Are you a self employed entrepreneur hoping to become a business owner? If YES, here are 7 easy steps on how to turn your self employment job into a business.
Have you read the book cash flow quadrant? If you haven’t, then I will recommend you get it as soon as possible. In that book, Robert Kiyosaki identified the four quadrants of money that every human being is categorized into. They are:
- Self employed
- Business owners
Every year, thousands of businesses are started. Unfortunately, most of those businesses are self employed type of business or sole proprietorship. Today, the media is filled with news of work from home jobs, home based businesses, seminars on specialized skill development and do-it-yourself investment ideas. The sad news is that these sorts of businesses are simply self employed jobs in disguise; where your earning potential is proportional to your work input.
Now before I proceed, let me draw the line between a self employed business and an established business. Simply put, a self employed job or business cannot survive without your interference; it means you must be actively involved in your business for it to function.
Examples of self employed businesses are home based businesses, salesmanship, specialized skilled service such as dentist, barbing and so on. On the other hand, an established business is run through an organized system and such system can run without your active participation.
One of the most important phases of business growth is the transition from a one-man business to a well-structured business. Unfortunately, most small businesses never make such transition. I am writing this article today to guide you in the transition process of becoming a business owner.
Most successful entrepreneurs and drop out billionaires of today started out as self employed entrepreneurs. Examples are Henry Ford, Steve Jobs, Robert Kiyosaki, Debbi Fields, Ray Kroc, Aliko Dangote, Cosmos Maduka, Richard Branson and so on. In fact, I started out as a self employed entrepreneur but later transited into a business owner.
Sincerely speaking, I don’t think I have fully completed the process. Though some of my businesses run without me, I am still very much involved with the development of my other businesses. The reason is because once I complete the process in a particular business, I start another business. So I believe I will fully exit the process when I retire. Well, that’s for me, let’s focus on you.
7 Easy Steps to Turn your Self Employment Job into a Business
The ultimate goal of the transition process from a self employed entrepreneur to a business owner is to get the business off your neck. The moment your business is off your neck; the moment your business begins to run without the need for your direct effort, you have completed the transition process. Now how do you begin the transition process? How do you get your business off your neck?
Before I go into the details of the transition process, I want you to bear in mind that there is no set time frame for the completion of the transition process. The transition process can be completed in as short as three months or may take more than ten years to complete. It all depends on your pace, your plan and the growth rate of your business. Now how do you turn your self employment job into a business?
The Seven Step Action Plan
1. Envision the possibility
The reason I suggest you first envision the possibility is because if you can’t envision your business working without you, it will never become a reality. You must see beyond your present reality; you must see yourself as a business owner.
2. Change your mindset
Your mindset is going to be an obstacle to the transition process so it’s better you deal with it early. The problem that keeps entrepreneurs in the position of being self employed is their mindset.
Self employed entrepreneurs such as artists, plumbers, hair stylist and so on can’t let go of their business because they believe nobody else can do it better. They are perfectionists who prefer to do things themselves; and if they train an apprentice, their mindset will never allow them to co-exist with such trainee.
And when the trainee gets kicked out; the person becomes a competitor to the trainer. So if you are going to successfully complete the transition process, you must change your mindset.
3. Draw a plan
Every successful process begins with a plan. Without a plan, you will only be running in circles. What skills are needed in your business? What are the criteria for bringing in employees? How will the transition be financed? These are the questions your plan must address. Most importantly, your plan must be strategic in nature and executable.
An important step in turning your self employment job to a business is to get incorporated. Incorporation increases your sense of responsibility, both to your business and the government; and it spurs the need for a business team.
Assembling a business team is very important to the process of becoming a business owner. In previous articles I have written, I emphasizes the fact that building a business requires a synergy of both entrepreneurial and professional skills; this is where the need of a business team arises.
In fact, this is where the real business challenge lies; this is where most of your transition time will be spent. Once you can overcome this challenge and get yourself a business team; your business is set for a change in structure and growth.
The coming of a business team will definitely free you of some major tasks but you still need to get more tasks of your neck through delegation. Assess your team or employees, select competent individuals who have proven themselves trustworthy and delegate vital tasks to them.
After engaging in the art of delegation for a certain period of time; it’s time to stand aside and monitor your team and employees. This is where you correct and implement your succession plan. If anything goes wrong in this phase of the transition, you can step in and make amends.
But if nothing goes wrong in this phase; then it’s going to be jubilation on your part because you have just completed the transition process from being a self employed entrepreneur to a business owner.