In the previous post, I mentioned a book that completely changed my perspective about working for someone else verses being in business for yourself. The second book series by Robert Kiyosaki titled, “Cash Flow Quadrant” goes into details about the different quadrants of how people earn money and it discusses the importance of shifting from the left side of the quadrant (where your income is dependent on your time) verses the right side of the quadrant (where your income is leveraged and you earn income irrespective of the time you put in). This requires making that transition from being an employee or self employed individual to being a business owner or investor. As simple as this may sound, it is quite difficult to make that shift if you are unaware of what to expect . So I thought it may be useful to highlight a few things so you have a better idea of what to expect as you work towards making that shift.
1) Mindset
I believe the biggest difference between the left quadrant (employee and self employed) to the right side of the quadrant (business owner and investor) is the way that they think and the words they use. Employees use words like, “benefits and security” and what drives them is fear. Those that are self employed use words like “Do it yourself and be your own boss.” On the other hand, business owners discuss creating business systems that can run without them being physically present. Investors talk about leverage i.e. using their money to make more money. As you make that transition, it is important to shift your mindset from thinking of money as a means of survival to the mindset of using money as a tool to put systems in place to generate additional income.
2) Immediate verses delayed gratification
As an employee, you put in your time and you are immediately rewarded for the time you put in. As a business owner, you are paid based on the value you provide to your customers. You may not get paid immediately and that may result in frustration and disappointment because you may not see results as quickly as you may like. So hang in there are keep working your plan. Results are inevitable.
3) Skill/ Knowledge/Experience
We all come into businesses with different experiences, knowledge and skill levels. For some, they start a business right up and hit it out of the park. For others, it may take some time to learn and develop the skills needed to move forward. It is important to map out and identify the skills you need to make it work. Don’t make the mistake of spending a huge amount of your time just learning the information without applying it. Just take action.
4) Time commitment
You initially decided to start your own business with the goals of a better lifestyle and greater time flexibility. Keep in mind that starting a business will take initially take hard work and time. Avoid being overwhelmed by being a master of planning and time management. Having these skills and working your plan will make the transition much easier.
5) Accountability
As a business owner you also need to get used to getting things done without someone looking over your shoulder. If accountability may be a problem, hire a coach or join a mastermind group. The accountability would be useful in moving you forward towards your goals.
Lastly, keep in mind that you can slowly make that transition by testing the waters by starting part time. This can offer you a leg up in getting the ball rolling.
Now you know what to expect. Try not to make the process too overwhelming. Take the necessary small steps in making that transition smoothly to being that big time entrepreneur.
Are there other key traits that you would highlight as being important in making the change from employee to business owner?
