- April 23, 2020
- Posted by: dadmin
- Category: General
Being in lockdown represents such a great opportunity to spend some time thinking about and working on your business. It’s in these quiet times of reflection that one often has the greatest ‘light bulb’ moments. One of the concepts that never fails to trigger lots of ‘light bulb’ moments whenever I present it, is the concept of the Entrepreneurial Ladder which plots the journey from being an employee (where most people start out) right up to being a true entrepreneur (a stage that not everybody reaches) and all the steps in between. Where you are on this ladder will definitely have an impact on how your business is currently affected during this Coronavirus pandemic.
Here are the 5 steps on the Entrepreneurial Ladder:
Rung 0 – Employee
This is where most business owners start. Being an employee is a great thing – it’s where you get to learn and serve your apprenticeship. I was an employee for 18 years before taking that big leap to start my own business. I wouldn’t change a thing – I learnt so much in those years.
Rung 1 – Self-employed
At some point in your life as an employee you decide you are tired of making somebody else rich, you are tired of working long hours for somebody else, you are looking for more money and more freedom so you take the plunge, resign and go on your own. It’s just you to start with. This is the 1st stage of business ownership and quite frankly the hardest. You are on a hamster wheel, you do the work, you get paid, you do the work, you get paid, you don’t do the work, you don’t get paid, you take some leave, you don’t get paid. What happened to all this extra money and time that you had dreamed of? At this stage of the ladder you do not own a business, but rather a job. A lot of business owners will remain here their whole life unless they take the next step. The next step is Manager Level.
Rung 2 – Manager
This is a better place to be – you have gone beyond the 1 man band. You have started to employ some staff and you have started to acquire some assets. You have also started to really take your marketing seriously and you have grown your business. You are still working very hard and are spending the majority of your time working in the business as opposed to working on the business. At this point, you could start experiencing problems with your staff members. They may not be as committed as you or may let you down when you least expect it etc. Why is this? Well you are probably still learning how to BE a leader and manager. Perhaps you haven’t yet shifted your mindset and identity to that of a manager level business owner. Perhaps you are still thinking and acting like a self-employed person. A number of businesses that get to this stage will remain here forever, simply because they do not take the next step which is putting documented systems in place.
Rung 3 – Owner
The business owners that get to this stage have realised one major thing, that businesses are run by systems, and systems are run by people. Not the other way around. When you have put documented systems in place, you have a lot more consistency in your business. You are also on the way to building a saleable asset and a business that can work without you. You are now able to spend more time working ON the business – working on the planning, strategising, marketing etc.
Rung 4 – Investor
At Investor stage your business is now starting to generate good profits for you, it has a great team in place, a great leader in place (You), documented systems and is running like a well-oiled machine. You now need to decide where you want to invest your profits – shares, other businesses, property etc. Investing enables you to grow your wealth and build financial freedom.
Rung 5 – Entrepreneur
The final rung of our ladder is the entrepreneurial stage and this is about exponential growth. This is where you franchise your business, or sell license agreements, or create agencies or award distribution rights etc. Not all business models will lend themselves to this and so the investor stage may be the top of the ladder for some businesses.
So, where are you on this ladder? How far are you towards creating a true business which is a Commercial, Profitable Enterprise that works Without You?
At ActionCOACH, we have a proven system & methodology to help you climb this ladder and build your dream business which is the vehicle to achieve the goals and dreams you have for your family and your life.
If this resonates with you, we offer a complimentary coaching session to discuss your business and how to climb the Entrepreneurial Ladder. Click here to request your session.