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Earning pots of money (here’s hoping)

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With many trades and professions, your income always has a pre-defined upper limit, no matter how hard you work — teachers, carpenters or nurses on the regular payroll, for example, are limited in the amount of pay they can get. However, by setting up your own business, whether you’re tutoring private students, building house extensions or doing private home nursing, your earning potential immediately increases.

Statistics that compare the taxable income of self-employed individuals with those of employees working in similar industries or professions are hard to come by. However, if you start up a low-risk kind of business — home-tutoring, for example — the financial benefits of becoming self-employed are small but relatively guaranteed. On the other hand, if you start up a high-risk business — say, launching a new invention — you could end up losing everything you have. Or, you could just wind up a millionaire.

Small Business for Dummies

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