There’s an interesting article in Yahoo! Finance that discusses how Reaching the $5 Million Club Takes an Open Mind. The $5 Million plateau is significant because that is the generally accepted cut-off point for the wealthiest 1% of the nation. Once you have amassed $5 Million, you are truly among the fiscal elite. The article talks about how the majority of the people that have achieved that status have arrived in the last 10 to 15 years:

The number of U.S. “pentamillionaires” has quadrupled in the past 10 years, to more than 930,000. Indeed, 70% of the nation’s big family fortunes are less than 13 years old, according to research and marketing firm The Harrison Group. And the people who amassed them are, first and foremost, entrepreneurs — risk takers for whom wealth is a byproduct of pursuing their passion.

Not much of that information is surprising, but I think it is important to understand who is most likely to amass significant wealth - risk takers for whom wealth is a byproduct of pursuing their passion. And while I think the “byproduct of pursuing their passion” part is a bit too idealistic, I don’t think the “risk takers” description could be more appropriately applied.

The most difficult hurdle most entrepreneurs encounter when attempting to launch their own venture is stepping away from the security of a 9-to-5 existence — the paycheck, the boss, the office that functions when you’re not there, the lifestyle and family luxuries that the paycheck provides, etc., etc. The security of that existence ends as soon as you commit to running your own business. At that point, your livelihood, your professional reputation, and your sense of fulfillment will all be inextricably tied to your performance as a business owner.

Most people are not willing or able to assume that kind of risk. And for many that do, the results are less than spectacular. But in order to truly strive for greatness as an entrepreneur or to pursue your passions with the necessary level of commitment, you must be willing to let go of the security of your previous existence. The house, the car, the college funds, all of it. All of it must be negotiable if you are going to commit to running your own company.

And you have to be prepared for the fact that your venture might not materialize as you have envisioned it. You shouldn’t be prepared to accept failure, mind you, but you must be prepared to chalk up whatever happens to a “good learning experience” or something to that effect.

Basically, you must be willing to be poor if you want to be rich.

Tags: entrepreneurship, risk takers win in business, risk to win, starting your own business, wealthiest one percent

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