The majority of my clients tell me they started their business because it is what they know, or liked, or were somehow interested in.  In many cases, they were employees plying their trade and thought that starting their own shop would enable them to earn the BIG bucks being earned by their boss.

I do a lot of remodeling on my house.  One of the last tasks in the project is installing the finish trim around doors and windows.  I can do this.  I have a sweet compound mitre saw, an airless trim nailer, and a tape measure.  When I’m done, the project looks pretty good.

But I’m not a finish carpenter.  Not by a long shot.

How many of you began your search for a business to own by asking yourself what business ownership would mean to you?  Did you ask which business would enable you to manage financials, deal with HR issues, write marketing plans, address cash flow issues?  Did you look to work/life balance and ask if this business would give it to you?

It’s never too late to ask whether the business you are in has the ability to give you the life you expected when you decided to be a business owner.  If the answer is yes, then put the plan in place to make it happen.  If you answer NO, then suck it up and move on to something else.  The mistake isn’t trying things.  It’s continuing down a road you know won’t take you to your destination.

Okay.  You understand the difference between owning a business and owning a job from my last post.  If you haven’t read it, you should go back and take a peak.  But if you’re in a hurry, here’s the jist of it.

You own a job if your presence is required for the business to function.  Can you take an extended vacation?  If you became disabled for a period of time, would the business be able to carry on?  Think about the electrician who works for himself out of a van.  Even though he is self-employed and makes a good living, he owns a job, not a business.

Owning a business is a different thing.  You may not be there yet, but if your intention is to retire off of the value of your business then you need to extract yourself from the everyday operations.  My definition of a business is, “A for profit entity that operates without you.”  The best buyers for your company want to purchase an on-going entity, a steady cash flow.  They will significantly discount the purchase price, or skip over your business all together, if your employees and customers require your presence.

So, understanding the difference between owning a job and owning a business, you’ve decided that you really want to own a business.  The next step is to decide for yourself just what that business will look like when you’ve finished “building” it.  Like all projects, starting a business will have a beginning, a middle, and an end.  The more clearly you can see the end result, the easier it will be to stay focused on achieving that result.

The answer I hear most often when I talk to business owners about why they started their business is “control.”  Business owners want to have control of their professional lives.  But more than that, they want to have control over their entire life and they see owning a business as the vehicle to give them the control they desire.

Control means different things to different people.  For some, it means that your boss can’t fire you.  It means that you get to keep the difference in money between what the company pays you and what they charge the customer for the services you provide.  Control means financial security, and control over your own destiny.

For others, control means you can take the time you want to be with your family.  It  could mean coaching your daughter’s slow-pitch softball team or being able to get to your son’s third-grade school play.  Maybe you’re an avid hunter needing a lot of time off every fall.  Your kid may be a division one athlete and you want to travel to all of his games, or your mom is getting older and needs you to help her out.

You may see owning a business as the vehicle that enables you to pursue a hobby, support a charity, or leave a legacy.  Or maybe like the namesake of the movie, “Tommy Boy,” if you don’t hire your screw-off son, nobody else will!

Owning a business is one of the most difficult endeavors you will undertake.  You’ll face a multitude of challenges, sometimes all at once, that might ruin everything you’ve worked so hard to build.  In addition to your family, you’ll have the families of your employees looking to you to operate your business successfully so that they will have a secure job and a steady paycheck.

Regardless of the reason that is motivating you to own a business, be clear about what you want that business to give you when it is “done.”  Write it down, draw or find a picture, and keep that end product in front of you every day.  The more vivid and compelling you can make the reason for taking on the task of beginning, operating, and growing a business, the easier it will be for you to stay on track and achieve your definition of success.

Though it is difficult, owning a successful business is one of the most rewarding experiences you can have.  A clear understanding of what you’ll realize for all of the sweat and tears that you’ll put in to get there will keep you motivated.  You’ll know when you’ve arrived only when you know where the destination is.

Good luck.

Do you own a business or a job?  Do you know the difference?

I define a business as a for-profit enterprise that earns money without you.  It’s like owning stock.  You own the company but the means of production, the generator of revenue, are your employees.  Paul McCartney said it best when he said you’ve got a business if you’re making money while you sleep.

Most small business owners go into business for what their business does.  He was an employee somewhere making $20 an hour and saw “the boss” billing out the employees’ time at $100 an hour.  He’s the most productive, hard working employee at the company.  Maybe he’s an auto body repair guy, a mechanic, or a finish carpenter.  Maybe she’s a professional; a chiropractor, or an attorney.  It really doesn’t matter.  He goes into business for himself because he’s really good at what he does and deserves to make that extra $80 per hour.  That business stuff?  Anyone can balance a checkbook.

How many business owners sit down and say, “I want to manage financial reports.  I want to deal with HR issues.  I want to market, to sell.  I want to address cash flow problems and try to minimize taxes.  Given my interests in managing a business, what is the best business for me to own that will enable me to do the things I want to do?”

Ridiculous, you say?  But this is what managing a business is all about.  I can put mouldings around an interior door in my house, but I’m far from a finish carpenter.  Just because you’re an excellent seamstress and decide to open a dress shop, doesn’t make you a business manager of a dress shop.

Give yourself credit for being a skilled professional at what you do.  Accept that you are not as proficient at managing the business of what you do.  Once you admit this, then you can get the training and development you need to achieve the vision you had of owning a business when you made the entrepreneurial leap.