Based on the history of the last few centuries and hundreds of interviews with entrepreneurs, Taylor Pearson, in his book The End of Jobs, shows why being an entrepreneur is safer and more profitable than ever.
He explains why so many graduates have difficulty finding work, and why entrepreneurship in our globalized world gives us more meaning and freedom than regular work from 9 to 5.
Entrepreneur, marketer, and consultant Taylor Pearson advise authors, entrepreneurs, and executives on how to expand, improve, and promote their business.
This book is available as:
Understand Why You Need to Become an Entrepreneur Right Now
From childhood, we were told that we need to get an education in order to find a good job later. So it is considered to this day. But is this true in practice? Given that now more than ever before, the number of people has higher education, and the whole world is just a few keystrokes from us, it is probably time to review this belief.
Something has really changed. In our globalized modern world, work is no longer the right path to financial prosperity. Apparently, from outsourcing to unemployed college graduates, we are in a crisis thanks to which we can see the limits of a decaying system and the birth of a new one: a paradigm shift and the end of the work in the form in which we understand it now.
You will also learn:
- how the English king Henry VIII made capital more important than land;
- why great entrepreneurs think like poker players; and
- how the US population growth increased unemployment.
Each System Has a Limit That Cannot Be Exceeded.
There are many variables that determine how society progresses. One of these variables that you need to pay attention to is the limit of the system in which we live and work. Software entrepreneur Eli Goldratt came up with the theory of constraints in the 1980s.
According to Goldratt, every system that has a goal also has a limit: the part of the system that limits its growth. For example, if your factory has two assembly lines that produce 100 units of product, and one that produces only 50, this third line will be the limit.
To progress, we must work to the limit. For example, if you have an excellent product, but no one knows about it, you will not increase sales by improving this product. Here the limit that needs to be improved is your marketing strategy.
According to the work of the thinker Ron Davidson, the last three major changes in the western economy occurred when the limits changed.
In fourteenth-century England, the agricultural economy was land-based, and since the lion’s share of the land belonged to the Catholic Church, it was the church that controlled the economy. Thus, the land was the limit until the sixteenth century, when Henry VIII appointed himself head of the Church of England and abolished the control of Rome over it.
Then, at the dawn of the industrial era in the 1700s, bankers became more powerful than kings, shifting the limit from land to capital and forcing the landowner and Prussian King Frederick William III to ask bankers for a loan to finance their wars.
Later, in the 1900s, we moved from a capital-based economy to a knowledge economy. Technology-driven knowledge has become the new frontier, and companies like IBM have become extremely powerful. This became apparent in 1975, when IBM successfully issued billions of dollars of bonds, despite the refusal to cooperate with Morgan Stanley bankers.
Since the early 2000s, we have seen a weakening knowledge economy, which is being replaced by a booming business economy. Why this happens, you can read on.
The Baby Boomer Generation Needed Letters and Diplomas to Succeed, but Today a Degree Does Not Guarantee Financial Wealth
It is becoming increasingly difficult to find work, and believe it or not, those who are now over fifty are to blame for this.
After the Second World War, the economic boom brought the knowledge economy to the limit, and it began to transform into a new system.
People born in the United States in the first two decades after World War II – the baby boomer generation – lived in a period of economic prosperity that provided many career opportunities. According to the US Census Bureau, between 1948 and 2000, the number of jobs grew 1.7 times faster than the population.
Such growth meant that the baby boomers just needed to get a higher education, which gave them the authority to take a good position. The following generations followed suit, believing that everything would remain the same. But there was no guarantee that the economy would remain in one place. She didn’t stay.
In fact, since 2000, the number of people has increased 2.4 times faster than the number of vacancies in the labor market. This explains why there are so many well-educated but unemployed university graduates. In the United States, more than half of recent college graduates are either unemployed or work in jobs that do not require special education. Therefore, it is obvious that knowledge in the form of authority is no longer the limit. We have reached the limit of work from 9 to 17, and now we are witnessing the beginning of the era of entrepreneurial activity.
It is interesting that the only type of jobs, the number of which has increased since 1980, is non-routine cognitive work: creative, unpredictable, and not related to the daily execution of the same task.
Our economy is growing through creativity and innovation. In other words, creativity is a new limit, and new players are entrepreneurs creating a business and generating innovative ideas. The Airbnb home rental site is a great example: this business began with placing an apartment on Craigslist, an external resource with a list of apartments, and this became his creative way to market as an independent business.
Today, Work Requiring Knowledge Can Be Automated or Performed by Freelance Employees, and It Can Actually Be Beneficial
In addition to the lack of jobs in the United States, there is another reason why finding work has become so difficult: the possibility of outsourcing.
Modern communication technologies and an increase in global education have freed us from the need to sit in offices, while the number of people with higher education has increased dramatically, which is why education as such has become much less valuable. In fact, the number of college graduates in the world has increased from 90 million in 2000 to 130 million in 2010. But what does it mean? Add to this the technology of video calls on Skype, and it becomes possible to hire a qualified employee from anywhere in the world. This also means that companies can hire workers from countries with lower wage expectations.
An English-speaking web designer in the Philippines, for example, can be hired for an annual salary of between $ 700 and $ 1,400. A shocking difference with the expected annual salary of a web designer in the US of $ 82,000.
Machines are increasingly replacing people in the industry, especially for factory workers, whose work is currently being done with hardware and software. But machines go beyond factory tasks, they can perform knowledge-based work. Take Eventbrite, an online ticketing company, as an example: booking and paying for them is fully software-based.
So what can be done? You need not wait until you are replaced by programs, but become their owner. Thanks to modern technology, doing business has become affordable for more people. An entrepreneur can run a small company, hiring employees around the world for relatively low salaries. Such startups are often called micromultinational.
Jesse Lawler runs the Vietnamese company Evil Genius Technologies and employs workers from England, India, the Philippines, and other countries. Lawler’s sales and service staff live in the United States and programmers in Vietnam.
Thus, he significantly reduces his expenses: living expenses in the USA alone are such that it would be impossible for Lawler to hire more than two developers in the USA.
Modern Technology Provides Entrepreneurs With an Abundance of Opportunities.
Today, being an entrepreneur is really more profitable and safer than having a job.
From childhood, we were hammered into our heads, which is very important to have a permanent job. But what if we were misled?
In the modern world, having a permanent job exposes us to an insidious risk, over which we are not in control. In the current state of the economy, constant income may disappear at any moment, and not the fact that there is a way to restore it.
A regular salary gives a false sense of security. In fact, you can easily be replaced by a talented employee in India who is ready to work for less money. This is a harsh reality. And if you simply followed orders throughout your career, you will not be able to find new opportunities. Let’s call it the turkey problem : you, like a turkey, get food every day, but one day they’ll just chop off your head.
Entrepreneurs do not have this problem, because they directly deal with visible risks. They may not receive immediate profits, but they acquire skills and create systems that they can change if they do not bring the desired results.
In other words, they have unlimited control and an unlimited number of variables, and the opportunity for growth is huge. Most of the entrepreneurs interviewed by the author would find annual growth of 20 percent disappointing.
Like poker players, entrepreneurs understand the concept of expected benefits. This is the average of a series of repetitions of a random variable.
Let’s say you win back your hand in poker, and to see the last card will cost you $ 1,000. You have a 20 percent chance of winning $ 20,000 for the whole hand. And you’re putting out $ 1,000 for the expected gain of 4,000, which is 20 percent of 20,000. If you make such a bet a sufficient number of times, you are guaranteed to go to the top. Therefore, it is not surprising that many poker players eventually become entrepreneurs.
Modern Technology Has Made Investing in Entrepreneurship Easier and Safer Than Ever.
Business is for very smart people with a special type of thinking and a lot of cash, right? In fact, thanks to modern technology, everyone has the opportunity to do anything: from designing furniture to publishing a novel. Even the creator of Apple, Steve Jobs said that the entrepreneur does not have to be smarter than the average person.
First of all, the business has changed, of course, the Internet. And one of the most important changes he made was a sharp decrease in production costs.
The tools required to create a product are now more accessible than ever before. Take at least the software as a service business model, that is, businesses such as Adobe Creative Cloud that sell subscription-based software. In the past, it was necessary to invest in expensive equipment and sign long-term contracts, but now quality services can be obtained on a monthly basis. Thus, instead of spending hundreds of dollars on accounting software, you can pay $ 9 a month for reporting programs like Xero.
The Internet has also reduced distribution costs. In addition to accessing manufacturers in countries with lower costs, you can also directly sell products to customers. The author, for example, worked in the business of manufacturing and selling portable bars. They were manufactured in China and sold directly to consumers so that costs were reduced by about 25 percent, and it was also possible to improve product quality.
The Internet is also constantly creating new markets, in large part because the location is currently irrelevant. For example, in the past, you would have turned to a law firm just because it is located next to the office. You can now use a website like UpCounsel to find an authorized lawyer who specializes in your needs, regardless of your location.
If you are an entrepreneur, it’s much easier for you to serve niche markets online. For example, Firegang Dental Marketing offers digital marketing services exclusively to the niche of dentists who want to attract new customers.
Unlike Work, Entrepreneurship is Not Forced and Allows You to Work on What Matters to You.
Prehistoric hunter-gatherers did not work the way we do now: they worked to survive. But that changed with the start of the agricultural revolution. After her, work became a duty.
With the advent of agricultural communities, we began to work to obtain products that could be stored or sold. Cultivating the land was a difficult, constant work, the goal of which was to accumulate wealth rather than survival.
After the industrial revolution, factory workers began to consider work and wages as a means to improve the quality of life. Thus, they pledged to perform routine factory tasks, since, in their opinion, this led them to a better life.
This idea probably seems familiar to you. And this is because we follow it today.
However, today you can find more meaningful work. But is meaning really more important to us than money?
Economist Dan Ariely conducted a psychological study in India to find out how powerful money is.
In the Aryli study, a group of workers was confronted with a difficult task, which, according to the formula, was impossible to solve, in essence, as well as business activity. One of the tasks, for example, was decoding the anagram. The first subgroup was offered a daily salary for solving the problem, the second – a two-week salary, and the third – a five-month salary. Surprisingly, the greater the reward, the less effective it was. And this is because the meaning of work motivates us more than monetary incentives.
We saw the same thing in 2006 when Mark Zuckerberg was offered a billion for Facebook. But Zuckerberg did not even allow the possibility of selling his project. After all, his work meant too much to him. In 2015, Facebook was already worth 230 billion. Zuckerberg simply continued to do what he loved and ultimately made incredible profits.
This is all evidence that creating a fun business is much more sustainable than traditionally thought.
Step Method as a Way to Become an Entrepreneur and Start Your Own Business
Being an entrepreneur is not at all easy, but not as dangerous as it seems. Rob Walling, the head of three development companies, based on his experience, created a useful entrepreneurial method, known as stepwise.
The first step includes the creation and launch of one product, its sale for a one-time fee and the use of only one marketing channel.
So, having simplified everything, you will learn some business fundamentals without experiencing the pressure of a highly competitive environment, learn how to create and sell a product, how to organize a network, and how to hire and manage a small number of employees.
The next step is to launch a number of products sufficient to be able to quit your job. That’s what Walling did before becoming a programming consultant. In 2005, he launched several products and acquired several voice input programs that are under development. But then he earned only a few hundred dollars a month.
At this stage, you should focus on getting enough money to cover the salary you received at work. It will also allow you to gain business experience, a network of entrepreneurs and a stable workforce.
Walling was able to learn marketing, relying on SEO, like previous software owners. He then used the consulting capital and SEO skills to acquire and run an online bath towel store.
After you have launched several products and gained some experience, it is time to expand your business. For example, you can run larger products or create a membership site. After buying a website selling towels, Walling increased the company’s profit from zero to $ 2,500 a month.
It is important to remember that no college will turn you into an entrepreneur. Education used to be a ticket to financial stability, but to gain the skills necessary for your work to make sense and generate income, you need practical experience.
The promise of a stable job after college from the beginning of the century is doubtful. Our society is now undergoing a transition to an entrepreneurial economy. Therefore, right now it is time to take advantage of technology and create meaningful work for yourself, which includes risk and creativity and offers more money and freedom than the tradition of work from 9 to 17, which is a thing of the past.
Make decisions as a billionaire.
Diversification is crucial for investing, right?
If you want real profit, take a look at the strategy of Warren Buffett and Charlie Munger of the three hundred billionths holding company Berkshire Hathaway.
Instead of diversifying, trading, or trying to defeat the market year after year, these billionaires focused on a period of 40 years. W
What is the result?
They received 50 billion over 50 years, making only four to five investments.
Why You Should Read “The End of Jobs”
- To find an alternative to your 9 to 5 work.
- To find the job you really enjoy.
- To grow your business and prosper
This book is available as: