TBL Episode 56: How the dream of entrepreneurship can turn into a nightmare

Starting a business has some inherent risks that I think most entrepreneurs are aware of.  You risk investing your own money in a business that doesn't end up making a profit. With online businesses, the initial investment to get them off the ground is so low, that the financial loss of a failed business isn't that ground shaking. Especially when you compare it to the capital needed to open restaurants, retail stores, and other more classic brick-and-mortar businesses. These businesses usually involve investing your life savings while also taking out thousands of dollars in loans. Ultimately, if your online business doesn't work out, you lose some of your savings and then go back to working for someone else. It's a crummy situation, but it's rarely a devastating situation.  What most online entrepreneurs don't realize is that the real risk comes when you start to make money.  It seems counterintuitive, right? But the more financially successful your online business becomes, the more it can turn into a nightmare if you aren't careful.  That's why in this episode, we discuss: Why the more successful your business becomes, the more risk you take on Why not understanding your taxes as a business owner can turn your business into a nightmare Why every entrepreneur should be working with an accountant How our bookkeeping service helps our clients stay out of trouble with the IRS Why understanding your finances becomes more crucial as you make more money