By Doug Winnie, Executive Coach and Business Coach
Do you have a job or do you own a business? Assuming you are a business owner, then, of course, you own the business. If this is a silly question, then it certainly has a simple answer… or does it? Consider these questions to help you answer the question:
- Have you ever had a business valuation performed?
- Do you plan to sell your business when you retire?
- Is it okay for you to skip a paycheck due to poor cash-flow or a lack of profit?
- Do you have employees?
- Do you look at your P&L statements in Accrual form?
If you answered “Yes” to all the above, then you are truly a business owner. If you answered “No” to all of them, then you are likely the owner of a job (which you created by having a business).
Jim Rohn says, “A job will make you a living; a business will make you a fortune.” Did you build a business to have a “job” or to make a fortune?
Lots of people have started a business in order to have a job. They were laid-off, quit, were fired, etc. and thought, “I will control my own destiny.”
As a business owner, you’ve discovered many challenges to overcome. One challenge is to get sales. The biggest challenge is to “become” a business owner.
If you own a business and are focused on making an income (usually enough to pay the bills), then you likely have a J.O.B. (Just Over Broke). Depending on your motivation, to pay the bills or to make a fortune, you understand the importance of knowledge and the need to learn more. You also understand the value of creating jobs. These employees become profit centers and will perform many, hopefully all, of the tasks in the business.
Let’s go through an example: Consider the locksmith, Jack, who works every day in the business – installing, repairing, and re-keying locks. Jack’s business is to be a locksmith. When Jack retires, he may give the business to one of his children or maybe he will sell it for a small amount. Jack probably won’t travel the world from the profits of the sale; instead he most likely will sit and watch the world go by. Jack’s lifestyle is “Just Over Broke” (a job).
Let’s look at a different scenario: This same locksmith and business can have a significantly different outcome. In this example, Jack has a different focus – to grow a great business, have it run without him, and then sell it when he reaches 55 years old. Let’s call this other company, Premier Locks. Premier Locks employs several locksmiths including Jack. Jack is the teacher, the motivator, and the leader of the organization. Jack’s focus is to grow the business and reinvest some of the profits to build a cash-flow machine. His goal is to sell the business for $5 million in 10 years. Jack will work to become a great marketer, a great salesman, and eventually a great leader. Jack will work hard on himself to become the great business owner while Jack will get his team to become great locksmiths.
This is a very big difference in thinking. In the first scenario, Jack’s focus was on becoming a great locksmith. In the second scenario, Jack’s focus was on becoming a great business owner, and in turn, making a fortune. Look back at your personal goals and your personal education. Do your goals align with your education? Are you learning how to become a great business owner, or learning to become great at your job?
Having lived this exact situation, I understand the transformation required to grow a business, not to grow a job. With the right mindset, every business owner can transform from just making a living to making a fortune.
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As an Executive and Master Business Coach, Doug Winnie offers complimentary coaching sessions and monthly workshops so everyone can become more successful in less time. For more education and motivation regarding this article and other topics relating to accelerating your business success, contact Doug Winnie by phone at 713-936-3814, by email at [email protected], or visit his website
