Job vs Business - Income Calculator
I created this spreadsheet to understand the pros and cons between starting a business and working in a Job. They both have different growth rates and starting points. If you are highly successful in your career, your incremental cashflow will be higher in your Job in the short term. Its easy to grow from $100k per year to $110k per year (10% y-o-y growth). Compare this with a Business, where you are starting from $0 per year. But in the long term you capture more value from your work when you own the cash machine aswell, like in a business.
The hardest part of a business is overcoming the the risks involved in making it successful. I would suggest to protect your downside by creating tiny projects that would take care of your monthly expenses. Or you could save a huge pile of money to have long runway for your new business.
You can input your variables in the calculator to find how much value(in dollars) can you capture in the long term.
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