October 11, 2008 01:23 am
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This is the fourth part of a multi part series examining moving up the Entrepreneur Ladder. Last week I discussed the second rung on the e-ladder called manager. This is the scary level where the aspiring entrepreneur advances from being self employed to hiring people to share the workload and/or contribute in areas of the business where the business owner is either weak, or does not enjoy.
At this level many business owners return to level one self employed because having employees produces too many headaches. They have not learned how to effectively hire, train, compensate and motivate their team. Additionally, if the aspiring entrepreneur is to move to level three owner, (s)he should strive to acquire as much knowledge as possible about systems, team building, leadership and recruitment.
It is at the third rung of the e-ladder where we begin to enjoy a new experience in business ownership, leveraging ourselves effectively through people, systems and technology. All of the hard work of advancing up the first two rungs of the Entrepreneur Ladders begins to pay off.
Level three -- owner
Congratulations on reaching a milestone in your entrepreneurial career. Advancing from level two to level three requires competent leadership and a mindset change regarding money. This is where we move out of having a job. Instead of making money by taking a wage, we receive profit. Few reach level three. You have every reason to be proud.
Your greatest focus and task as a level three owner should be to continue to develop your leadership skills and the leadership skills of your most promising team members. This will assure the continuity of growth essential for empowering you to move to the next rung on the e-ladder.
Learn to let go
At the owner level we need to learn to let go. We have systems in place running our business and a dream team running the systems. It is our job to take care of our team and to be the pilot of the ship, looking ahead to avoid unforeseen pitfalls and thinking strategically about how to best grow the business.
Be pleased, but beware. Significant risk exists at this level that you might stop forging ahead. This is dangerous because if the business is not growing, it begins dying. As an owner/leader we have more time and money on our hands than ever before.
A new life
Owner/leaders experience a massive mindset shift when they first move up to this level. They operate on an entirely different level than when they were at the manager level. They receive passive income. Many times, they reach the point where it does not matter if they get out of bed. The business runs without the owner being there. Now it's time to operate totally on the strategic level, concentrating on the big picture. Our focus is no longer on cash flow. It is on profit.
At this level, we can be semi-retired. As a result we no longer trade time for income. We work smarter on our business. Our income is a function of the profit the business makes, not the amount of time or effort we invest. Owners receive income from the profits of their asset -- their business.
A compelling reason to be an owner is the passive income stream it provides, and the better lifestyle. You are more relaxed without the daily pressures of managing a business. You can concentrate more on your health and time with your family.
You have time to also learn that there is a bigger game out there to be played. You can be more involved in business organizations. You will be exposed to concepts, ideas and opportunities that you never would have as a level two -- manager. You can begin to learn to become a savvy investor, which is the next rung on the e-ladder. Join me next week when we explore the second rung from the top -- level four investor.
Rob Garibay is a local business owner and business coach with 30 plus years of business experience. Forward your business questions to 573-6537 or robgaribay@actioncoach.com.
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