It often comes with a pay raise, which is always good. It can represent a boost in responsibility, pushing your career forward.
But here’s a question few have asked—is a promotion the best way to boost your income?
Let’s do the math.
The average income boost from a raise is 3%.¹ If you earn $60,000 per year, then you can expect a raise to give you an annual boost of $1,800. That’s $150 per month.
Depending on your situation, that could make a huge difference for your financial picture. But it pales in comparison to other income-boosting strategies. For instance, changing jobs can boost your salary by 14.8%.² The average annual income boost from starting a business is $14,705.³
Suddenly, 3% doesn’t seem all that impressive!
Again, this isn’t to detract from getting a promotion. It’s a testament to your work ethic and grit.
But if your entire career arc hinges on landing one promotion after another, you may need a better strategy.
¹ “What to Expect from an Average Promotion Raise,” Indeed.com, Feb 22, 2021, https://www.indeed.com/career-advice/pay-salary/average-promotion-raise
² “Average Salary Increase When Changing Jobs Statistics ,” Chris Kolmar, Zippia, Dec 28, 2021, https://www.zippia.com/advice/average-salary-increase-when-changing-jobs/
³ “STUDY: Millions of Americans have a ‘side hustle’ to boost their incomes and pursue their passions,” Vista Newsroom, Aug 1, 2019, https://news.vistaprint.com/side-hustle-study-us
Hint—it’s not what you tell yourself.
What you tell yourself are excuses. They pop into your brain as thoughts, like…
“I just don’t have time.”
“Maybe in a few months.”
“Well, first I’ll have to make a business plan, and then I’ll need to find clients and then…”
Those thoughts are coming from somewhere. They come from your emotions. And emotions can be irrational… and very, very powerful.
Emotions cause the sense of overwhelm when you think about the long, hard, lonely hours.
They cause the hazy uncertainty of ditching your stable and comforting routines.
They cause that churning in your gut when you realize you could fail.
Emotions are stopping you from entrepreneurship. The reasons may come and go. But the feelings stay the same.
So what are the feelings that come up when you think about starting a business? Are they moving you towards a destiny that excites you? Or are they moving you away from pursuing your potential?
It starts with massive success. You pick up a hobby, new skill, or start a business, and you’re crushing it. Everything you touch just seems to work.
But it’s short lived.
Beginner’s luck dries up. It gets hard to nail even the basics. You feel like you’ve somehow gotten worse the harder you try. Effort no longer translates to results.
And worst of all, you’re not sure why. Something feels off, and you have no clue how to fix it.
Welcome to the Dip. This dark valley is when MOST quit. It’s the boneyard of business. It’s where you’re faced with a choice…
Quit. Or don’t quit. That’s it.
This is the premise of Seth Godin’s classic The Dip. It’s fast and uplifting, and every aspiring entrepreneur should read it.
Godin shares two critical ideas…
1. Winners quit all the time. The idea that only blind determination will carry you through is foolish. Instead, winning is about knowing when to quit.
2. The Dip creates scarcity, which can bring massive opportunity. The more people quit, the greater potential you have to dominate your industry.
His advice? DO NOT quit when you first encounter the Dip. In fact, you must embrace the Dip for what it is—the opportunity to become a leader. As your competitors collapse under the pressure, you’ll become one of the few options in your market. It’s a powerful—and potentially lucrative—position.
But that’s not all. The Dip can also be an opportunity to strategically quit. Why? Because it gives you critical information about whether you’re on the right path. Godin gives some criteria on how to tell if you should push through, or quit and invest in another opportunity…
1. You’re not positioned to become world-class. Almost all the rewards go to the greatest. It’s an exponential drop-off after. If you can’t become world-class in the business you’ve chosen, then it may be wise to quit now and invest in something else.
2. You’ve made no measurable progress. The Dip causes panic. It makes everything seem like complete and utter failure. But there are often signs of progress. You just can’t see them because the Dip has blinded you. If you’re just panicking, stay the course. Keep pushing. Payoff may be just a few steps ahead. But if you’ve hit a dead end, quit now. You’ll be glad you did instead of sinking more money and energy into a failing venture.
The Dip is something every entrepreneur wishes they had known about before they started. It could potentially have saved them time, energy, and heartache.
But now you know about it! And that means you can prepare. How? Here are a few ideas…
Get mentorship. Seasoned entrepreneurs have experienced the Dip before. Their insight and wisdom can help you decide if the Dip is worth fighting through. So before you start your business, seek a mentor. Shadow them, ask them questions, share your ups and downs with them. It may be the best investment you make!
Make a plan. The more detailed your plan to become an entrepreneur, the better prepared you’ll be for the Dip. Why? Because a plan short circuits panic. It gives you objective benchmarks for success that can help restore your confidence when progress seems slow.
Build mental toughness. It’s a fact—the Dip will test your fortitude. Tapping out too early could prevent you from reaching your true potential. The greater your mental toughness, the more likely you become to reach the rewards on the other side.
The Dip is a challenge that many entrepreneurs face. It’s when the work gets hard, the rewards dry up, but it’s when most of your competition collapses. The Dip won’t last forever. Once you push past this difficult phase, rewards are ripe for the taking if you can exploit it to your advantage!
And it’s no wonder why. You’re abandoning the familiar routines and regular paychecks of your 9-to-5 for something uncertain and unfamiliar.
You have to face a lot of fears.
There are the financial fears. Are you going to be able to pay your bills?
There’s the fear of overwhelm. Anything new can be daunting. And it seems like as an entrepreneur you’ll face challenges and obstacles that you’ve never faced before.
There’s the fear of failure. Not accomplishing what you set out to do is one of the worst feelings in the world. And entrepreneurship seems to expose you to fear of failure like nothing else.
The result? Entrepreneurship feels like a Pandora’s box that’s better left closed.
But here’s the truth—entrepreneurship doesn’t have to be scary. And if you make and follow a solid plan, it is possible to achieve personal and financial freedom. You can reach the entrepreneur lifestyle.
Again, it’s no wonder why. When you abandon the routines and paychecks of your 9-to-5, you face more than fear—you face unlimited freedom.
As an entrepreneur, you have the power to control your own time. You work whenever you want, not at your boss’s whim.
As an entrepreneur, you make your own decisions. No more watching your ideas bog down in red tape and bureaucracy.
As an entrepreneur, you pursue your own potential. You reap the rewards of your hard work, not your boss.
In short, entrepreneurship gives you the power to just live your life on your terms, not someone else’s.
It’s like Cicero once said…
“What then is freedom? The power to live as one wishes.”
All that’s standing between you and the power to live as you wish is fear. And with the right planning, system, and mentorship, that fear can be overcome.
That’s why I’m a leader with e2E. Because that’s my mission—to free employees from fear so they can become entrepreneurs.
It’s no secret that there’s an uprising among employees. It’s called the Great Resignation. The cause? The fact that workers…
-Want to earn more money
-Feel burned out and unsupported
-Lack leadership and mentorship¹
And so they’ve quit in the millions.
Can you relate to that? Do you feel like your boss doesn’t really care about your well-being or career? Is your gut telling you that your talents could be earning you more?
Perhaps you’ve worked hard for a raise, only to get passed over in favor of someone less qualified.
Or maybe you’ve explored new opportunities, only to find employers are requiring outrageous qualifications for little pay.
Plan A was getting a promotion. Plan B was getting a new job. And now, both seem impossible.
So what’s next? “Plan E”, the path to entrepreneurship.
Your Plan E leads to the entrepreneur lifestyle—owning your day, working when you want, collaborating with whomever you like.
It’s your escape plan for making a smooth transition from where you are now to the business and lifestyle you want. This plan gives you an easier way by lowering risks and removing obstacles. And most importantly, your ‘Plan E’ can put you in the helping hands of experienced mentors who can guide you on your journey.
Make no mistake—there will always be stumbling blocks along the road to building a business.
But a solid plan can keep you moving forward in spite of those hiccups so you’re not forced to retreat back to employment. It’s the difference between hitting a dead end or hitting the mark.
Any successful “Plan E” must assess…
The Risks that can end an entrepreneur’s dreams
The Reality that the most rewarding success will also be the most painful to earn
The Mindset that you’re either growing or dying
The Answers about which industry and market you’ll serve—and how.
The People you go into business with who are critical to success
The Options of going into business spare-time, part-time, or full-time
The “E-Factor” of becoming a digitally-enabled entrepreneur
You don’t need permission. Once you’ve made your “Plan E”, you’re free to begin your mission. You’re ready to make the move.
If you have any questions about entrepreneurship, let me know. As part of the e2E movement, it’d be my privilege to help guide you from employee to entrepreneur.
¹ “The Real Reasons Workers Are Leaving in Droves? (Burnout Is on the List, but Not at the Top)” Melissa Angell, Inc., https://www.inc.com/melissa-angell/great-resignation-burnout-workers-upskilling-career-development.html