Entrepreneurship. The word itself sounds magical. It conjures up all sorts of wonderful images. You imagine yourself coming up with a brilliant idea, building a great product, and resting on your laurels for eternity. You can earn more income without putting in extra effort.
Employee. What does that word feel like to you? Words such as “bland”, “unimaginative”, and “restrictive” come to mind. You picture someone breathing down your neck, telling you what to do.
Not only does being an employee sound unappealing, but there’s a ceiling to your earning potential. As an employee, your salary is fixed. Yes, you get raises, but they’re fixed and ultimately decided by someone else.
And what about professions that charge hourly rates? A consultant may earn hundreds, even thousands by the hour, but the consultant is still limited by something finite: time. At some point, the person’s earnings are capped by the number of hours worked. The moment the person stops working is the moment money stops coming in.
The relationship between time and earnings is the difference between scalable and non-scalable professions.