle. The two types of positions also vary in how you’re paid.
When you work a 9 to 5 job, you probably receive a set paycheck in the same amount every two weeks. You may even have it directly deposited into your bank account. An entrepreneur salary, on the other hand, can come in many forms. Most either pay themselves by creating their own salary or they take their payment from the business’s profits.
If your business doesn’t do well one month or you have a steep business cost, the owner’s salary may suffer. Not every business owner has a regular or large salary. Often, how much you make can depend on your industry. Some will have slow periods as well when many companies focus on initiating new processes.
Entrepreneurs also need to set aside tax payments, and they must make quarterly payments to the IRS throughout the year because unlike working for a company, they don’t pay taxes out of each paycheck. When you work for a company, your employer matches you 50/50 on taxes. As your own boss, you pay the full amount by yourself.
There are many reasons to become an entrepreneur, but the people who do choose to work a 9 to 5 job do so for income stability. Corporate jobs also come with added perks like health insurance, 401ks that are matched by your employer, maybe a Christmas bonus, and a steady paycheck you can rely on.
How Do You Become an Entrepreneur?
Becoming an entrepreneur doesn’t rely on a specific education or degree. High school dropouts and graduate degree holders alike can find roles as entrepreneurs. It’s all about learning as you go and continuing to build up new knowledge every day.
That said, many entrepreneurs have previous experience in business school. Courses in business can help you learn how to develop and manage a prosperous business. However, entrepreneurs work in any industry and most likely have extensive experience in a few closely-related roles.
Entrepreneurship isn’t easy though, and many people spend long nights or weekend hours working. Projects may determine when you’re busy and when you can rest, and starting a new business can take a few years to pay off. With all the time and money you need to invest in starting up a business, you may make much less at the beginning of a venture but you must if you want the business to succeed.
The Average Entrepreneur Salary
The average entrepreneur salary in the US is $69,633 per year according to Indeed, with the lowest percentage averaging around $10,400 and the highest salaries land around $138,800 according to Career Explorer. Overall, most salaries for small business owners hover around $72,000.
The average income is above the median US household income of $52,000 a year and most entrepreneurs make more than normal wage employees. However, income will vary based on experience level, skill, and industry. Beginners, for example, may make much lower salaries than the more experienced entrepreneurs, and not everyone becomes a billionaire. Salaries vary based on industry, location, and the type of business as well.
The highest paying states are often where large cities are located. According to the US Small Business Administration, the top paying states for small business owners include:
These states are where many new establishments and jobs are located, which allows entrepreneurs more opportunities.
Entrepreneurs can also make more money if they sell their business, and those additional profits aren’t reflected in the national average salary. So, if you were to produce multiple high performing websites, you could sell off a couple of them to bring in the big bucks. However, this average salary is a picture of how the normal entrepreneur performs annually. Only a few entrepreneurs will become multi-billionaires, and the odds of becoming a top paid forerunner is rare.
What the Highest Paid Entrepreneurs Do
Most of the highest paid entrepreneurs, the top names in the world, find something people want and need and figure out how to market it better than ever before. They come up with unheard of ideas and know how to spot when they’re onto something.
When it comes to popular industries, many entrepreneurs strike it big in technology and internet-based roles. Trendy services such as YouTube or Etsy make it easier to start a business venture. Other common industries include:
Whatever industry you join, make sure you’re selling a product or service that people need. If they have no use for it, you won’t get far. These are the top 10 richest people in the world (updated in 2019) who got there by changing the game and transforming the way the world functions today.
Net Worth of the Top Paid Entrepreneurs
Unlike the average entrepreneur salary, the highest paid entrepreneurs make billions and become famous names in their industry.
Jeff Bezos – Net worth $145.3 Billion
Founder of Amazon, the popular online company that’s a go-to for bargain shopping, Jeff Bezos is currently the richest man in the world. He started Amazon as an online bookstore with great prices, and although sales were slow in the beginning, he quickly put top name bookstores out of business with his model. Since then, he’s acquired Wholefoods and introduced faster than ever shipping using drones. Today, Bezos is the first man to hit a net worth of over $100 billion.
Bill Gates – Net worth $98.3 Billion
The founder of our beloved Microsoft, Bill Gates was the richest man in the world for a long period of time. He started the company back in 1975 and grew his PC software company into the largest of its kind in the world. Gates’ net worth just keeps going up over the years, as he hasn’t stopped striving to change the world yet.
Bernard Arnault – Net worth $83.7 Billion
CEO of Louis Vitton Moet Hennessey (LVMH), which is the Louis Vitton fashion brand and Moet Hennessey champagne and cognac businesses merged into one, Bernard Arnault is a French businessman. Like many entrepreneurs, he has a side gig as an art collector and tastemaker. Arnault has quickly risen his net worth, and his way of grouping competitive brands together was once very innovative in the luxury goods industry.
Warren Buffett – New worth $82.7 Billion
American entrepreneur, Warren Buffet is also CEO of Berkshire Hathaway and an investor. He’s one of the top successful names in the world, and although traders and other people look up to him, he’s modest about his steep net worth. Not only does Buffet still lives in the house he bought before he was a billionaire, but he also works at keeping up to date in his industry each day.
Amancio Ortega – Net worth $67 Billion
A Spanish entrepreneur, Amancio Ortega is the founder of the fashion group called Inditex. The company owns many popular clothing stores across the globe, including Zara. The fashion industry is a good place to be creative in order to stand out, and Ortega knows in this business you need to keep your chin up. His net worth recently decreased around $11 billion, dropping him to #5 on our list.
Larry Ellison – Net worth $64.1 Billion
Co-founder and CEO of the Oracle Corporation, Larry Ellison ran the successful tech company until 2014. Technology is an innovative and lucrative industry to work in, and companies like Oracle hire over 136,000 people every year. Today, Ellison’s net worth still reaches the top in the world.
Carlos Slim Helu – Net worth $61.7 Billion
A Mexican businessman, Carlos Slim Helu is also an investor and owns Group Carso. The conglomerate consists of brands from not just one industry, which is a smart way to earn billions. The company owns brands in health care, real estate, media, retail, and even energy services. He recently dropped $6 billion in his net worth, but Carlos doesn’t seem fazed.
Mark Zuckerberg – Net worth $61 Billion
The well-known founder of Facebook, the most popular social media website in the world, Mark Zuckerberg recently dropped from #1 in net worth. Recent scandals involving Facebook and other issues has caused Facebook’s stock to fall. However, the innovative company shook up the globe when it first launched, and it all started in Zuckerberg’s college dorm room.
Michael Bloomberg – Net worth $57 Billion
This man shows that entrepreneurs don’t slow down with age. Politician and American entrepreneur, Michael Bloomberg is the CEO and founder of Bloomberg L.P. The company focuses on both media and financial data, and the 74-year-old Bloomberg has managed to add around $5 billion to his already high net worth in recent months.
Larry Page – Net worth $55.2 Billion
Co-founder of the huge search engine turned tech company known as Google, Larry Page was involved back when the company worked out of a garage in the late ’90s. Because Google has successfully become the top search engine, then gone on to produce phones and acquire other lucrative companies like YouTube, Page quickly and easily became rich.
Can Entrepreneurship Make You More?
Many entrepreneurs make more money than in traditional jobs with salary caps. However, some months may be better than others. Because you never really know where your next project will come from, you often need to set aside the money you can rely on when a rainy day strikes. Entrepreneurship doesn’t guarantee you’ll become wealthy.
Remember to invest your money smartly when the cash is flowing freely and remain flexible during the times where circumstances will inevitably change for the worse.
Although becoming an entrepreneur will not necessarily make you one of the top net worth earners who bring in billions, it’s a rewarding lifestyle that extends your career beyond a traditional job. You may be able to build more wealth, but entrepreneurship is all about gambling on yourself first and foremost. If you’re willing to work hard, this could be a lucrative career path for you.