Since 1988, I’ve run my own company and frequently encounter individuals expressing a desire to start a business. When I inquire about their motivations, common responses include desires for flexible hours, increased earning potential, and freedom from supervisors. My advice is always tempered with a dose of reality: owning a business demands a profound understanding of its true nature.
While business ownership offers the autonomy to manage one’s schedule, it doesn’t equate to unlimited leisure. Most business owners dedicate more hours to their work than their employees. As the owner of a medical device manufacturing company in San Antonio once told me, he enjoys the freedom to leave work whenever he pleases – after completing his 80-hour workweek.
The pursuit of financial independence is a valid aspiration for entrepreneurs. Tom Stanley and William Danko’s “The Millionaire Next Door” highlights that self-employed individuals are four times more likely to achieve millionaire status compared to those in traditional employment. However, aspiring entrepreneurs should remember that success often follows setbacks. For every triumphant figure like Henry Ford or Walt Disney, there are countless business owners struggling to make payroll.
While owning a business significantly increases the odds of becoming a millionaire, it also increases the chances of earning less than minimum wage. I advise those who believe business ownership will automatically unlock their true earning potential to consider the possibility that their perceived worth might be less than they anticipate.
Although business owners lack a direct supervisor, they remain accountable to various stakeholders. These include creditors expecting timely payments, customers with high expectations, and, at times, a spouse questioning the lack of financial progress despite long working hours.
Popular media often portrays an unrealistic image of business owners. The depiction ranges from the greedy banker Mr. Potter in “It’s a Wonderful Life” to the ruthless nuclear power plant owner Mr. Burns in “The Simpsons.” However, business ownership is not about relaxing in a leather chair while others generate wealth. It’s about assuming responsibility for all tasks, regardless of the job description. Successful individuals adopt an owner’s mindset, proactively addressing challenges and exceeding expectations, regardless of their official roles.
Employees who do the minimum to get by often limit themselves to their explicit job description. Progressive companies add “…and all other duties as needed” to job descriptions, but those who thrive in their careers do not need to be told what to do. They do whatever needs to be done, whenever it needs to be done, without being asked. They act like they own the place.