Business Operator to Business Owner: How to Increase More Freedom as an Entrepreneur
Intro
Why did you start your business? Reflect on this for a few minutes. Think back to when you chose between starting a business or sticking to the status quo and ask what made you take the leap?
In most of my conversations, it comes down to freedom. Specifically freedom of time and money.
Thoughts such as…
“I can do this just as good as that person so I am going to give this a shot” or
“I see my boss making all this money and traveling, so I am going to try this out” or
“I am tired of working for someone else and hanging my shingle”
These are the reasons I love working with business owners. They took a leap of faith and tried something that most people wouldn't imagine.
But I also know that entrepreneurship is rarely how people imagine it. The “freedom” comes from years or even decades of sacrifice.
But even deeper than simply working hard and sacrificing, the business owners who truly achieve that freedom have 1 thing in common…
They eventually shift from being an operator in the business to being an owner.
This blog post will explore these differences and give you practical tips on how to make this shift and bring more freedom back to your life.
Operator vs Owner
When I am talking to a new business owner, they almost always say that they are the owner or founder of their business. Although true, I oftentimes have to explain how they are really more of an operator first, owner second.
Operator- One who manages the day-to-day operations of a business. This individual typically wears multiple hats and takes on quite a bit of responsibility.
Owner- A true leader of an organization. An owner spends their time learning about his/her employees, creating a culture, and looking strategically at the future.
To be clear, both of these roles are extremely important. And most people have to spend a few years at least wearing both hats.
But true freedom comes from letting go of being the sole operator in your business and rising to be the owner and leader of your business.
The reason for this is that operating a business has so many moving parts, which makes it nearly impossible to have the freedom you desire without delegating operations. Certain businesses can operate small and mighty with the owner still being an operator, but they typically have to have solid processes and usually have some sort of ceiling.
I know, this sounds easier said than done. And frankly, it's an ongoing process for this. But lest explore some tips you can utilize to start making this shift.
4 Tips to Make the Owner Shift
- Let the Ego Go
I know, this may be a tough one to understand but here me out. Us as business owners often need a little ego to make it through the valleys of our business. This is often extremely helpful starting out.
But, it can often build to a level where we have the, “Nobody can do this as good as me and I do not need help” mentality. My message to you, its okay to let go of certain aspects of your business to soar to new levels. It doesn't mean you are a failure, matter of fact, it means you are closer to your goal of freedom.
- Be Intentional with your Cash
As a business grows, its easy for the business owner to want to start taking more and more out of the business. And this is often justifiable. After all, you built it and deserve some rewards. The key is find the right balance between keeping money in the business and paying it out to you.
The reason this is so important is because additional cash in your business will give you the flexibility to make strategic decisions. Whether this is buying a competitor to increase profitability or simply hiring someone to take the weight off of your shoulders, cash is going to be your best friend with this.
- Invest in Delegation, Automation and Systems
The key word here is “invest”. If you’ve done a good job at #2, you should have some extra funds available to invest in people, consultants or tech that can help free up your mental and time capacity.
This point goes back to the first one. Before you do this, you must let go of your ego.
- Invest in Your People
If you have overcome obstacles 1,2 and 3, you should have the right mindset and financial position to have some flexibility. Now what do you do with it?
This question comes down to your personal circumstance, but one key area I always talk to my clients about is investing in good people. These could be advisors, coaches or even employees. If you have any worry about anyone leaving you and the impact that would have on your business, sit them down, ask about their goals and dreams and make sure their compensation aligns with that.
Not only will this save you money by not having to replace them, but great people can handle your business while you are gone. Sounds freeing, right?
Summary
Making the shift from operator to owner is a journey that rarely ends. But with the right mindset and decision making, you can put yourself in the driver seat to have that freedom you deserve!
