Compounding returns on entrepreneurship

by Dale Davidson March 18, 2026

When investing in the market, you will benefit from compounding.

This means, on average, every year your money will grow at a 7% real rate (meaning after inflation).

So if you invest $1,000, after 1 year, you will have $1,000 X 1.07 = $1,070.

After year 2, you will have $1,070 X 1.07 = $1144.90.

In 30 years, you will have $7,612.26, or a 7.61 times return on your initial investment.

Pretty good for a one time investment + time.

Similarly, any entrepreneurial activity you take will have compounding returns.

My first business was a travel playing card business called TrekDek that failed.

Here is what I learned:

How to set up a WordPress blog
How to NOT manage an outsourced team of web developers
How to network with people I didn't know
How to write
How to incorporate a company
How to sell stuff online (just logistically, not successfully)

This all served me well for my future entrepreneurial endeavors, including going 1099, writing this book, and expanding my government contracting company.

Am I as successful as I want to be?

Nope.

But the skills I learned have served me in ways that I couldn't have predicted, just much later than when I wanted.

I expect the things I do now to pay off later too, and also take longer than I want.

The $70 you earn in year 1 is not exciting.

The $7,000 you earn over 30 years is far more rewarding.

So if you're feeling discouraged by the lack of results you're getting with your 1099 endeavors, that's normal. The results will come later at a faster pace.

Want the full playbook? Check out Going 1099.