Are you a business owner or an employee? Think that through carefully.
Let me put it a different way: What would happen to your business and income if you were to leave today and take a three-month vacation?
If your business would fall apart and your income would stop, you’re an employee—even if you technically own a business entity. The truth is that the vast majority of professionals, and even many entrepreneurs, think they own a business when in fact it owns them. What they really have is a job.
They have to be physically present and doing the work or the income stops.
They spend their time working in the business, rather than on the business.
They don’t have the right people or systems to duplicate themselves.
They can’t sell the business because it won’t survive without them.
Robert Kiyosaki explains the difference between a job and a business in a parable:
There was once a village with a problem: there was no water unless it rained. To solve the problem, the village elders decided to solicit bids to have water delivered daily to the village. Two people volunteered and the elders awarded the contract to both of them.
The first, Ed, immediately bought two buckets and began running back and forth along the trail to the lake which was a mile away. He immediately began making money, but he worked terribly hard, waking before the rest of the villagers to run down to the lake for the morning haul.
The second man, Bill, disappeared and was not seen for months. Instead of buying buckets to compete with Ed, Bill had written a business plan, created a corporation, found four investors, employed a president to do the work, and returned six months later with a construction crew. Within a year his team had built a large pipeline which connected the village to the lake.
Bill’s pipeline delivered cleaner water than Ed’s and it supplied water 24 hours a day, 7 days a week. Bill was also able to charge 75 percent less than Ed.
Of course, Ed ran ragged while Bill was able to enjoy life—making money even while he was on vacation.
So the question is: Are you hauling buckets or building pipelines?
Now, let’s be real about this: Building a business is no small task. It’s incredibly difficult, particularly for trained professionals and personality-based operations. When you know as much as you do and are as skilled as you are—and you care more than anyone—it’s very challenging to replace yourself. But it is possible.
It’s a classic case of hard/easy, easy/hard. It’s easy to just show up and do the work every day, but your life will be much harder over time. Conversely, it’s hard to build a business, but it makes your life way easier over time. Doing so requires a totally different mindset. It requires that you do things that don’t immediately pay off.
I’ve had to do the same thing for my online consulting businesses, which are highly-technical and personality-based business. But over time I’ve been able to escape the job trap. And trust me, it hasn’t been easy.
For me, it was much easier to do a coaching call myself than to train a new coach. But I knew I could only be in one place at one time, and I wanted to impact more people, so I chose to train new coaches. I was committed to building a business.
There’s still progress to be made, but I rarely do coaching anymore. I’m able to work on the business rather than in it, and I have time to go on trips and focus on the things I love doing most.
Here’s how you can do it, too:
1. Build the Foundation of Culture
First, you want to be very clear on who you are, what you stand for, what you stand against and what you really want to define your organization. Write down your non-negotiables and never allow anyone in your organization to stray from them.
For example, we have everyone that works with us read our style guide which details our values, vision, and culture. We also do several interviews before hiring to make sure employees are a match, and we emphasize values over talent.
2. Hire the Right People, Train them Meticulously, Treat them Right
There’s an informal debate in the business world between Michael Gerber, the author of The E-Myth Revisited, and Seth Godin, the author of Linchpin.
Michael Gerber says that building a business is all about systems. He teaches to make your systems so simple that pretty much any warm body can perform them.
Seth Godin says it’s all about finding the right people—what he calls indispensable “linchpins.” Linchpins are proactive, responsible and smart. They see needs and fill them. They’re full of ideas for improving your organization.
My take is that any business needs both, but I side with Seth when it comes to hiring. You don’t want the lowest common denominators that will be the cheapest to pay. You want the best and the brightest who can adapt to change and proactively improve your organization. You want people who think like trusted stewards of the business upon whom you can depend to make good decisions.
The way to find the right people is to first create the position you need filled. Understand the mindset and skills that will be required to fill that position. Then hire someone whose soul purpose fits that position.
Be willing to allow other people to express their strengths and weaknesses to build networks and teams. There are some things you hate doing in your business that other people will love. Hire them, train them and let them shine.
And always remember: Culture is more important than talent. Yes, you want A-players, but not those who will destroy your culture. We’ve fired two of our best-performing salespeople because they were arrogant or refused to play by the rules.
Also, never forget to treat your team with the same level of respect and give them the same energy as your customers and patients. This creates loyalty and empowerment.
3. Define & Document Your Processes
Processes are how you want specific tasks to get done. They create structure and define task flow.
For example, if you’re a chiropractor, how do you want new patients to get processed and entered into your system? Write down the basic steps.
Processes are labor intensive and require people to run them. You can support and fine-tune them with procedures and technology later, but first you have to get a basic framework in place.
4. Fine-Tune Your Processes with Procedures
Once you have general processes in place and the right people to run them, you add detailed procedures to become more automated and efficient.
Processes are the big-picture steps outlining how you want something to happen. Procedures are the intricate details and sequences involved in delivering the big picture.
Processes are about outlining how to do the right things in the right way. Procedures are about doing those things as efficiently and cost-effectively as possible.
For example, in my business, one process was creating an on-demand educational system. I outlined how I wanted it to function and what I wanted it to do for members. I defined the benefits.
Next, I created the procedures for delivering it. I recorded videos and wrote content. My team created the website and built out the technology for delivering the content.
We kept asking, “How can we create value without requiring ongoing human labor?” This is a critical question to add procedures to automate your processes.
A warning with processes: One common mistake is to over-systematize your business, which can actually crush your business instead of helping it grow. You have to be adaptable with systems because things can rapidly change. Keep them very simple initially, and understand that they’ll never be perfect.
5. Leverage Content & Technology
Content and technology are powerful tools for implementing procedures, such as the following:
Content
Videos (digital or DVD)
Audio recordings (podcasts, CDs, MP3s)
Books
Ebooks
White papers
Email newsletters
Workbooks
Blog articles
Technology
Customer Relationship Management (CRM) software, such as Infusionsoft
Email marketing software
Ecommerce
Educational & content curation websites
Online landing/sales pages for lead capture
Automated email sequences
Social media
Content and technology create automated ways to deliver on your processes. For example, suppose a doctor’s current process for new patients calls for an educational meeting between the doctor and patient. Time could be saved by filming the new patient meeting, packaging it in a DVD and giving it to new patients instead of needing to meet one-on-one.
They could also create a series of educational emails and set them up to send each week automatically.
One caveat with this is that many people get too caught up in the technology before understanding whether or not it works for the people involved. Leverage technology to serve people, don’t focus on it to the detriment of people.
Content and technology are also critical for personality-based businesses. They make people feel like they know you even if they’ve never met you in person. Dr. Oz is an excellent example of this (http://doctoroz.com). No one thinks Dr. Oz is going to perform their regular physical exam, but they’ll trust the doctor he recommends because of how he’s utilized the media.
Live events are another way to reach more people in a time-efficient way. For example, many top-performing chiropractors do monthly or bi-monthly advanced health talks for patient education. They’re able to speak to 50 people or more instead of teaching them one-on-one in the office.
6. Let Go
The hardest part of all of this is simply letting go and trusting your people, processes, and procedures.
I’m used to doing things a certain way. But when I hired a CEO, I had to relinquish control and allow him to make my organization bigger and better than what I could do alone.
Even more difficult than dealing with differences in operation styles is the psychology of letting go. When I handed off coaching to other people and stopped doing it myself, I had to come to terms with it psychologically. Initially, I didn’t feel like I was creating as much value, which was very difficult.
In truth, letting go and freeing myself up allowed me to create even more value, though it took time for me to realize this. I had to learn the difference between maximizing control and maximizing value.
Value maximizers understand that they have to take more vacations away from the office and allow their people to become empowered and grow. They have to trust the value of others and focus on their own.
Too many professionals, by focusing on maximizing control, become mediocre at a lot of things instead of becoming amazing at one or two things. This leads to exhaustion and, in many cases, even becoming resentful of their profession.
The caveat here is that it’s a huge mistake to hand off too much control too fast. Don’t get so eager to let go that you create chaos. Think of this like a relay race. You need a good transition process. You need to adapt and adjust to challenges that arise.
But whatever you do, never make the mistake of believing you can’t build a business. You can. And by doing so, you’ll create more value and have far more impact than you ever could working hard in a self-imposed job.
To higher profits and better life,
Concepcion Guzman, MSIS, MCITP
P.S. If you got some value, do not forget to FOLLOW @concepcionguzman, RESTEEM, AND UPVOTE!
Well thought out, well presented.
I really like the parable, and I liked the step by step process, and I like the "Lynchpin" theory as well.
It's all about being professional and paving the way for those that follow to help support your efforts.
Thanks for reading. I appreciate your input. I believe leading by example is always a winner. Your employees and partners are always looking to learn from you. Sometimes they even want to become you. #LeadByExample
Good read, @concepcionguzman. Some people trade their job for a "business" which ends up being another job, just that they are self-employed. There's nothing wrong with that...just that i hope they weren't planning to have the freedom to do whatever they want, whenever they want.
Yes, you are 100% correct. I believe the way "be your own boss" has been marketed in the past is very misleading. Many people believe they can plug-and-play to any step-by-step program and be successful overnight.
I strongly believe anyone can get to the point of owning a business that runs 100% on auto-pilot, but before that happens there is some work to be done. According to Entrepreneur.com, the main reason 9 out 10 business fails is because the owner have the wrong perception of entrepreneurship, not because of resources or tools.
Thanks for sharing your thoughts!
I have always wanted to own a business since I was 12 years old. I still have the same dream and I find it very hard to get set with what I want to do and what kind of business to start. As I always feel like a new business has to be something that's creative and new. Still struggling but definitely trying out different jobs helps a bit. Cheers guys
Thanks for commenting. There is a basic but powerful exercise that make starting a business a lot easier. I first heard this from John Lee Dumas from Entrepreneuronfire.com.
Here it is:
You will journal for 5 days straight, no excuses. You will start with a blank piece of paper every day. Draw a vertical line through the middle of the paper. On the left side, write your passions. On the right side, write your expertise (things you can do naturally without efforts).
You will do this everyday for 5 days straight. Everyday you will write on both sides of the paper until you run out of thoughts. This could take you a minute or 15 minutes.
On day 6, compile all your notes and find out what's the most repetitive passion and expertise. There is your business!
Maybe you are passionate about football and you happen to be an expert at networking. What about a podcast where you talk about what it is to play the game with football players?
Just to give you some ideas...
Love this idea, I shall give this a go. I already have a similar list with one more section for "market" but I only spent one day on it, and doing this for 5 days makes more sense :).
It's a great exercise. The ideal of doing it for 5 days is that you are forcing yourself to extract from your subconscious rather than the top of your mind. During the fourth and fifth day you will find yourself going deeper in your thought process. That's when the real answers come into play. Listen carefully and choose wisely.
Thanks for the article @concepcionguzman, have to agree with you that the hardest part is letting go of control and trusting your employees. Most of them probably don't have the investment in the business like the owner does. That's why it's good to delegate, and give them a sense of ownership and responsibility. The more you do that the more you'll be able to let go, and the more your business will be free to grow. I've worked with a micromanager before, no thanks!
Thanks for reading! Yes, micro-managing is a recipe for disaster. I believe we must make employees and partners accountable for their results rather than looking at them through microscopes.
I have tried everything in my career and the best dividends keep coming from creating crystal clear expectations and measurable outcomes. If you have those two working together, you can let your employees get to work and follow through with results.
Let Go(knowing when to let go of some market business or stratergy)...The most difficult part..and also when to hold on..there is a thin line between these two..
I agree. It is one of the toughest things to do in any business. One thing I can promise you is that once you do it the first time and see positive results, it becomes second nature. The key is to manage that little voice between your ears.
If you master it, the sky is only the starting point.
LOVE THE TIPS! UPVOTED!
Thanks for the upvote! I appreciate it! Glad you had some value out of it.
Ive been living with being your own boss mentality after I left my first retail job, I just hate having to report to someone else, HATE IT. I rather work hard at something that I love and get paid less than having a boss and being miserable -.- Great post Concepcion! Just followed you..
Thanks for sharing! We are the "weird" ones (as the herd call us) that prefer to work 84 hours a week for cents on the dollar than 40 hours a week for a steady paycheck. Only us can understand each other - Lol. People find it very hard to live without a steady paycheck, but are completely fine with hating 5 out 7 days a week.
I can't stand misery! We only get to live once, choose happiness!
NICE POST!
Thanks for reading!
You must believe it and keep trying !!Thanks!!
Great Content and Thanks for sharing. In Indianapolis, I am mentor at an economic incubator called the Grindery on Market Luther King Dr. You can guess about the neighborhood, we are a becon of change and hope. Getting ready to run our 8th semester of classes. While not everyone can boot strap, just understanding these concepts can guide one to build a life of abundance.
Thanks for reading! I will be in Indianapolis in July. What's the age group for your program? I was part of a similar program back in North Carolina last year. Let's connect.
We are called the Grindery. Hit me via Steemit or email [email protected]. I will be back in Indianapolis last two weeks of July. Looking forward to it, if timing is right..
Thanks for the post. Really good info. I'm curious, why are you here on Steemit when your other endeavors seem to be doing pretty well? Upvoted, Resteemed, and Followed.
Thank you! Great question... during my career as an entrepreneur and investor, I have always been a strong supporter of economic systems such as the free market and peer-to-peer. I think we are all aware that during the last 4-5 centuries we have been strongly persuaded to believe in one system... centralization.
Now that's finally changing with platforms such as Steemit and other crytpo projects.
I find fascinating that my voice and expertise can be "rated" in a platform where real people decide the quality of the content and not a centralized algorithm designed for company benefits (aka. all other social media platforms).
I believe this platform fits any professional no matter what level of success. This is the future. And not matter what's your past level of success, you must adapt to the new technologies if you want to keep up a healthy wealth.
As a great example, what happen with streaming video? If anybody should have had that market locked, it would have been Blockbuster, right? But by 2010, Netflix put it out of business.
Owning a business is much more profitable then just working has an employee, and your post will help everyone understand the profitability.
Amen to that! Thanks for reading!
AND for guys who wanna learn more about it, just watch The Wolf Of The Wall Street ;-)
That's my favorite movie of all times. Now hooked with Billions in Showtime. Amazing series with real actionable takeaways. Highly recommended.
Nice article! I have upvoted your post, can you help me to upvote my post too? Thanks
Great article! Can't really add to it. Stuff I have learned before but need a good reminder of the importance of what are the best things to concentrate on.
I jus discovered the article now so I can't even upvote it :/. But a very nice article. A nic reminder for myself as I'm in the middle of switching careers and as well I want to work less soon so I'd have more time on building my own things and potentially businesses from that.
Though my question is, how would you suggest going about buiding a pipeline if you don't have initial capital for investment, you don't want to go about chasing investors , etc.
My idea is to freelance to pay off my living expenses and then invest the little bit I have left into my ideas and freelancers to help me out.
@joewantsfreedom this is a great question. In order for me to provide you an educated answer, I would need to ask you couple of question to have a better understanding on your plans. Feel free to send me a message in private.
FYI: That's a topic with a lot of wild opinions and debates, but I believe the best answer and advice comes from Mike Dillard and his interview with Sean Ogle titled "How to Start a 'Bridge Business' that Replaces Your Income".
I have never seen an easier and detailed actionable path than Sean's route. It's great for aspiring entrepreneurs currently working a full-time job. Check it out and let me know your thoughts.
Ok, so I just finished listening to that @conceptionguzman. Thank you. It was good :). They pretty much talk about my own plan of which I also talked a bit about my post
[Traveler Trying To Fit Back In] Thoughts On Nine To Five Self Made Prisons And How To Position Yourself To Win The Rat Race And --- by @joewantsfreedom
Basically to keep it short my plan would be to go part-time in October in my current job (assumig it's possible) and keep on working on my freelance skills (UX/UI Design, Development, Security, I want to get into Mobile Marketing/Growth Hacking), and as mentioned in the podcast I think I'll also look into Copywriting more, maybe even offer my services in that.
Then with more developed skills and portfolio I could go "full on" freeance and work let's say 80-120 hours a month and use the rest to work on myself and my own ideas and at the same time invest a bit every month.
Also, you said I can contact you. Can you tell me where? Pretty sure there is no messaging feature on Steemit :).