Transcript: Hello. In today’s video I’m going to talk to you about how to be successful as an entrepreneur.
I’m Doug Barra and this is business success with Doug Barra.
So one of the things about creating success as an entrepreneur is to understand the entrepreneurial ladder. So what am I talking about with an entrepreneurial ladder? Well the entrepreneurial entrepreneurial ladder starts with, basically, as a student. A student is below the first rung, it’s where we all start. And the first couple of steps on the entrepreneurial ladder are actually dictated by society. We all start as students. We all start in school. And what’s the job of being in school? The job of being in school is to learn how to learn, it’s to learn problem solving skills.
Once we’ve gone through that stage then we go to the first rung of the ladder, which is an employee. We all get that first job. It might be a job where we go out and do odd jobs for others. I remember, for myself, my first job really was doing odd jobs for other people. And I actually enjoyed doing that. I learned lots. I mean I learned things that I’ll never use, but I learned them. And, I learned how to do lots of different things that have served me over the time. I mean I learned how to do things like put in sprinkler systems, polish floors, re-tar a driveway. I mean all these things that I would never actually use, but it did teach me how to be an employee, how to get the job done and that’s a lot about what we’re doing as an employee.
Now, a lot of times people think well I’ve been in business doing the same thing for 30 years, therefore I should be really good to go out in business for myself. Well unfortunately that’s not actually the case in the world of being an entrepreneur. In the world of being an entrepreneur that would be like having one year’s worth of experience 30 times! In the world of entrepreneur, when we’re an employee, we want to actually have as many kinds of positions as you possibly can.
I was a dishwasher. I was a a line cook. I sold greeting cards door to door. I’ve done a lot of different things before I went into being an entrepreneur.
Now, once we learn all of that, then we move up to being self-employed. Now self-employed is where you are the business. It is all about you. You do most if not all of the work.
All right. Even if you have people that are working for you you’re doing most of the work. If you are not there, the business stops. This is what it’s like to be a self-employed person. Now self-employed is critical because we learn how to be in business. We learn how to have a business. We learn how to take care of our customers. Unfortunately, it’s also the biggest struggling point of being an entrepreneur and learning the entrepreneurial ladder, because this is the point where you’re totally overwhelmed. You’re trying to make it all happen. And a lot of times, people from this place go: “Ah! I just can’t do this. I’m just going to go out and get a job.” Now, for some people that might be OK, maybe they prefer to be an employee. But, if you’re committed to being an entrepreneur, then this is the point where you start to learn how to delegate. This is the point where you start to learn how to go from that step of being Self-employed, to being the manager. Now you might have thought well wait a minute, I would go from self-employed to being a business owner. Well not really. And I’m not necessarily talking about being a manager in a business. Although you might get there that way. Right. Working for somebody else. But as a manager this is where you start to learn how to delegate properly. How to have people actually take over stuff for you and do it effectively. You need to learn delegation. You need to learn measuring, accountability, how to actually make it happen that once someone takes a task that that task gets done properly. OK, a lot of times lately I think we’ve collapsed leadership and management because they are not the same thing.
Management requires that you actually get people to produce results. All right. You could be a great leader but not a good manager. And there’s where the the problem lies. Because a lot of people skip over that manager place and they try to go straight to being a great leader. And yes being a great leader as a manager is useful. But you absolutely have to be able to do the management. You have to understand how to manage people.
Once you understand how to manage people then you can move into the business owner rung of the ladder. This is where you’re actually starting to work on the business, not just in the business. You’re not just managing people you’re leading them, you’re seeing the vision, you’re looking for where you’re going. You may even higher managers at this point to start to take care of managing your people. And this is where you truly have to have your vision, your mission. You truly have to understand where you’re going and inspiring your people on getting their.
Once we have that managed then we can think about moving up the entrepreneurial ladder. A lot of people think well if I’m a business owner I’m an entrepreneur. Well no! An entrepreneur has other kinds of ways that they’re bringing in income. They might have additional businesses. So you have to go from business owner to investor and an investor is someone who’s now starting to go outside of their business and invest in other ways of bringing in money. As an investor you’re now looking out there as to where. You can have your money work for you and you can start to invest in other businesses, in real estate, in stocks whatever it is that works for you to invest in. This is how you can start to expand that and start to take yourself to that investor level.
Only once you start to really have it working that not only do you have a or several businesses that are bringing you cash flow but you have investments that are simply making you money from your money. Then you can start to move into the entrepreneur level of the ladder. Now entrepreneur is where you actually have other people’s money working for you.
Now, I know this is the place where you start to go: “Oh man, that’s awesome! I would love to have other people’s money working for me.” But, keep in mind, unless you understand how to manage your own money, no one else is going to let you manage their money. And I don’t mean manage their money from the place of oh I’m a stockbroker. I mean manage their money in the sense that they’re going to invest in you, in what you’re going to create, because they know that you can create it. You’ve done it. They’ve seen it. You have a track record for making that happen. That’s when you truly get to the place where you’re making money with other people’s money.
And that is being an entrepreneur.
Thank you so much for listening. This is Doug Barra with ActionCOACH business coaching and I look forward to seeing you in my next video.