Last week I introduced the concept of the Entrepreneur Ladder, or e-ladder. I outlined the reasons to aspire to climb the e-ladder and discussed the role that being an employee should play in preparation for the climb. This week I will present to you my thoughts about the first rung of the e-ladder, that of being self employed. This is part two of a many-part series on the topic of: Are you where you want to be on the Entrepreneur Ladder?
Rung level of Entrepreneur Ladder
Entrepreneur: Five
Investor: Four
Owner: Three
Manager: Two
Self Employed: One
Employee: Zero
Level One -- Self employed
This is usually the first rung on the e-ladder and, for most; it is the only level reached. Many seem to be unable to grow past this level. We truly can't call it a business; it's really a job. When you consider the amount of hours vs. income, this job is probably one of the worst jobs in the world. I think it is put best by this quote, taken from one of Brad Sugar's (founder of ActionCOACH) seminars: "Most people think they work for an idiot until they start their own business -- then they know they work for an idiot."
Reasons to be on the self employed rung
There are eight powerful reasons for being self-employed -- reasons that, simply put, are a must if we are serious about advancing into the ranks of the financially independent. We learn about:
· Company structure
· Accounting (get an accountant)
· Sales and marketing
· The meaning of hard work
· Cost containment and reductions
· Making contacts
· Responsibility and accountability again and again
· Technology
Plus we have the pleasure of working more hours than we thought possible and studying after hours. Just as when we were employees, we still have no true leverage; we find ourselves simply trading more time for (hopefully) more dollars.
Most never move beyond this step on the ladder. As long as you can only see yourself running a one-person business, you will never be anything more. To advance beyond the self employed rung on the e-ladder, think of yourself as a builder of businesses -- creating a legacy. Think big. Also, realize that there are lessons to be learned at each rung, such as systems, team building, leadership and recruitment, to prepare you to advance to the next.
Taking the first step
Draft a detailed business plan. Set goals that stretch you. Surround yourself with mentors who have successfully climbed the e-ladder. Tap into one of the local entrepreneurial support organizations like NEDC (Norman Economic Development Coalition), the Moore Norman Technology Center, or the Oklahoma Small Business Development Center (OSBDC). They are great resources for coaching you through business plan development.
For help in startup funding of your enterprise, start with your local bank. There are also many resources within Oklahoma for assistance with larger capital needs such as i2E, Love's Entrepreneurship Center, and numerous venture capital firms.
Make sure that you create a conservative cash flow projection for the next three years to better understand your startup capital needs. A detailed cash flow projection also will assist in obtaining funding for your business. The moment you are clear on what your business looks like when it is finished (working without you), you'll be on track to achieve it.
Summary
To recap, level one begins your hands-on entrepreneurship education and increasing your ability to make larger income. However, remember, income is not wealth and wealth is not financial independence. It's what we do with our income that determines our wealth. Similarly, it's what we do with our wealth that determines our level of financial independence. Next week, let's look at the next step toward financial independence -- advancing to the rung of manager, the scary step of hiring employees.
MAD
Speaking of the next step, I am hosting a Massive Action Day for all business owners at Arvest Bank, downtown Norman, Oct. 23. The objective of this workshop is to leave with a 90 day plan for accelerating your business. Call or e-mail me for additional information.
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 to robgaribay@actioncoach.com.
Local Business
September 27, 2008
Where are you on the Entrepreneur Ladder? Part 2
- Local Business
-
-
Review: Apple's iPad not just a bigger iPod Touch
SAN FRANCISCO -- After just an hour with an iPad, I came away with a preliminary verdict: Despite some flaws, this is one slick device.
Steve Jobs intrigued me in his slow, showman-like presentation Wednesday when he said the $499-and-up iPad is "so much more intimate than a laptop and so much more capable than a smart phone. -
People in business
Allyson Crank has been named employee of the month at First State Bank's Noble location.
Crank, loan operations assistant/loan teller since June 2008, joined the bank's staff in 2007. A Noble High School graduate, she studied mathematics while attending the University of Oklahoma. -
Norman lawyer goes to the doghouse with beef jerky
Norman lawyer and small business owner Dave Stockwell has been making private label beef jerky for years.
He started off in his garage, but his passion for smoking and curing round steak has led to the occupation of a commercial facility in the Oklahoma City metro area. - Moore passes $2M tax rebate for Target The City of Moore's Economic Development Authority voted unanimously Monday evening to approve a sales tax rebate to Target Corporation, who wants to build a 135,000-square-foot retail store on SW 19th Street west of Fritts Boulevard in Moore.
-
Me? An idiot? Finance titles to raise your IQ
Once you get past the hesitancy of buying a book written for dummies or idiots, you can get some very practical information out of the titles in these series.
Penguin Publishers, provider of The Complete Idiot's Guide series, has dozens of business and personal finance titles. - Claim your e-mail privacy Have you ever read a message on a postcard that was not addressed to you? It was right there, in the open, so, how could it have been avoided? Maybe, at least once in your life, you've held an envelope up to the light, hoping to read its contents.
-
County real estate
Real estate sales of $100,000 and above, as recorded by the office of Cleveland County Clerk, Tammy Howard.
Feb. 8-12
Lot 7, Block 5, Briarwood Creek, $165,000. Buyer, Jason and Lorie Wenger. Seller, Scott and Dawn Hubbard. - Chamber of Commerce, Norman NEXT to co-host candidate forum Feb. 24 The Norman Chamber of Commerce Get Out The Vote Committee and Norman NEXT, Norman's young professionals organization, have announced plans to co-host a candidate forum for the mayoral and city council candidates.
- People in business Michael Mohr, owner of Mohr Construction LLC, has completed the required EPA certified training class in the Renovation, Repair and Painting rules that go into effect April, 2010, dealing with lead base paint removal and handling in buildings built prior to 1978.
-
People in business
DeBee Gilchrist recently announced that Blaine M. Peterson, Norman, has been named a shareholder of the firm.
Peterson's practice encompasses a broad range of business matters, including tax planning and controversies, comprehensive estate planning and business valuation. - More Local Business Headlines
-
Review: Apple's iPad not just a bigger iPod Touch
SAN FRANCISCO -- After just an hour with an iPad, I came away with a preliminary verdict: Despite some flaws, this is one slick device.
