Money never comes easily.
So many people want to start their own companies and become millionaires, and this is where the problem lies. What exactly are people doing to move from thought to action? The world is not what it once was 30 years ago. Everything has changed. Entrepreneurs are all around us now, but the concept is not what you think it is. People today want success more than ever, but they go about it in the wrong ways.
Gary Vaynerchuk, a successful entrepreneur and man in charge at VaynerMedia was a guest on the podcast Breaking into Startups, and he gave some new insights into our economy and how young people can take advantage.
Too much is fake out there
Reality TV shows and their brethren have been deceiving the average person for so many years now. They force-feed us unrealistic successes and paint is the norm. Now, everybody wants to live their best lives without even lifting a finger. It now seems the sexy thing to do right now is start a business. Nobody wants to go to college anymore, and no one is saving for retirement. We all want to be the next big entrepreneur who cashes in millions overnight.
“Starting a company has become standard, and I think that is insane and scary. It is like going to the NBA is standard,” Gary explains. Most people don’t know how difficult it is to start a new business. 99% of startups end up failing. Everyone isn’t built to run a business, and there are so May challenges to be faced.
The media has painted entrepreneurial success as something that can happen overnight, but the true stories of success will tell you of a journey filled with failures, barely breaking even and a lot of learning. You can’t learn how to be a successful business in the classroom just as you can’t play sports just by reading about it. You have to go out there and practice.
A lot of people talk the talk, but very few are ready or willing to walk the walk. And this is why people end up failing.
The future of successful online businesses
Facebook and Uber are typical examples of the most successful businesses out there, and they were created by “kids.” There will be new concepts and technologies developed by young people in the future, but a very interesting market of million-dollar business people is predicted to come up in the not so distant future.
Gary is predicting that folks who are in their 60s and 70s and having grown up with the internet will be setting up online businesses that will rake in millions of dollars. They will outnumber those in their 20s because unlike these youngsters that think they know it all, these old folks do. They have been through so much in life and have observed the true workings of the world. They will be strategically positioned to solve many different problems
“I have this great idea. Why not turn a retirement home into an incubator — like a Facebook campus? These people are in the game, and they are going to live to 110 or 115 because of it.”
Debt is a slow killer, and people willingly enter into debt just to keep up a façade that serves them no good. Unfortunately, when you look at the math, it doesn’t add up, and this will not bode well for the economy.
A lot of young people are spending way above their means. Gary offered an example: “When a college grad is $213,000 in debt, has a job that pays $84,000 salary and is still able to borrow $500,000 to buy an apartment, it is over.” College debt will probably do as much damage as the housing crisis did back in 2008.
The education terrain has changed so much over the last five decades. Back in the 30s and 40s, students picked up the exact vocational skills that were required in their jobs. As time went on and colleges became popular, people set out in pursuit of the American dream, but very few understand how to apply the skills that are gained in their time in college. And we have so many people still struggling with college debt.
Sooner than later, colleges will have to pivot and rebrand the same way the banks did after the housing crisis. College debt is a real threat to the economy, and the dangers are imminent.
Money doesn’t come easy
Apart from people who win lotteries and inherit fortunes, there isn’t any scenario where money just magically falls on your lap. People have become infatuated with the idea of becoming millionaires without doing anything. A lot of businesses start and end up going into heavy debt before eventually failing. 99% of startups fail because people aren’t approaching it correctly.
Your story can be different, and Gary believes that kids who desire to build their businesses must learn to start off small and humble and be patient in the first 5 to 10 years and learn as much as they can. Armed with this knowledge and experience, you can then build your business correctly in your 30s and 40s and success will be yours.
“People complain. People whine. And the problem with these people is that they need to work. I think people are unbelievably soft to the ambition coming out of their mouths.”
If you want to be successful in business and make those millions, build a solid foundation for success in your early 20s and 30s and then spring forth from there.