Before I get into the meat of this article, I want to establish something so that we can avoid confusion later: there is a strong and definite difference between a business owner and someone who is self employed.
- Business owner – A business owner owns one or more business that brings in an income. A business owner usually allows the business to be run by qualified staff- the idea is that the business would continue to grow, even in the complete absence of the owner.
- Self employed – Someone who is self employed works for themselves, though they are completely dedicated to their occupation. This business is not self-sustaining, and should someone who is self employed stop working the business would likely fail.
Chances are that you see your business in the mindset of someone who is self employed. There is nothing wrong with this, and there are thousands of successful people who are self employed. However, a business owner will usually make more money and operate under a smaller workload than someone who is self employed.
So how do you transition from being self employed to someone who is a business owner?
The first secret is leverage. Find a way to leverage your time, such as using general managers or dedicated management staff, and you will be able to draw an income without even having to work.
The second secret is repetition. Developing a system that can be taught and repeated is the easiest and most successful way to make the transition from self employed to business owner. This involves a few steps:
- Work your business, hire staff, and develop a solid income stream.
- Train your staff to take on more duties and obligations, freeing up your time to focus on the next step.
- Find and train quality personnel who can take on key positions within your company. These people should be able to delegate and manage staff.
- Hire and train a general manager- someone who will take on the role of assuming the core of the leadership. Pay this person well, as they will essentially run your business for you.
It sounds quite simple, and though it is not much more complicated in practice, it’s not always cut and paste. Once you have created a leadership structure that will allow you to move away from the business and still operate the business is no longer your job, but rather your investment. You know own a business that you don’t actually work in.
As long as you are working your business you are self employed. That fact is set in stone, and the only way around it is to transform your business.
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