Many business owners I work with often complain about feeling stuck in their business.
Are you working excessive hours, not making the money you thought for the effort you make?
Are you missing out on time with family and friends?
Could it be that you don’t own a business . . . and you actually own a job?
There is a significant difference between self-employment and business ownership. In my video below I explain why people feel the way they do and what needs to change to have the time, money & the freedom business ownership can provide . . . if you make the changes needed.
As a bonus here is a link to The Entrepreneurs Cheat Sheets
About 20 years ago, I read a book called “Rich Dad Poor Dad” by Robert Kiyosaki and in that book he used the model to describe the four types of people that exist in business. It’s called the “Cash Flow Quadrant”.
The four quadrants are: Employee… self-employed… business owners… investors…
So, what happens is… the employee takes his job from employment to self-employed.
Here we had a job… now we own the job. Do we have more time? No.
So we must make more money? Family time?… holidays?… NO!
This is why we did it, because we wanted more family time and we wanted more holidays, but sometimes it doesn’t work out that way.
But there must be a better way – and there actually is…
But you need to make a jump to the other side of the model.
There must be a shift into what I call “business ownership”, and the difference between self-employment and business ownership is you don’t own a job.
Business ownership is about owning a system.
Business ownership means that we move from being more passive and less active. One of the key differences is that over here, we’re applying our technical skills. So much so that some self-employed, become artists.
Most of the people I work with and have met that operate in this self-employed quadrant have become so good at their technical skills I call them “artist”.
But their “artistry” is what holds them back. Becoming so good at what they do means that nobody else can do it. People that exist in this quadrant say things like, “if you want a job done, your best to do it yourself”. “The only way I can get the quality that I want is to do it myself.” Does this resonate with anyone you know?
On the other side where we’re being more passive, these people are “managers”.
They’re managing systems, they’re managing people. They don’t give their time and their money to the business. They start to use other people’s time and they start to use other people’s money, and they start to use other people’s resources.
Most of the people I work with, that’s what they want (business owner quadrant). But that’s what they do (self-employed quadrant).
Some of the people that I work with, an increasingly large group are making another shift. And they are moving into the “I” quadrant, the Investor.
The big difference is that instead of just owning a system, the investor owns multiple systems and the investor has multiple people working for them, and the investor has multiple resources and only ever use other people’s money.
They don’t use their own money and they are entirely passive. There’s still some degree of active involvement here because we’re managers. But the investor has now become an Entrepreneur. A facilitator of the manager who manages other self-employed people and the employees.
So my message to everyone today is if you decided to move from employment and you operate in this self-employed quadrant, but that’s what you want, there’s a few things that need to change.
What’s the difference if we use the same categories? What’s the time available to the business owner and investor? Do they have time? Yes, and why do they have time? Because they’re using other people’s time. So, from the time point of view, there’s a big “Tick”. What about money? Business owner and investor, now we can make lots of money.
Alright? If we have both time and money, in my experience, we be end up being happy people, and happy people spend their time and money with family and holidays.
The most important thing from here to here is a shift in values.
On this side (left hand side), the value people focus on used to be money. But the shift over here (right hand side) moves to freedom. That shift in mindset is the key to becoming a business owner. It’s deciding that freedom is more important than money, because the money will follow if we have got control of time, people, resources, and we actually want to spend time with our family and on holidays.