“I lottery and according to CNBC Make It,


“I just won a 1.5 Billion dollar lottery, am I a billionaire?”… NO. If a person happen to be the winner of a 1.5 billion dollar lottery and assuming they took the lump sum (taking all the money at once) then they would get paid about $930 million. The person would have to pay around 39.6% of the money to federal government right away leaving them with $561.7 million. On top of that, they would have to pay state taxes (unless you lived in California, Florida and Tennessee) which would take out another 5-10% depending on the state. That would be around $533.6-$505.5 million dollars. That’s around 33% of you original $1.5 billion lottery and according to CNBC Make It, “Lottery winners are more likely to declare bankruptcy within three to five years”(Hess).  Not only that, but according to the article, “Why do 70 percent of lottery winners end up bankrupt?” it says, “In fact, about 70 percent of people who win a lottery or get a big windfall actually end up broke in a few years” (Murray). This shows that it may seem that the person got millions and do not need to work ever again, however, this is not true because the money won will get taxed every year and the person will live a lavish life and the daily cost of living will go up. It’s not one’s fault everyone wants to be rich, own supercars, and have a big house, but they don’t know how to be rich or where to start other than playing the lottery. People would spend their time criticizing the ones that are rich by calling them lucky or extremely smart instead of thinking about other ways they could become wealthy. Nowadays, people desire having a great job such as being a manager or having a high position in a company, but they never think of being an owner of one company. When a person has the mentality of working for others, then they can’t advance from it and can’t become richer than the person who is paying. Working for someone means getting paid a fraction of the money compared to the person who is paying employees. There’s no way becoming rich is possible by staying in this position. Everyone wants to be the top dog and have everything they want and want the best of the best no matter the cost, but it would be close to impossible to be able to get the best of the best unless the the individual make money like the best. If an individual ever wants to be truly wealthy (have hundreds of millions) that person has to own a business/company and build upon it. Just like how all the other billionaires in the world have started. Lit Review: Wealth?Wealth, the word that determines if one is powerful or not. Back in the day when kings and queens ruled the world, wealth was considered as power. Wealth meant power and if a person didn’t have a great deal of wealth, then they were the target for another powerful empire. This is still happening today and the  wealthier someone is, the more power and control they have over the market. A person can create monopoly if they are the bigger supplier, which is when a person alone or with a few other companies control the prices of a product or the service one is offering. Here are a few names of people that are known for their entrepreneuring skills. John D. Rockefeller: America’s First Billionaire  John D. Rockefeller was the leader in the Standard Oil Company’s. He built his first oil refinery in Cleveland back in 1870.He started of by working at the age of 16 as assistant bookkeeper for a small firm called Hewitt & Tuttle to one of the richest people in the world ever to live. By 1879, John D. Rockefeller supplied 90 percent of American oil and Standard oil tank, ships, etc.Then, in the 1880’s, John D. Rockefeller went further than just refining oil to producing crude oil. John D. Rockefeller employed a scientist named Herman Frasch, whose process made his fields yield an gigantic profit. He later expanded into foreign markets in Europe, Asia, and Latin America. Since the 1880’s, John D. Rockefeller turned his Standard Oil business into a monopoly. After setting up this enormous empire, he retired in 1895. Throughout his lifetime, he earned close to 1.5 percent of the country’s total annual economic output which is the equivalent of $340 billion today. That is more than three times the wealth than the wealthiest person in the world in 2017. After retirement,, he became one of the greatest philanthropist in history and donated, according to Philanthropy Roundtable, (“a highly respected website where the former president of  John Templeton Foundation, Mr.John M. Templeton Jr (1940-2015) who graduated from yale and earned a medical degree from Harvard Medical School said, “The Roundtable is the leading voice in philanthropy for objectivity, integrity, open-mindedness, and stewardship with a commitment to measurable results”) John D. Rockefeller donated more than $540 million (unadjusted for inflation). If the adjustment is done, the amount of money using the United States of America’s Department Of Labor CPI Inflation Calculator rounds up to $9,446,668,084.98. He is considered one of the greatest entrepreneurs of all time.   Bill Gates: The Richest Person in Recent YearsBill Gates, one of the most known billionaire in recent years. He got his wealth from a company called Microsoft. Bill Gates partnered with Paul Allen and made his company, Microsoft, into a multibillion-dollar company within 25 years. Many mistaken Bill Gates and think he created computers, but that’s not true because he created a software for the computers. He started off by creating a program with his friend, Paul Allen, called Traf-O-Data. This was a program that measured traffic flow in the Seattle area. According to the website called Entrepreneur.com, in their article, “Bill Gates” it says, “The two teens netted $20,000 with Traf-O-Data” (Entrepreneur). After a few years, Bill Gates and Paul Allen worked on writing softwares for companies such as Apple, Commodore, and Tandy Corp. Once they got some experience, both friends started their own software company and created Microsoft. In the article  “Bill Gates” it says, “By 1993, Windows was selling at a rate of 1 million copies per month and was estimated to be running on nearly 85 percent of the world’s computers” (Entrepreneur). Over the years, they made billions of dollars and now in the world, Windows that have a Microsoft software running in them control about 89.01% of the laptop/desktop market. The next closest competitor is Mac OS being at 7.92%. This all started from a small idea that the two friends created and turned into a company and made more money they ever could have if they worked for apple or any of the other companys.        Evan Spiegel: Youngest Person to Become a Billionaire (in recent years) Most people won’t know who Evan Spiegel if they were asked, but will know what Snapchat is. Evan Spiegel is the youngest person to become a billionaire. He was a business student at Stanford University when the idea hit him of being able to send a person a picture and disappear after a couple of seconds once they see it. This idea was then formed into an app on September 2011. At first, Snapchat was a big fail due to technical difficulties and according to Adweek in the article, “Snapchat’s Evan Spiegel Reveals How He Went From Startup Failure to Tech Star” it says, “No one used it except my mom,” he said while laughing. But it was true.” (Sloane). Although his company did not hit billions of users or even hundreds, he did not give up and continued to improve and build upon his company. Over the time, the company began to go viral and in the article, “Meet Evan Spiegel, the 26-year-old billionaire and Snapchat founder who just took the company public” on CNBC it says, “In 2013, Facebook tried to buy Snapchat for $3 billion. Then only 23 years old, Spiegel refused the offer.” (Clifford). Many thought he was crazy to reject an offer like that, but within 4 years Snapchat went public and sold it non voting stock for about $17 a stock and within a day the stocks went up 44 percent at $24.48 a share. Evan Spiegel net worth is now around 3.3 billion dollars and he will continue to make more over the years due to its popularity.Argument: How to Make More Money in a Business The reason why owning a business/company is the most efficient way to have hundreds of millions is because the owner gets to keep the majority of the gross net. When an individual works for someone, they give them a salary that they can afford paying them and make money for themselves while keeping their business/company going. In the the article, “What Percentage of Gross Sales Should a Company Payroll Be?” it says, “Here are payroll percentages for some industries as an example: Retail: 10 to 20 percent of gross sales revenue”(Sherman). This shows that if having a retail store like Five Below and make $500,000, only $50,000-100,000 would be the payroll for your employees. This show how small the percentage of the gross profit the employees get. Out of the $500,000 gross income, the employees only get a small fraction of the money. However, the business owner does not just get the rest of the money. They would take a percentage of the gross income and invest it back into the business. According to the The U.S. Small Business Administration in their article, “How to Set a Marketing Budget that Fits your Business Goals and Provides a High Return on Investment” recommends “As a general rule, small businesses with revenues less than $5 million should allocate 7-8 percent of their revenues to marketing.”(Beesley). Out of the 500,000 the business owner would take out 50,000-100,000 for payroll they should also take out 7-8 percent to invest back into the company/business to build upon it. This way, the business owner could grow their business and make more profit. Also, if looking at the top one hundred richest people in the world, they are all business/factory owners which have built upon it and invested in stocks and bought franchises to get wealthier. The facts show that when an individual works for someone, they don’t get paid more than their boss. There will always be someone on top making more money when a person works as an employee. They will get paid less and it would be close to impossible for that individual to earn more money then the person paying them. That is why people should open their own business/company to be able to earn majority of the money rather than having a fraction of the amount. One of the biggest reasons to have a business/company to earn hundreds of millions is because it is the safest and the most achievable way to do so. To become a business owner luck is not needed nor any special talent. There are plenty of other ways a person is able to become famous and earn hundreds of millions of dollars. The top responses people give when asked to name some ways a person can make hundreds of million are by becoming famous, playing a professional sport, and the biggest one that everyone says is winning the lottery. It is not as easy as one may think when it comes to becoming famous or playing a professional sport. A person needs to have gifted abilities and need a great deal of luck. BuzzFeed published an article called, “The Chances Of You Being Famous” which mentioned how the chances of an individual becoming famous are 1 in a 1,505,000 (0.00000066%). According to the NCAA (National Collegiate Athletic Association) in their article, “Estimated probability of competing in professional athletics” they have a chart with the average number of participants for the sport and the number that will be eligible for the draft for that sport and on average how many make it in the professional sport. For an individual who wants to be a professional football player, out of the 73,660 participants, 16,369 are eligible to participate in the NFL draft. Now, in the NFL draft there are only 253 draft picks, so the maximum amount of players that can be picked from the NCAA in that year’s draft are 253 or less if the NFL teams chose to pick players outside the NCAA. That is around 0.003% of NCAA athletes that get selected to play professional football and according to Sports Illustrated, the average career of a football player is about two and a half years with an average salary of $1.9 million per year. Another sport that is famous for their athletes is basketball, and according to the NCAA there are 18,684 participants and only 4,152 athletes are eligible for the draft. The NBA only has 60 draft picks and out of the 60, only about 44 NCAA participants get selected. That gives NCAA basketball participants a 0.003% chance if all 60 people were picked out of the total of 18,684 NCAA participants. According to Business Insider, an average basketball players career length of 4.8 years and an average salary of $5.15 million per year. Women sports, on the other hand, have a harder chance to make it to the professional basketball league than men’s because the women’s basketball league (WNBA) only has 36 draft picks. Out of the 16,593 NCAA women’s basketball participants, only 3,687 are eligible to participate in the draft. This gives them a 0.002% chance for a NCAA women’s basketball participants to make it in the professional league with an average salary of $72,000 per year (USA Today). The NCAA men’s baseball league has 34,554 and 7,679 are eligible for the MLB draft which includes 1,206 with only an average of 695 NCAA participants (0.02% of being selected). According to New York Times, an average baseball career is 5.6 years and their average salary is a little over $4 million plus players get $100 a day for meal money. Another popular NCAA sport is the men’s Ice Hockey league where there are about 4,102 NCAA participants with about only 912 eligible draft participate with only 211 NHL draft picks. Out of the 211 NHL draft picks, it says that only 51 of the NCAA participants get picked which gives them a 0.05% chance if only all 211 get picked from all the NCAA Ice Hockey participants (USA Today). According to USA Today in their article, “The average career earnings of athletes across America’s major sports will shock you.” The average length of a NHL career is 5.5 years with an average salary of $2.4 million. Last, but not least, men’s soccer, according to the NCAA their are 24,803 NCAA soccer Participants with 5,512 eligible for the draft and the MLS has 81 draft pick with aprosmetly and average of 75 picked form the NCAA giving the players 0.003% if all the 81 picks were form the NCAA. The average MLS players career is 3.2 years with an average salary of $316,777.33 per year (USA Today). This shows how hard it is to get into some of these major league sport and the individual would have all theses chances if he/she made it into the NCAA league. Without that, the possibilities are close to impossible chances of making it in. This is why starting a business/company would be much easier and it is a safer option than the others, as shown previously. According to the article, “The Marketing Power of Sports’ Stars” in The New York Times website, they said even famous athletes create business/company or some buy franchise to keep them from going bankrupt and athletes only get paid weekly while they are are playing. They don’t get paid in their offseason, so they need another source of income  which is why so many sign with brands to keep the income flowing when they are not getting paid. Some people  may also say they can get money by winning a lottery and that it is a lot less work, but that can be far from the truth. The person who plays the lottery has a bigger chance of dying from an asteroid strike which is 1 in 74,817,414 (0.00000001%) than winning a $700 million Powerball Jackpot (Time Magazine). This shows clearly how creating a business/company is a lot safer than any of the options out their and the person can also earn money while unlike any of the other options.      Counterarguments and Rebuttals: Why Business?Many may say that some businesses may not work in certain times of the year, which can lead failure and stop the person’s income. This is completely true and this comes with any business/company a person opens. If businesses didn’t have cons to it, then everyone would be doing it. This is where the initial setup plays a big role. In the article, “How to Run a Successful Small Business” it says, “Take advantage of opportunities to expand your small business. This may mean looking for new products to add to your list or extra services to offer your clients”(Meyers). This means when a person has a small business, the individual is not fixed to one thing. They can sell hats and winter coats in the winter season and when summer comes by they don’t have to sell winter coats, and can get swimsuits and jewelry and sell it. The business owner is not attached to one specific product. All the business owner would have to do is just buy a different business license and buy new products/inventory when they know sales will go down. Individuals will know this information when they do the market research at the beginning or a business startup. The person who is making this transaction to a different product doesn’t have to spend all the money at once. The article, “How to Start a Business With (Almost) No Money” says, “There are a few expenses that you won’t be able to avoid, however. Licensing and legal fees will set you back even if you cut back on everything else. According to the SBA, many microbusinesses get started on less than $3,000, and home-based franchises can be started for as little as $1,000.” (DeMers) This explains how getting the licences and the legal fees will cost too much, so instead of buying new machine worth $3,000, the individual should cut back and lower the amount to $1,000 to try it out and if it works buy more. This is a way a business owner can keep them self from going bankrupt. A few people may argue that a person needs to be smart in order to create a business/company, but this is not true. In fact, there are some billionaires that haven’t even passed high school. According to the article, “9 Billionaires Who Didn’t Graduate High School” it said, “It’s hard to believe that Rockefeller only attended high school and brief bookkeeping studies at a commercial college before seeking employment at the age of 16.” (Daisyme). It’s hard to believe the greatest entrepreneur of all time and arguably the richest American of all-time, John D. Rockefeller (1839 – 1937), didn’t graduate from high school. Some may say that during that time period not many people went to college and would rather work. Well, in the same article it said how Richard Branson (1950 – present) struggled with dyslexia and dropped out of school when he was 16. In the same article mentioned above it says, “Virgin Records stores and music label. During his career, Branson has overseen overseen approximately 500 companies and is estimated to be worth around $5 billion.”(Daisyme). This shows how a fancy degree is not needed and a person does not need to be smart to own a business and build upon it. According to the the article, “The Importance of Basic Math in Business”, it says people need to know “Calculate Production Costs, Measure Profits, Determine Pricing and Analyze Finances”(Deeb). This is all the information a person can learn by reading a simple book at the library or you might have also been taught some basic algebra in school. If the individual didn’t learn this, then they always have Youtube where there are thousands of videos which they can learn on their own during their free time.  Conclusion: Business is the Key to SuccessThere’s always a way from someone who was is not as privileged as most people and he/she may not have the option to go to school, so creating a small business is a way to escape poverty. It might not always workout, but there’s hope for people that may live in countries where they don’t get the right education, or individuals who may not have the money to go to college. Creating a business is a great way for the person to still have a chance to be successful. Many people want to get rich and help others or their family and are stuck with a low paying job. They will never have hundreds of millions of dollars if they work for people for the rest of their lives and they will hope for their sons to become famous, an athlete, or one day win a jackpot lottery hopping they can have hundreds of  millions one day. This is why the only way for an individual to be truly wealthy (have hundreds of millions) is by owning a business/company and building upon it.

x

Hi!
I'm William!

Would you like to get a custom essay? How about receiving a customized one?

Check it out