Do You Own a Business or a Job?
Warning!! You may think you own a business but in fact just have a really difficult job!
Here’s the test. If you quit working, does your business continue to work without you? If it stops working when you do, then you have a job. There is nothing inherently wrong with being self-employed, but it is different than owning a business. If self-employment provides enough money to live on and invest so that you can attain your life goals, then all is well. That is one way to do it. You will likely work long and hard hours for many years, and if you are profitable and frugal, it might provide all you need and want.
However, I have met few self-employed people that are on track to have what they want. Most of them are under an illusion that they own a business, when in reality they have a JOB (Just Over Broke). They work long and hard, but seldom have enough to even to comfortably pay their bills. Vacations don’t typically happen. Debt is often an issue, and when the tax man cometh, they are usually in trouble.
There is a better way. Here are the first steps to freedom:
Step One: Get real with what is happening.
Most small businesses fail. Unless you are an extremely profitable sole proprietor with financial clarity, you are in trouble. You need help.
Step Two: Get clear on your financials.
Your ignorance about cash flow, equity, owner’s draw, W-2, receivables, payables, payroll, bookkeeping, sales tax, accrual-based accounting, profit break even, and a host of other accounting basics has you trapped. You don’t have to be a CPA, but you MUST find a great accountant and learn basic finance as it relates to your business and life.
Step Three: Create a real business plan.
I’m not referring to the typical business plan used to get a loan. I’m talking about a real plan that includes a vision and the steps to make that vision a reality.
These first steps provide a way for you to break the inertia of self-employment and begin creating a business that can eventually produce the wealth, joy, and life you want for your family. I can help you. Drop me an e-mail, and we’ll set a time to talk.