The Surprising Benefits of Starting Your Own Business

Starting a business can transform your life in ways you never imagined, especially when you take the leap and break free from the traditional employment model. Over the past eight years, my life has been fundamentally changed, and the results have far surpassed even the most optimistic expectations.

Transition from Employment to Entrepreneurship

My journey began in early 2010 when I was the General Manager of a 350-room resort with two championship golf courses in New Jersey. After a successful but demanding role, I made the decision to break free from the conventional employment model that relied on others' decisions. Together with my wife, we took a substantial risk and used almost all of our retirement savings to buy our own business, a choice that required a return to the West Coast.

This was a significant leap, especially being 52 years old at the time. We were living through the most severe financial downturn in my lifetime, having lost a considerable portion of our life savings in the stock market and the value of our home in New Jersey. Our initial investment was only about $425K, keeping $100K in cash as a reserve.

The Business and Leadership

In August 2010, we purchased a hotel with the seller financing $700K and a down payment of $325K from our IRAs. The process was complex, but necessary to ensure we had the financial flexibility our new venture demanded. We were fortunate to have bought the hotel at an opportune time, which has only grown more apparent with the passage of eight years.

Our transformation from earning around $200K per year to $65K in the first year was a significant adjustment. However, we tightened our belt and focused on the long-term potential of treating our employees well. Our new business model allowed us to significantly raise salaries and provide better benefits. One of the most impactful changes was giving our front desk agents the authority to resolve guest issues to the best of their determination, which led to a dramatically better guest experience.

Results and Impact

Eight years later, we are among the top 1 earning businesses in the US. We have managed to keep all of our original employees, with nine of the nine remaining until today. We selectively made two retirements, but maintained three employees who have continued to thrive in their roles. This is a testament to the positive impact our approach has had on both the business and our team.

Our employees earn significantly more than they would in other hotels, with one of our most senior front desk agents making nearly $40K last year. This is a remarkable improvement over the typical $24-26K they would have earned at other big hotels.

Freedom and Autonomy

Perhaps the most astonishing benefit of starting our own business is the freedom and autonomy it affords. We are not constrained by the rigid structures and limitations that often come with employment. We can run our business exactly as we believe it should be run, making changes and adjustments based on our vision and personal values.

For instance, our unwavering commitment to customer satisfaction means that in the face of a problem, our employees have the authority to do whatever it takes to make the guest happy. This could include comping an entire stay, a decision that feels revolutionary in our industry. Our only requirement is that our employees think through what they would reasonably do in the guest's shoes. This freedom has led to a more engaged and dedicated workforce and a significantly better business outcome.

My work schedule now consists of working only three days a week for around six hours each day. This lifestyle adjustment has dramatically enhanced the quality of my life, providing time for personal pursuits and relaxation, something I never imagined possible in my business career.

Advice for Future Entrepreneurs

For those with aspirations to start their own business, my advice is to do so while you're young. At my age, the risks are far greater, and if everything falls apart, it's much harder to recover. Starting a business in your youth provides a safety net and time to make up for potential losses. If it doesn't work out, you still have a good chance of finding another path to success.

In summary, starting your own business can be an incredibly fulfilling and rewarding endeavor, offering unparalleled freedom and opportunities for personal and professional growth. The joy and satisfaction of seeing your vision come to life and the positive impact on your employees and bottom line can surpass your wildest expectations.