What Is Your Biggest Challenge Changing From Employee To Entrepreneur?

by DrMeg
19 replies
Millions of people view the Warrior Forum and other forums dedicated to individuals who are working to change their lives from a life of working for someone else, making other people money, to becoming their own boss and launching their own entrepreneurial enterprise.

However, the journey that we take, in changing our daily perspective and behaviors from being employees to being entrepreneurs and our own business owners, is so different for everyone.

For some people they make that transition from employee to entrepreneur in literally a matter of weeks or a few months. For others it takes years and for some they can never quite make the transition.

So my question for us today is....what is so hard about changing from an employee to an entrepreneur?

Why is there a statistic that is often quoted that says only 5% of everyone who tries to be successful as online marketers makes it.

What do all you warriors think? What was hardest for you (or still is) as you change from employee to successful entrepreneur?
#biggest #challenge #changing #employee #entrepreneur
  • Profile picture of the author ryanbiddulph
    Hi Dr. Meg,

    Not having a steady paycheck each week was the biggest challenge for me.

    I had to leave the "get paid at the end of the day" mindset behind. In the beginning, if I didn't receive an opt-in or sign-up in one day, I'd flip. It was as if the world ended, for I was under deep financial strain and burned all my bridges. Gradually I came to release on this wicked attachment.

    If I had to do it all over again of course I wouldn't change a thing for if I didn't burn my bridges - making my businesses my 1 and only income generator - I never would have adopted the strong drive to succeed that I have now.

    To the newbies out there if you feel you have the strength to do so burn all bridges. Adversity fuels a fire that prosperity could never form.

    Thanks for sharing and have a powerful day!

    RB
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    • Profile picture of the author DrMeg
      Originally Posted by ryanbiddulph View Post

      Hi Dr. Meg,

      Not having a steady paycheck each week was the biggest challenge for me.

      I had to leave the "get paid at the end of the day" mindset behind. In the beginning, if I didn't receive an opt-in or sign-up in one day, I'd flip. It was as if the world ended, for I was under deep financial strain and burned all my bridges. Gradually I came to release on this wicked attachment.

      If I had to do it all over again of course I wouldn't change a thing for if I didn't burn my bridges - making my businesses my 1 and only income generator - I never would have adopted the strong drive to succeed that I have now.

      To the newbies out there if you feel you have the strength to do so burn all bridges. Adversity fuels a fire that prosperity could never form.

      Thanks for sharing and have a powerful day!

      RB
      Thanks Ryan,

      I think you are so right about burning your bridges or closing down exit strategies. I think to make that commitment that you and you alone are going to generate the income that you have to have to pay the bills and don't allow yourself to depend on that paycheck....that is a huge step for people.
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  • Profile picture of the author JustinP
    This is a great thread. You asked a good question. I liked Ryan's answer too.

    I will add my perspective as someone who walked away from a high paying corporate job to pursue my dream of building my own business.

    The biggest challenge when going from employee to entrepreneur is making the proper mental switch. When you are an employee, your belief system says that you should be compensated X amount based on the number of hours worked. It is predictable. If you work 40 hours, you can expect 40 hours pay.

    As an entrepreneur, this belief system gets shattered. You are compensated entirely based on results. The results of your ability to sell yourself, your business, your brand, your value. You can work weeks on end and see NO money in return. But you cannot calculate it as a loss. You must calculate it as an investment into your abilities.

    Being an entrepreneur toughens you. I think many people in North America are spoiled and don't truly appreciate the comforts they have. I know because I was guilty of it. After losing my salary and then investing all of my money into my business, I appreciate EVERYTHING so much more now. I appreciate the money I earn more than ever before. I also feel much better about the money I earn because it comes from a passion. When I was earning money in the corporate world, it was ONLY income to me and I got no personal satisfaction out of it.

    Having fought the entrepreneurs battle and come out on the winning end after 3 years, I can tell you that I have ALL the respect in the world for people who have built huge successful companies. The odds to do what they did were stacked WAY against them.
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    • Profile picture of the author DrMeg
      Originally Posted by JustinP View Post

      This is a great thread. You asked a good question. I liked Ryan's answer too.

      I will add my perspective as someone who walked away from a high paying corporate job to pursue my dream of building my own business.

      The biggest challenge when going from employee to entrepreneur is making the proper mental switch. When you are an employee, your belief system says that you should be compensated X amount based on the number of hours worked. It is predictable. If you work 40 hours, you can expect 40 hours pay.

      As an entrepreneur, this belief system gets shattered. You are compensated entirely based on results. The results of your ability to sell yourself, your business, your brand, your value. You can work weeks on end and see NO money in return. But you cannot calculate it as a loss. You must calculate it as an investment into your abilities.

      Being an entrepreneur toughens you. I think many people in North America are spoiled and don't truly appreciate the comforts they have. I know because I was guilty of it. After losing my salary and then investing all of my money into my business, I appreciate EVERYTHING so much more now. I appreciate the money I earn more than ever before. I also feel much better about the money I earn because it comes from a passion. When I was earning money in the corporate world, it was ONLY income to me and I got no personal satisfaction out of it.

      Having fought the entrepreneurs battle and come out on the winning end after 3 years, I can tell you that I have ALL the respect in the world for people who have built huge successful companies. The odds to do what they did were stacked WAY against them.
      Justin your response is full of gems!

      I so agree with your statement about how when one transitions to online entrepreneur our employee "...belief system gets shattered". I think this is huge for people making this transition because belief systems, mindsets, cognitive maps, whatever we call it, the way we think automatically, is our reality and when we try to change our reality, our brains literally fight us to keep us in our comfort zone!

      Your comments about how the transition to entrepreneur's life and success toughens one and how we as employees in North America are somewhat spoiled and get into what I call "entitlement" thinking is right on!

      I'm about 16 months into this online entrepreneur journey and your insights and comments on this have really encouraged me. Thanks brother Warrior!
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  • Profile picture of the author scortillion
    As an employee you have a steady income you know that every payday you’ll have a pay check.

    As an entrepreneur you’re never sure what each week will bring. You must change your focus and your attitude. You must decide that you are going to make it and plan on what you are going to do to make it.

    Keeping yourself positive it probably number one followed by always learning and improving on what you build.
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    • Profile picture of the author StephanieMojica
      For me it has been delegating administrative tasks to virtual assistants, and accepting that I don't have to become a master web designer to make money online.

      Great topic!

      Peace, love, happiness, and prosperity,
      Stephanie
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      • Profile picture of the author naruq
        The Biggest Challenge That People Face Is Their Mindset. An Entrepreneur Has A Different Mindset Than An Employee. It does not make the employee a bad person. I have employees and I am grateful for my employees. They have made major contributions to my offline Businesses. Most employees want to do a good job and get a paycheck every week or two weeks and enjoy the weekend. An entrepreneur does not have set hours. An entrepreneur will work as long as they have to to get the job done.
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  • Profile picture of the author AwesomePossum
    I think there's a few key factors that make the transition tough.

    #1: As entrepreneurs we're paid for value not work...If people don't think our product is worth the price tag we won't make money and it doesn't matter if you spent a thousand hours developing it.

    #2: Time management and making online business a part of every day life is HUGE...

    #3: Mindset...people kind of have to sit down and believe they can make the transition as well as have the dedication to commit to making a living online.

    #4: FOCUS..probably our biggest disease in making a living online is overwhelm...we're left with thousands upon thousands of ways to make money online so it's kind of hard to pick just one way to make money and stick with it.

    Hope this helped some...

    I picked four which is a lot but I don't know how to pick one...I guess #1 most important would be focusing on just one idea until completion an #2 would be time management...

    Aaryn
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    • Profile picture of the author DrMeg
      Originally Posted by AwesomePossum View Post

      I think there's a few key factors that make the transition tough.

      #1: As entrepreneurs we're paid for value not work...If people don't think our product is worth the price tag we won't make money and it doesn't matter if you spent a thousand hours developing it.

      #2: Time management and making online business a part of every day life is HUGE...

      #3: Mindset...people kind of have to sit down and believe they can make the transition as well as have the dedication to commit to making a living online.

      #4: FOCUS..probably our biggest disease in making a living online is overwhelm...we're left with thousands upon thousands of ways to make money online so it's kind of hard to pick just one way to make money and stick with it.

      Hope this helped some...

      I picked four which is a lot but I don't know how to pick one...I guess #1 most important would be focusing on just one idea until completion an #2 would be time management...

      Aaryn
      Hey Aaryn,

      Thanks for your insights....I think these are THE 4 primary challenges we face in this life transition and people get hung up on one or multiples of all of these.

      I find myself bouncing back and forth between getting stuck on all four! I agree that we need to pick one venue for making money, focus down on that one idea, work every day on it until it is profitable and then and only then decide if you want to "rinse and repeat" or try another path.

      Also I think as "recovering employees" we fool ourselves that we are "working" when all we've done is write just one article or blog post, or made one sale, that we can "take a break". As entrepreneurs there are no breaks until we hit our larger income goals and the income has become steady enough that we can take a breath. I think we have to be relentless until we reach our larger goals.
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  • Profile picture of the author jborjaperez
    An Entrepreneur should have the qualities of both. While transitioning, The biggest thing about being an entrepreneur is that it takes a lot of WORK just like being an employee, but the payoff can far exceed what a job gets you, and isn't proportional to the hours worked, but the quality of work put in.. And an entrepreneur is always thinking of ways to expand and scale up the business while providing the best services/products they can..

    Have the Work Ethic of an Employee, but the mindset of an Entrepreneur.

    I'm just trying to paraphrase notes from a multi-millionaire I had the privilege of being with on many occasions. I'll try to repost what he said.. These are just what I remember..
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    • Profile picture of the author DrMeg
      Originally Posted by jborjaperez View Post

      An Entrepreneur should have the qualities of both. While transitioning, The biggest thing about being an entrepreneur is that it takes a lot of WORK just like being an employee, but the payoff can far exceed what a job gets you, and isn't proportional to the hours worked, but the quality of work put in.. And an entrepreneur is always thinking of ways to expand and scale up the business while providing the best services/products they can..

      Have the Work Ethic of an Employee, but the mindset of an Entrepreneur.

      I'm just trying to paraphrase notes from a multi-millionaire I had the privilege of being with on many occasions. I'll try to repost what he said.. These are just what I remember..
      Excellent ideas! I so agree with the "Have the work ethic of an employee and mindset of an entrepreneur" How true.

      I think when people come into Internet Marketing for the first time and for many months as newbies they are sent mixed messages. So many products are pitching this idea of making money on autopilot....so newbies get this impression that there is a magic tool out there that will help them work a couple of hours a day and rake in the dough.

      I do believe that once you develop your businesses infrastructure and have reached a level of success you can put some stuff on auto pilot but I think any successful business person is going to be working all the time? But since we love this stuff and have creative minds with so many ideas is it really "work"?
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  • Profile picture of the author tandren544
    The transition time.

    It's so difficult to transition from employee to entrepreneur because I have to be both at the same time!

    I still have my normal 9-to-5 responsibilities plus all of this IM stuff on my shoulders too? Wow, it can be a lot.

    Luckily I'm not quitting this time.
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    • Profile picture of the author jborjaperez
      Originally Posted by tandren544 View Post

      The transition time.

      It's so difficult to transition from employee to entrepreneur because I have to be both at the same time!

      I still have my normal 9-to-5 responsibilities plus all of this IM stuff on my shoulders too? Wow, it can be a lot.

      Luckily I'm not quitting this time.
      Yes sir. That's how it starts but if you ever start to lose motivation for IMing, use your job as motivation to get out of the rat race!! Also invest into your business! I have a part time job just to pay for small things.. but just trying to break through dollar a day barrier.
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  • Profile picture of the author Eager2SEO
    I would have to say time allocation. As an employee your employer structures you, delegates work and sets goals. In almost any job are essentially their virtual assistant and just do what you are told. Some virtual assistants may do keyword research and thinking, but they are still given pointers and deadlines. Then again, that is the risk/reward tradeoff. You leave a job at 5PM, and you don't have to think about it anymore. Not the case with with your own business!
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  • Profile picture of the author John Rogers
    My transition was delayed due to the amount of time I had invested in my career. By the time I'd embraced the concept of going it alone, I was too close to retirement eligibility which included a pension and medical insurance. From what I've seen, the further along you are in life, and the more you have to lose, the harder it is to make the transition. I invested a lot of time in my exit strategy from a fairly lucrative career that I could have continued if I'd chosen. I left exactly when I wanted and the transition was actually much easier than I had anticipated.

    John
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    • Profile picture of the author swilliams09
      Time and Time management.

      I'm straddling the fence between a full time employee and a part time entrepreneur. And it's just not enough hours in the day. I'm not at a point where I can start outsourcing some things and so its just not enough time to do everything that needs to be done nor the resources to do it all.

      It's one of those things that takes time and can get frustrating. I know a year from now I will be able to have a team around me the way I want and the cash flow to pay them, but for right now the main goal is to make sure I don't burn out with these 14-16 hour days.
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    • Profile picture of the author DrMeg
      Originally Posted by John Rogers View Post

      My transition was delayed due to the amount of time I had invested in my career. By the time I'd embraced the concept of going it alone, I was too close to retirement eligibility which included a pension and medical insurance. From what I've seen, the further along you are in life, and the more you have to lose, the harder it is to make the transition. I invested a lot of time in my exit strategy from a fairly lucrative career that I could have continued if I'd chosen. I left exactly when I wanted and the transition was actually much easier than I had anticipated.

      John
      This is exactly where I am in my transition John and you raise some good points. I think the issues that face the older employee making this transition are very different from someone in their twenties or even thirties going through this. I like the point about investing time in an exit strategy. Perhaps if a person understands they are going through a significant life transition and lays out an explicit road map with time lines etc... it could help more people be successful at this huge change.
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  • Profile picture of the author Rukshan
    Risk is a core factor when we have that transition period. Because we have a guaranteed monthly salary as an employee. But it would be a fixed one. In that time we have to take a risk to make more by own business. So I believe getting risk as a big challenge.
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    • Profile picture of the author DrMeg
      Originally Posted by swilliams09 View Post

      Time and Time management.

      I'm straddling the fence between a full time employee and a part time entrepreneur. And it's just not enough hours in the day. I'm not at a point where I can start outsourcing some things and so its just not enough time to do everything that needs to be done nor the resources to do it all.

      It's one of those things that takes time and can get frustrating. I know a year from now I will be able to have a team around me the way I want and the cash flow to pay them, but for right now the main goal is to make sure I don't burn out with these 14-16 hour days.
      I hear you about the 14-16 hour days and have recently been questioning how long I can keep this up! I think I need to invest some of that time into getting much clearer and exact in mapping out my exit strategy goals, like John said in his post above.

      It is helpful knowing we aren't alone and so many other successful IM entrepreneurs went through what we're experiencing now.

      Originally Posted by blog8491 View Post

      Risk is a core factor when we have that transition period. Because we have a guaranteed monthly salary as an employee. But it would be a fixed one. In that time we have to take a risk to make more by own business. So I believe getting risk as a big challenge.
      Taking that risk is probably what really sorts out the true entrepreneurs! That's why quitting jobs and burning bridges is probably a path that leads to quicker success...yet it is also the most risky path.
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