Do you want to be a business owner or self employed? Your lifestyle depends on your answer!

by N4PGW
5 replies
Do you want to be a business owner or self employed? Your lifestyle depends on your answer!
Most of you came here because you want a better life-style for yourself. Some of you came in hopes of getting some extra cash so you can do something better than mow the lawn for your weekend recreation. But, if you don't know the difference between being self-employed and being a business owner, you could be setting yourself up for failure and not realize what you are doing.

You already know what an employee is. As an employee, you are trading your time for money. Work one day, get paid. Don't work one day, and you don't get paid. Someone else controls, when and if you work and how much you get paid.

You know what an investor is, too. Put money in once, take money out over and over again.
What a lot of people don't understand is the difference between being self-employed and owning a business.

Self-Employed:

Doctors, lawyers, and local shop owners are self-employed. They get a business license, hang a shingle and go to work. Like employees, they go to work one day, get paid for a day, and they don't get paid when they don't go to work. The big difference is that they work for the company they own. If they do well, they make more money than they would as an employee. They are still a slave to their business.

There are lots of jobs available for the self-employed in online marketing. Ghost writers, video production, audio transcription, text transcription, setting up websites, and copy writing to name a few. When you do this kind of work, you work one project, get paid for the project and it's over. In order to get paid again, you take on another project. You are only limited by the time you have to put into it and the price the market will pay.

Business Owner:

A business owner manages a business, but does not work for it. Huh? A business owner is not employed by the business. As a business owner, you spend a limited amount of time setting up a system that continually generates income. If it takes one day, you work one day, but get paid for a year or longer. A lot of online business owners started by being self-employed.

Being self-employed has its advantages, but it also has disadvantages. If, for example, you start a business setting up websites. You spend time marketing, and you get a job. You can setup one website an hour. So, you charge $20/website and earn $20/hour. NOT! Remember, you still spend time marketing. So, in an 8 hour day, you can either setup 8 websites for $160 or spend 4 hours marketing and 4 hours setting up websites for a total of $80/hour. When you setup websites, you get paid, when orders slow down, you spend time marketing so your income is never stable. If you take a day off, you don't get paid.

However, as a business owner, you would setup a system that can produce the same results, but without you having to do the work. In this scenery, you hire a Website Installer who can setup two sites and hour for $10/hour. Now, if your marketing produces 8 website customers per day, you keep $15 each and earn $120 per day on a regular basis. When you take a day off, you still don't get paid.

The next step is to hire someone to market your sites for you. If you agree to pay them $5/sale, and they can produce the same results as you, you earn $80/day, but you are no longer working. Spend an hour a day to manage your business, pay your marketer and installer and you are now up to $80/hour. To increase your income, you can hire additional marketers and website installers.

The final step is to automate the seting up of the sites and paying the marketers. Hire someone to create a script so when someone wants a site, they just fill in a form and make a payment. When they do, the script automatically and instantly creates the site and pays the marketer.

At this point, you can fire the installer and keep $15 of each website for yourself. Now, from the original example of 8 sites per day, you are making $120/day and you are not even working an hour.

Here is where the magic really comes in. The more people find they can make money selling your sites, the more your sales and income will grow. And it is all because you now own a business and are no longer self-employed. You will get paid even when you are on vacation!

If you have your business, then you will want to make plans to automate it. If you are just starting, then create your business plan with automation in mind. You want to move from Self-Employed to Business Owner as quickly as possible.

Buck

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#answer #business #depends #employed #lifestyle #owner
  • Profile picture of the author Andyhenry
    I'm lazy - I don't want the hassle of looking after employees.
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    nothing to see here.

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  • Profile picture of the author Nathy Curiel
    I agree . I am self -employed and own a business. Guess I am doing ok then ;-)
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  • Profile picture of the author sloanjim
    yeah completely agree. Got to move into the business owner segment rather than self employed.
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  • Profile picture of the author Istvan Horvath
    Nice explanation of the bottom-left and top-right squares of the cash flow quadrant
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    • Profile picture of the author Jeremy James
      N4PGW DE KF4QHK 73s.
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