Why isn't everyone doing this?

It's so weird, I know so many people that are smarter than me, harder working than me and more committed than me.
I know people that might be better at property investing and some that would be much more suited to running a business than me.

However they seem to largely be held back by something.
I don't quite know why so few people give it a go. There's obviously an element of risk involved in both property investing and running a business, but you're not actually risking that much money, when you really look at it.

Note: My business isn't THAT successful yet and may still ultimately fail, but even if it does, I will be happy that I gave it a go. It's better trying and failing than wondering, in my opinion.

 

Fear a big one……and …..

Deficit …

knowledge
Confidence
Time
Income

 

Or we don't have any good business ideas.

 

I'm about to do this soon and I can understand the fear. I've had recruiters call me recently offering 30% over my current pay to do the same role I'm currently in. I was tempted to accept but then reminded myself that money wasn't the main factor in me wanting to run my own business.

But still, at a time when the job market is booming I'm leaving to start out in an uncertain industry, with almost a year of no to low income, in a high inflation environment, when interest rates are on the up.

 

I might open a hot dog stand. “Get your dogs from Bogans Dogans”

 

That’s why you got to do your own thing.

 

Get a dog into ya!

 

I don't think knowledge and time really count. Knowledge you can gain fairly quickly and at some point you just have to accept you don't know everything and jump in the deep end.

As for time, I started the business when my wife was 6 months pregnant with our second son and he has been a very difficult baby. So if I have the time, most people would be able to find it too.

Income can certainly be one, while I said the risks weren't that big, I still have over $100k in the business, money that I could lose.

I think fear and lack of confidence are big ones, but I just don't understand it, it's not THAT scary.

I don't think that's the issue. I'll even give you one business idea that I was considering and still think would work well: QLD smoke alarms.
You can get compliant smoke alarms from China for under $20 a pop and they take 5 minutes to install each. Get a handyman (or sparky for hardwired ones) and charge $99.95 a pop.
A lot of coordination and talking on the phone, but given the required compliance, I'm sure the right person could make a mint!
It's exactly what a forum member seems to be doing already (I came up with it independently).

 

I dont think time has anything to do with it. I have seen property for sale and bought it in minutes. I think the main reason is knowledge more, specificly ignorance I dont think fear has much to do with it. It is more percieved risk and lack of understanding of compounding and the POWER of TIME. Lack of confidence is also ****** in ignorance. Another reason is mindset, people arent prepared to accept some relative small loses neccssary to make huge long term gains. I dont believe income has much to do with it. It is not what you earn that counts . I know people on the dole who bought property, and high income earners who couldnt the difference was belief.

 

I agree that fear and lack of confidence are the main things stopping ppl from investing or starting a business or whatever else. They are happy doing a 9-5 for their entire lives and just live off the pension when the time comes.

You need to accept that most ppl are not made out to start a business or invest bigtime in RE. They don't have the drive, the mindset and the knowhow and even if they did many don't have the courage to get out of their comfort zone and try it. Yeah you do have a chance of losing quite a lot of money (I've lost over $300k now in various business ventures) but there opportunity to create real wealth as in general wealth not just a few hundred grand or even $1-2M.

Perfect example I was telling my GF today. One of my places the tenant just moved out. I've been working for the last 2 weeks crazy crazy hours as below.
- 6am-8am at the investment property doing renos
- 9am-5pm my daily office job.
- 6pm-9pm back at the investment property doing work.
- 10-midnight working on my online businesses, sending orders, buying inventory, doing bookkeeping etc....
- midnight - 5am sleep.

I told her go count how many ppl that would actually do this. She could not think of a single person. Why do I do it? Because I'm driven, I'm hungry to succeed and honestly I love getting paid and value adding to my properties.

Today is Friday night. I did not have a single beer or anything (even though I love to drink and party when time suites).

I will be up at 5am tomorrow which is a Saturday and repeat the above on a weekend for both Sat and Sunday (except all day at the property and not in the office.

I enjoy myself when I can and treat myself to insanely stupid things because of this work ethic to reward myself, but if you think about who in your life would work like above I think there would not be a single person in my life that would. I cant think of a single person.

That is why I have the life I have today and can do the things I can afford to do. Its my work ethic and drive that is second to none.

 

I believe it’s about priorities.
I’ll use me as an example… I prioritised setting myself up for success in my 20s. I worked and studied hard, made sacrifices etc.
Now that I am in my 30s… people may think that I have taken the foot off the peddle. Sure I can work 60 hour weeks, be frugal, and build more wealth… but I’m choosing lifestyle over money. I’ve set up things already, and quite content just plodding along. It’s all relative and depends on one’s perspective.

 

They are products of a system that says to be successful you must work hard at school, get a degree, and work for someone... preferably doing long hours to prove ones worth.

The elite of the elite will then be told to speculate on resi property and avoid the sharemarket at all costs.

 

I believe its a mindset thing above all.

So many talented and intelligent people do not have mindset to leave their 9 to 5 job or life of comfort. Most of the people does not want to leave safety of job but they do not realise that their safety can be gone any time by so many factors. But people do not know what they do not know. I know many people at work who have taken nice overseas holidays every year and when they are close to retirement, their house is far away from beign mortgage free. Most of people want instant gratification.

 

I think another main reason is that most people are affected too much by being judged by others and their opinions. They probably don’t want to upset family or friends or get held back by them by trying too hard. Or, the people they associate with hold them back in a subconscious way.

 

Are these people actually saying they want to start a business or invest in property?

 

I think the reason @spludgey is that for most people, a 9-5 in Australia is pretty darn good!

The pay, conditions and people you work with can be great!

Also, when you finish work....you finish work.

Running a business requires time risk and drive.

For most people a 9-5 is enough.

 

I agree with a lot of what has been said, but I also think herd mentality and taking the "safe" and standard path is a big driver too.

Whenever I talk about the next purchase or project, my wife will often ask me, partly tongue in cheek, "why can't we just be normal?!" None of our social circle are multi property investors. They are quite content working 9-5 and generally focussing most of their spending on PPOR, holidays and some expensive cars/toys etc. That's fine, no judgement.

I think it helps to be comfortable going it alone. I personally like the thought of going a different path, and am happy to sit a few standard deviations out on the long tail of the distribution! Mind you, this is one of the great things about property chat, it opens a window that shows other people are doing the same thing or more!

 

Running a business is definitely full on. It's really 24/7 and depending on your business model can often be high risk. I run a few businesses and the only reason I have time to do the things I enjoy is because I've now delegated many of the tasks out at the expense of a little less profit. Well worth it.

But it's always on your mind. I think the #1 reason which stops most people is fear of failing. And tbh for most people, that would be a protective mechanism likely to their benefit.