If it wasn't for Robert Kiyosaki's Cashflow Quadrant book, I wouldn't have understood the intricate differences between being a self employed and business owner.
In this day and age, traditional jobs have lost a lot of their appeal, especially among newer generations.
Almost everybody dreams of working for themselves, being their own boss. And rightly so, the opportunities are available, the systems and processes to to turn this desirable dream into reality.
I definitely agree with the viewpoint that despite all the craziness that's happening, we live in prosperous times, generally. However, the problem for me, is reconciling these seemingly opposite trends into a sensible and coherent whole.
The Forest of Independence
If you jump off the cliff of having a traditional job, you'll most likely land on the self-employed forest and then climb your way upwards to summit of business owner mountain.
Of course, you can also parachute your way directly into the mountain without having to go through the forest. In many cases, this depends on the level of information we have and the resources at our disposal.
In my view, the self-employed forest is like a cooking process for a solo chef. You're in complete control of every ingredient, the cooking temperature, and the final presentation.
Definitely, it's a fantastic way to hone your skills and develop your signature style. But, just like a solo chef might struggle to cater a large event, being self-employed can limit your growth and expansion.
Like a jack of all trades, you wear all the hats, from sourcing ingredients (finding clients) to cooking (delivering the service) and cleaning (administrative tasks).
For some, this can be incredibly rewarding and even fulfilling, but it's important to recognize that it also comes with limitations on scaling your business and income(especially if that's the end goal).
That said, the self-employed stage can be incredibly valuable in developing multi-disciplinary skills, understanding multiple parts of the whole, which are all crucial in later stages, particularly when it comes to building systems and processes.
The Golden Seeds
As a self employed, you wear many hats and by documenting your approach and creating repeatable systems, you lay the groundwork for a business that can function without your constant involvement.
For me, this is the crème de la crème of being self-employed. You understand every aspect of your craft and the skills you hone in the self-employed forest become the golden seeds you plant on the mountain of business ownership.
Given that we also live in a technological age, these golden seeds can be leveraged and scaled through automation and online platforms.
This allows you to plant a "whole orchard of businesses", all nurtured by the knowledge and systems you built during your self-employed phase.
My favorite example of this is Marie Forleo, who started as a freelance copywriter(a classic example of being self-employed).
She then leveraged her skills and knowledge to create online courses and training programs, scaling her business into a multi-million dollar empire. Of course, this didn't happen overnight.
The Unparalleled Rewards of Building a Business
Now, being a business owner is a different ball game. For one, the system you build begins to operate with a life of its own, independent of your constant involvement.
Secondly, the growth potential becomes exponential, but so do the complexities. This necessitates a shift in mindset, where the focus moves from micromanaging every detail to empowering and trusting a team to execute your vision, from the tactics of execution to the strategy and systems that drive long-term growth.
This can be a challenging transition, letting go of control can feel counterintuitive and thinking mostly of strategies instead of just tactics can seem a necessary paradox. You must loosen your grip on the details while tightening your focus on the big picture.
Overall, the reward is the satisfaction of building something bigger than yourself and potentially creating a lasting impact on your space, this is a feeling unlike any other.
Thanks for reading!! Share your thoughts below on the comments.