This week we wanted to review the concept of the entrepreneurial ladder. When most people start their own business they typically are buying a JOB. They think they can do it better then the person they worked for or the previous owner and some times better than a family member who had run the company before.
You’ve heard the saying, “Be careful what you wish for…” Owning a company can be stressful, keeping you up at night wondering how you are going to make payroll. We sometimes refer to the JOB of the new owner as “Just Over Broke”.
As the business grows, the employee owner hires some additional staff and moves up the ladder to become a manager. Now they have the challenge of working through others and letting go. As the company continues, this person becomes the owner and works with several managers to build the company.
In time, the managers come to run the company and you truly are becoming an entrepreneur. You can now look to expand or even run other companies. After you have completed this stage successfully you can become an investor and live off of the passive income your companies generate.
In coaching, when working with business owners, it is common that they wear two hats; one as the manager and one as the investor. My question today is, “If you were an independent investor evaluating your performance as a manager, what advice would you give yourself? Are you doing what needs to be done to get the company to grow or should you as an investor consider either firing you or preferably demanding a higher level of performance?” You choose.
If you have trouble answering either of these questions, then give us a call so that we can help to bring clarity as to what you need to be doing as the key manager in your business. Lighthouse Strategic Partners 508-946-2655.