Posts Tagged ‘business owner’

Independent-Contractor Thinking vs Business-Owner Thinking

Posted: June 5, 2012 in By Patrick Bet-David
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Some may say that independent-contractor thinking and business-owner thinking are both the same thing, but that couldn’t be further from the truth.

We’re living in times when society is doing its best to influence us to work less and to have fewer commitments, less responsibilities, and less accountability. After all, there is a lack of responsibility, accountability, and commitment at the top of the government; this type of “stinking thinking” has been passed down to the day-to-day American, which has in turn led us to where we’re currently at as a nation.

In stark opposition to this attitude, I want to address a certain kind of thinking that gives drastically different results. In order to see how you get to this higher level of thinking, let’s start by looking at the different categories of employment.

There are five stages of employment, which many of us have gone through:

  1. Unemployed: 8.3% of America falls into this category. As you can imagine, it’s very problematic to be unemployed when you have a life and a family to support.
  2. Underemployed: This is quite a large group of people today. The waiter at a five-star restaurant who used to be a CPA or engineer but is now having a hard time landing a good job is underemployed; rather than choosing unemployment, he chose to be a waiter and make $65,000 a year with tips.
  3. Employed: This means you have a job that you’re pleased with.
  4. Independent contractor: You get paid what you’re worth in this category without a set schedule. Freelance graphic designer, realtor, life insurance agent, actor, musician, salesman, and photographer are all examples of independent contractors.
  5. Business owner: This category is a combination of an independent contractor mixed with a tablespoon of the predictable routine or schedule of an employee.

Having been in all of the five employment stages I can tell you that I learned a great deal from each level. But despite what we can learn from all the stages, most people have a desire to own their own business one day. You want to be a partner or a part-owner of a business, in a position where you’re involved in making decisions that grow the company to the next level; this kind of investment requires a different level of commitment than the first four stages.

Now let’s focus on the level of thinking associated with the last two stages. The real question is this: What’s the difference between the level of thinking or mentality of an independent contractor and a business owner?

Most independent contractors think that they’re business owners, but they run their businesses more like an employee does than a business owner. They wait for a financial crisis before going out and working hard to build up their cash reserve again. If in real estate, for example, an independent contractor will work extremely hard to land a few sales; but after making $35,000 in a month, they’ll be somewhat casual the next ninety days, thinking that they’ve already made it big. Once the money runs out, they start panicking and start working hard again. This becomes a cycles that doesn’t stop until they make a decision to start thinking like a business owner.

Conversely, there are many actors, realtors, and salesmen who are independent contractors but comport themselves as business owners. These people represent only a small percentage of the market place, and they are usually the ones who are the high-income earners.

Here are ten points that show a business owner’s level of thinking versus the thinking of a day-to-day independent contractor:

  1. A business owner shows up for work at the same time everyday unless he’s traveling or on the road. He has a set schedule and is predictable.
  2. A business owner invests money into his business.
  3. A business owner runs her own office.
  4. A business owner has a supporting staff. A personal assistant is a must.
  5. A business owner has a system for every aspect of his business in order to minimize clutter.
  6. A business owner usually has a certain set of numbers they track—sales, activity, follow up, profit, loss, etc.
  7. A business owner is a risk taker.
  8. A business owner does everything with a purpose.
  9. A business owner is constantly studying and reading to find ways to improve himself as a leader as well as his business.
  10. A business owner sets goals and pushes to the very end to achieve them.

If you’re an independent contractor reading this, you may see a few items on this list that you currently practice as well as several you need improvement in. I want to encourage you and challenge you to commit to thinking like a business owner in all areas of your business. You’ll see a dramatic difference in your business, which will in turn drastically influence your lifestyle. This higher level of thinking will get you that much closer to living your dream life.

Einstein Didn’t Need NZT to be ‘Limitless’ (and Neither do YOU!)

Posted: March 22, 2011 in By Patrick Bet-David, Success Principles: Movie Edition
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This blog was inspired by a movie I recently watched called Limitless, staring Bradley Cooper. The movie is about a pill called NZT that gives you “limitless potential” for 24 hours.  In the film, Cooper’s character gets to be everything he’s ever wanted when there is no limit to what he can do or imagine.

It’s all fun make believe, but it got me thinking about the idea of going beyond our limits without the aid of a magic pill. Haven’t we all had glimpses of greatness where we felt we could do anything? Is it possible that we get intimidated by the idea of limitless possibility? The idea that you could accomplish whatever you put your mind to? If we were told we could take or do something that would allow anything to be possible, does that take away our excuses for not pursuing our dreams?

There is a common myth that we only use 10-20% of our brains. And while that particular myth is scientifically untrue, what IS true is that most people only reach 10-20% of their potential. Many people stop stretching themselves, either because they become complacent with their current circumstances, or because they feel the next level is out of reach.

A teenager stretches to make $1,200 a month to buy a car and cell phone. A young woman pushes to make $2,000 a month to move out on her own. A couple works to make $6,000 or $7,000 a month to buy a house or get married? But is there a cap on what you can earn? Or do people simply stop setting goals to take themselves to the next level? Why do some weight lifters stop at 200 lbs. and others push on to 225? We all have priorities in life to focus on. But who sets the limits on how far we can go in the areas that are important to us?

If you know me or read this blog regularly, you know that I am very interested in studying what the great achievers of history have in common.  What separates Einstein, Edison, Michael Jordan, Mark Zuckerburg, Steve Jobs, Bill Gates, Graham Bell, or Billy Graham from the rest? What was their formula for breaking through the previous limits in their field?

There may not be a magic pill around, but I think there might be a formula if you read about these “limitless” achievers and what they had in common.

1. Experienced a dramatic event in their lives that served as a turning point.
Sometimes finding ourselves in a place we do not want to be is the motivation to take charge and change our lives. Those who have ever lost everything, gone through a divorce, had a near death experience, lost a loved one, or hit rock bottom can use those experiences as an inspiration for personal transformation.

2. Had someone in their lives that always doubted them.
Limitless people hear “you can’t do it” – but they respond with “watch me.”

3. Came across someone who finally believed in them and their capabilities.
This may sound contradictory to #2, but both our doubters and supporters play a role in removing our self-imposed limits.

4. Became obsessed with learning and growing.
Limitless people are curious people. They are constantly asking questions on why and how.

5. Had a tremendous desire to prove a point or make a breakthrough.
The Wright brothers wanted to prove the possibility that man could fly. Muhammad Ali wanted to prove himself the world’s best fighter. Limitless people see the possible in what was previously thought impossible.

6. Worked day and night to finish a task.
It took Thomas Edison nearly two years and 6,000 failed attempts to invent the light bulb. A singular focus on the goal is what eventually allows limitless people to breakthrough.

7. Took several risks that an average person would consider foolish.
The path to limitless is not a safe and sheltered path.

8. Made bold decisions.
Courage is not the absence of fear, it is moving forward in the face of fear. There’s a Latin proverb that “fortune favors the bold.”

9. Were very clear about what they wanted.
Surpassing your limits means looking beyond them. Have a very clear picture of what you are after.

10. They usually had a very high sense of faith.
They believed in a higher power and that this ‘higher law’ was on their side. This will be a hard feeling to imagine to most people who haven’t experienced it personally.

11. Had several people consider them crazy.
Most people considered Einstein crazy before he became respected. Edison was considered a bit bonkers too. Maybe you remember what they said about Steve Jobs.

12. They had the attitude of “them against the world.”
Don’t bet against this group.  At their core, they were fighters.

13. They went through several challenges
And that is what made them who they finally became; names we will read about in the history books for centuries to come.