Pros & Cons of Entrepreneurship: Is It Right for You?

Pros & Cons of Entrepreneurship: Is It Right for You?

3 min read
Marcus Maloney

Marcus Maloney is a value investor and portfolio holder of residential and commercial units. Marcus has been named the “Equity King” for his impressive ability to find real estate opportunities with massive amounts of equity.

Experience
Marcus, a high school dropout, went from G.E.D. to M.B.A. Although his education has a major impact on his investment philosophy, the real impact came from his upbringing.

Marcus thrives on completing successful transactions. As a young kid, his parents and grandparents faced many challenges; as a result, it made him think of ways he could help. His mother and grandmother were avid investors—not in the market but in people. Marcus was a recipient of those investments. And his early years were hard work growing up on a farm.

Marcus was a strategist at an early age. To relieve the burden of his family buying him clothes when it was time to return to school, he decided to make a small investment that paid big dividends. Marcus decided to purchase a small piglet at the beginning of summer, feed it until it became fat, and then sell it to a local farmers’ auction before the school year started. This was one of his first transactions and the beginning of his adventure of finding equity in every opportunity.

Marcus’ hard work continues today: He has completed over $3.3 million in wholesale transactions. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. Although wholesaling provides great money, he saw the opportunity to buy some of the deals he found and convert them into cash flowing rentals.

Marcus currently holds seven rentals, two of which are commercial units. He’s also done the unimaginable and purchased a school, which was converted to a daycare center. Again, he turns what is a marginal profit into a significant equity position. He leverages the equity by using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy to increase his portfolio without any money out of pocket.

Marcus has been featured on numerous podcasts, such as the Louisville Gal Podcast, the Best Real Estate Investing Advice Ever podcast, FlippingJunkie, and many others. He’s currently a featured blogger for BiggerPockets, the largest community of real estate investors in the world.

Along with completing transactions and working to build his portfolio, he provides mentorship to aspiring investors. This is done through one-on-one interactions and through his successful YouTube channel and blog.

Marcus does utilize his M.B.A. for more than real estate. As a consultant for a successful non-profit institution south of Chicago, he uses his expertise in the development of human capital. His philanthropic efforts help existing stakeholders develop in their capacity to serve those in need of assistance.

Education
Marcus completed his M.B.A. in 2011 from Olivet Nazarene University.

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I can assume since you’re reading this post that you’re interested in being an entrepreneur. But is it right for you?

Entrepreneurship is one of the sexiest words being thrown around in many circles today. Everyone thinks they have the next product or service that will revolutionize how we do things.

There are tons of posts on social media in this vein. People are doing big things, they’re grinding—or so they think. For some, this is true; for others, they are simply in love with the idea of being a self-sufficient entrepreneur.

I want to explore some of the pros and cons of entrepreneurship to dispel some of the fallacies.

What Exactly Is an Entrepreneur?

Webster’s dictionary defines entrepreneur as “one who organizes, manages, and assumes the risks of a business or enterprise.”

At its essence, it’s a person who starts a business. It’s someone who is willing to risk loss in order to make money. This individual should also be a leader, who is innovative, tenacious, and possesses farsightedness.

The process of becoming an entrepreneur begins with taking on risk. You have to be willing to embrace this and move beyond what everyone is telling you—and beyond everything you might be telling yourself!

Being an entrepreneur has its perks, to be sure, but there are many downfalls, as well. So, let’s take a closer look at some of the pros and cons.

(I must disclose that I am slightly biased because I have always worked for myself or my family in some capacity—aside from menial jobs I had during my teen years.)

Related: 5 Transformative Productivity Books Every Entrepreneur Should Read [Video]

entrepreneur-life

Why is Entrepreneurship so Enticing?

I believe it’s the glitz and glamour of working on your own terms that’s super enticing. It’s also the allure of being able to work when you want.

It’s being able to choose what you prioritize and focus on based on what you believe is important. And let’s be honest, it’s being your own boss.

A Realistic View of Entrepreneurship

At an early age, I witnessed the sacrifices that come with being an entrepreneur. Before I could even spell the “e” word, I watched my mom sacrifice.

She left a well-paying career as a nurse supervisor to pursue her dream. This change was mind-boggling to so many people.

As an adult, I asked what made her take the risk. She told me it was more risky to continue working without being in control of her destiny than it was to leave.

But was that transition easy? Absolutely not. It was a burden we all had to bear, and it was a lifestyle change.

The sacrifice was real, and my dad, brother, and I did not adjust very well.

Things changed. For example, we went from getting groceries at Jewel and Dominick’s to Aldi and food pantries. We got old bread from the bakery at grocery stores.

I tell this story because this was reality—even though things did eventually work out for us.

Related: 4 Critical Life Lessons from a Serial Real Estate Entrepreneur

how-to-become-an-entrepreneur

Pros & Cons of Entrepreneurship

From my story above, we know that entrepreneurship is not all lipstick and daisies. There are truly some sacrifices that must be made.

However, with tenacity, dedication, and perseverance, you can reap the rewards of those earlier sacrifices.

Pros

  • Time Freedom
  • Family Freedom
  • Tax Benefits (for business owners)
  • Life Balance
  • Free Market (free earner, no caps on income)
  • Limitless Creativity

Cons

  • Inconsistent Income
  • Time Management (not a 9 to 5)
  • Increased Isolation (less engagement with others at times)
  • Must Be Multifaceted (cannot be one dimensional)
  • Lack of Employment Benefits

I mention all of these to call attention to the trade-offs when starting out as an entrepreneur. It’s not for everyone, and please think of your family when making this decision.

The great thing about real estate is that there are options. You can be a passive investor and continue to maintain your W2 employment, or you can be full time and push yourself to your greatness.

The choice is yours.

Do you intend to fully ditch your W2 job? Are you willing to take on all the risks and put in all the hard work associated with being an entrepreneur? 

Tell me why or why not in a comment!