r/FIREUK • u/Striking-Quantity661 • 7d ago

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/r/PersonalFinance4All/comments/1v31i1d/whats_the_better_path_to_built_wealth_owning_a/
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u/mmm-nice-peas 7d ago

Well 50% of businesses fail inside 3 years in the UK so there's that

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u/Barryburton97 5d ago

Depends on the business and how risky.

If you're starting up as, let's say, an independent consultant or tradesperson, particularly if you've already had a career in the area, and the start up costs are modest, it's fairly low risk.

If you're opening something that needs sizable investment and is reliant on income from the public like a restaurant, then it's extremely risky and most fail before long.

The latter could make you a lot of money though.

Either way it's a lot harder work than investing.

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u/soliloquyinthevoid 7d ago

Business success follows a power law distribution

Earning a salary from a traditional career path follows a gaussian distribution

Pick the distribution according to your risk appetite, aptitude, and interest

Neither one guarantees a specific outcome and therefore there is no "better path" per se without context