When people set out with an idea, invention, or business what is the actual outcome they are looking for? What is their outcome and the reality of what usually happens are vastly different. Quite often the vision is to create an impact, to make a difference, to live out a purpose or passion. Inevitably it will often turn into a job where everything becomes measured in dollars and cents. That is why and according to the Small Business Administration (SBA), a majority of all businesses will end up failing in the first five years.
Being an entrepreneur and owning a business can be challenging. Many people think that by choosing an entrepreneurial journey it will enable them to work when they want, where they want on what they want. While this freedom is possible and does occur it comes with some strings attached. This is why it is important for a business owner to be investable and to build a business or organization that is investable. Without this value based thinking in place, they can become victim to some common aspects of being an employee to the business:
Compensation
At the end of the day most businesses close, or people walk away from their ideas, because when they compare their earnings to what a steady job would pay them. The breakdown results in very minimal compensation for the amount of work cut out as an entrepreneur. This is why it is so important to have a purpose for what they are doing and a passion for why they’re doing it. It will require persistence and dedication long after the short-term enjoyment has left.
Roles & Responsibilities
When someone takes on the role of being a business owner their duties and responsibilities list is never-ending. Unless they hire someone who they can delegate tasks to, they will become every role in their company. While this may seem like a deterrent it can be a wonderful training field for becoming a great leader. Once the business owner understands and has walked in the shoes of a team member, they now know how to train for that position, how to manage them and create a culture for success.
Chief Revenue Officer
Probably the most important role of the business owner or entrepreneur is that of being the Chief Revenue Officer for the business. This responsibility will ultimately determine the success or failure of the venture. While so many business owners are great at their field and even may have some business Acumen skills, they often lack either the skills or motivation to drive revenue. At the end of the day every other aspect of the business can be running well, yet if there is no money to fuel the machine, the machine will stop.
Therefore, it is important to take the time to grow and develop into an investable business owner with the business acumen and leadership skills to grow the business and create success. Additionally, it is important for the business itself to be investable and have the strategic foundation, structural processes and value mindset for success.
There are many rewards of being an entrepreneur and owning a business and it comes down to two very important things. First, they must love what they do and it will never seem like a day of work in their life. Second, find a way to take time to work on the business or they will spend the rest of their career working in the business.