We are all business owners…
What does it mean to be a business owner? How do we define what a business is?
When people ask me what I do I tell them that I’m self-employed. The truth is we are all running a business. What do I mean by that? A business brings in money we call revenue. It also costs money which we refer to as expenses. When we subtract our expenses from our revenue then we arrive at what is called net profit or positive cash flow.
Ideally, one would try to maximize my profit by increasing revenue and or decreasing expenses. In that sense, we are all business owners. Even if you’re employed by a company you still have revenue, your income. You still have expenses, your car, gas, clothing taxes, etc. And you still have a net profit; your income minus your expenses.
It might not seem this way but you are in fact in the business of being employed by someone else. For this very reason, I suggest that everyone treat their work lives as if they are running a business. The very same rules that apply to running a successful business as a business owner apply to employees of a business also. Whereas a business owner might expand their products and services offerings, purchase marketing, or work to streamline their business to increase the bottom line, so too can an employee increase their bottom line.
Whether you want to pursue a higher level of education, achieve a certification, or work harder you can add to the value you bring to your employer which should result in higher compensation. Typically a business owner has more skin in the game when it comes to maximizing the profitability of their business than an employee might. But, if an employee approaches their employment as if they were running a business, they could, in turn, be more invested in the success of the business and therefore participate more in the probability of the business.
All business owners and employers what their employees do you have skin in the game. The more an employee adds value to the business they work for the more profitable a business will become and the more likely the owners of that business will be to reward those who increase the bottom line.
So, the next time you feel unappreciated or under-compensated by your employer. I would suggest that you approach your job as if you are an owner of that business. In most cases, this will result in higher compensation, better morale, and a sense of accomplishment instead of feeling like you’re just a number.