Pete: [00:00:00] Good morning, Nat.
Nat: Good morning, pate. Is it breakfast time?
Pete: Woo. I'm pumped up today. Okay. Pumped up. All right. So we did that podcast on ai. About jobs being eliminated. Right. And I can't tell you how much feedback it got from people going, holy cow, that was really well done. So we don't get that often, but you know, but they really like the topic.
And I thought today we'd take that a step further, right? So we know that. Corporate executives are exposed. In today's world, especially if you're in your fifties, there's age discrimination. Technology's gonna, it's gonna impact. Yeah. Right. So we need to be creating career and income security, and we've talked about in the past about a side business doing that.
So I thought we'd talk about the 10 reasons why senior level corporate executives should consider creating career and income security with the side business. Sound good? I like it. Yeah. No, I like [00:01:00] it. Woo. All right, let's go then. So what do you think the first reason why a corporate executive should look at setting up aside the bus business?
Nat: I always think one of the best reasons is to diversify your income, because I hate the idea of having all my eggs in one basket.
Pete: Right. And when you, when you have that significant income from being a senior level executive, if something happens, you're, you're at financial risk. Yeah. Not fun. Yeah, right. So you, you got too much dependency.
So if you can diversify your assets and income, that's a pretty good thing. What would be a second reason why an executive would look at setting up a side side business?
Nat: I think also having some sort of safety net, you know, with the economy, you know, you never know what's gonna go on. So if, you know there's uncertainties or things go start to slow up, it's nice to have a, a side business so you can be diversified a little bit.
Pete: Yeah, well that's kinda what we talked about before, is that with the economic [00:02:00] downturns, corporate downsizing, the impact of AI disruptions, whether it's covid 19, there's impact on corporate positions or jobs and stuff like that. So if they can have a side business, they're mitigating some of those uncertainties or reducing their, their risk associated with it.
What would be a, a third reason why executive would consider investing in a side business?
Nat: I think building wealth or leaving a legacy, like, you know, basically it's kind of like almost having real estate when you have a business. I mean, you're building something that's an asset that's going to continue to grow.
So I think it's always a good strategy to do
Pete: that. Yeah. And with a corporate job, it's not an asset, right? Yeah. So you use the term, you know, you're renting your income with a business, you're building something that, that you hope that can fuel your retirement, but also something that you can hand off to your, your kids, right?
So there's, there's something special about a business where you've created that asset and, [00:03:00] and building your wealth. Cuz we, you and I both know that a good portion of the wealthy people in the United States, it's been created by being a business owner. Definitely. All right. What would be another example of why an executive should consider investing in services?
Like a lot of the
Nat: Corporate guys I work with, you know, they've really made a big impact at their organizations and they feel like it's time to do something for themselves. So it's kind of like to further develop their entrepreneur skills because they've. A lot of times they're actually have been somewhat entrepreneurial in corporate but this allows them to continue to kind of grow and, and, you know, strengthen those skills for themselves.
Pete: Yeah, I think it, when you work for corporations, you get a lot of great experience, right? So, right. That's, that's one. And you get to run different things that you maybe wouldn't do if you were in a small business. And then you also from [00:04:00] the standpoint have a little bit of that entrepreneur spirit in you and I.
And I think a little bit about me. I ran very large businesses when I was in the corporate world, but I always had that entrepreneur spirit. So if you can invest in a side business, you start cultivating that entrepreneur skills that you have in you by leveraging your. Acumen that you gain in the corporate world and tying it to a franchise business or, or, or any kind of side business.
Totally.
Nat: The, yeah, the I think the other thing is just, it's just a natural continuation of, you know, professional growth is to, you know, you're doing it for someone else and then to do it for yourself. So I think that, that, to me, that kind of makes sense too. Well, it
Pete: broadens your knowledge, it keeps you abreast of what's going on, stuff like that.
So it keeps you competitive too. If, if you are a corporate executive, but you've got a side business, you're, that's a whole nother skills that just separates you from everybody else from that standpoint. Yeah. Yeah, for sure. What would be a, like a, another reason, a sixth reason [00:05:00] maybe, too? I, yeah,
Nat: so I always feel like franchising is hyper-local.
So I think it's a good opportunity. You know, a lot of guys I work with, you know, they have been traveling never home and all that, but I think it's franchising can be a really good opportunity just to put down some roots locally with networking and building relationships and be really involved at community level.
Pete: I think that's right. I, I think the idea is that when you're a corporate executive and you're on planes all the time, it's hard to be engaged in the community. And as a business owner, it's, it's fun to sponsor stuff and be engaged with other business owners and stuff like that. So I think there is a whole another level of networking, relationship building when you're an entrepreneur in a community.
Yeah. What about another one? This one I think is one of my favorite ones. So what would be, what would be another
Nat: one? I think if you're hyperlocal then I think you probably have more flexibility and more work life balance. Like for myself as an [00:06:00] example, I have a eight minute walk to my office. Not nine
Pete: minutes, eight minutes,
Nat: exactly.
So let's, let's just work life balance. You know, you have more control over your schedule, what you wanna do.
Pete: Yeah, I think that, and that's so important and, and you know, when you have a business, you have to work hard, right? We've, we've talked about that before, but it can be on your terms, right? So if you want to go to your, your son's volleyball game, you can, but maybe that means you're getting into the office at.
Five 30 in the morning and you're, or you're working late or you're doing something, but it can be on your terms. And so if you can have that work-life balance, that flexibility, that's,
Nat: that's huge.
Totally. I think it, you can almost become a new person over time where you kind of get out of that corporate rut and start to. You know, it's like you've become a butterfly. Let's, Pete,
Pete: you're a butterfly. You were just, I don't know if I'm following this butterfly thing. So you [00:07:00] were, you were a
Nat: caterpillar and now you're a butterfly.
Pete: All right. All right. I, I don't know if we got time to go deep into that one. All right. That's great. You got me on that one. All right. Will be another, another. Well,
Nat: along with the butterfly idea, it's just, it gives you time to be a little bit more creative. Follow your passions your interest. So I think there's just, it is a nice, it's a nice change of pace for, for people, for corporate
Pete: execs.
You kinda could get beaten down in the corporate world. So if you have something that you're a little bit more passionate about, it's you can leverage some creativity that certainly can be. All right. What would be another reason why a corporate executive should invest in a side business?
Nat: You know, one of my favorites is just building a legacy for your family and making an impact.
So, you know, the, your kids who knows, like, you know, kids are going to college and coming back with degrees, but, you know, who knows what they'll really end up doing? Maybe they'll wanna be involved in the business or maybe if you can build it [00:08:00] big enough, you know, it just gives 'em financial independence when you're, when you're older.
Yeah. Or not here anymore, but who wants to talk about that?
Pete: Yeah. Don't, don't need to talk about that front to point. So, no, I think that's right. Is that, We, what we create is our legacy going forward and whether our kids decide to be involved in it or not. I, you know, I kind of hope from my standpoint that, that some way, somehow they will be, but you are making an impact and it is, it is a legacy and it can be financial as well as just reputation, right?
Yeah. You think about those businesses that are handed down from some point. Alright. What would be the last reason why an executive should invest in the side business?
Nat: I think it just helps contribute to your retirement. You know, we've talked about this quite a few times, but just, you know, I don't know what the number is, but if you, even if your business just pulled like a hundred thousand a year of net income, it's like how much would you have to have in, in invested in the market to, to equal [00:09:00] that?
And I mean, it's probably, I guess it would be 2 million at 5%. But you know, it's just as good for retirement paying an exit strategy. You always have an asset that you can sell down the road and gives you more options.
Pete: Yeah, there's no question about it. I mean, it's a, a path to eventually leave the corporate world or set up your retirement.
We talked about that during our retirement roulette. Yes. Right. Or or podcast where you know, it is, it is about setting up that income cuz you're, if you have that side income going into retirement, that is huge. That significantly changes the trajectory of your retirement. Yeah. In terms of fund money, I always like to say, go be able to do the travel and do other
things.
Nat: Yeah, the I always say don't retire unless you have the time and money or you know, you can afford to do it. So if you have a side side business that's going well, it gives you something to do and also gives you income. And if you structure it right with a franchise, you know, hopefully you can be semi absentee at some point and travel and do what you wanna do.
[00:10:00] Yeah.
Pete: So you know, as you think about these uncertain times, really corporate executives need to create career and income security. And a side business is one way to do that. And, and certainly as we talk about it, there's lots of great reasons why they should consider investing in a side business. So let's go look for a side business.
Nat: Do you know anybody that knows anything about side businesses? Pete?
Pete: I might just know somebody. Yes, I'm always here. Tell people, find a side business. All right, have an awesome day.