Making a decision to become a business owner is a quantum leap into an entirely new world of functioning. If you were not functioning in the workplace as an employee you will not function any better in your own business. Whether you are franchise owner such as a Dunkin Donuts owner who pays a fee to operate an already proven and successful model or a Day Trader risking your own money everyday, it is imperative that you set up your system correctly and have everything in place to ensure your success.
The first step to always take is to make sure that you are clear about what you want to do and how you want to do it. It is best when you can envision the entire business process from start to finish before beginning.
Business ownership is a tricky subject because there are so many forms of business ownership. Most small business owners end up having their business run them instead of them running their business. This happens when you work in your business as opposed to working on your business. The traps of business ownership often capture business owners in the same position or worse than what they were trying to escape as just an employee.
To avoid being trapped it is vital to choose a business with your lifestyle in mind first. Decided what type of lifestyle you want to live then design a business that can provide that lifestyle to you. After all the most important thing in life is not a luxury car, big house or jewelry…its living a full and incredible life.
I will give a brief overview of the Five business types and the matching lifestyle options each income type offers. For detailed explanations on these types I recommend Robert Kiyosaki’s material.
1. Type – E: Employee; people who become an employee desire security and safety in their income. Type-E make up the majority of people who are considered to be poor. Type – E also pays a larger share of their earnings in taxes to the government. They are often too afraid, brainwashed or both to try any other way to generate income. They just become accustomed to the type of lifestyle their job allows them to afford.
2. Type – S: This type stands for Self-Employed and Small Business owner. Type-S are often solo acts. They are often excellent workers and self motivated. This type is considered to be great drivers but driving the wrong vehicle so they will never win the income race. The main advantage is personal expression but the major drawback is that there is usually no team. There are subordinates but no team. If something were to happen to the Type-S the business would crumble without them this risk results in lack of security and turns most Type-E’s away from becoming a Type-S. Type-S will likely not be poor but will not become rich either and will pay a good share of their earnings in taxes to the government.
3. Type -B: This type is Big Business, the key to success with this type is their ability to find smart employees to work hard for them. The key to Type-B success is to leverage a piece of the productivity of many employees for their own benefit so they don’t have to work themselves in order to be paid. Type-B make up a large majority of the people considered to be rich and pay low taxes.
4. Type – I: This type are Investors they get paid not for their time but for their decisions. Type – I have figured out how to make money work hard for them rather than them working hard for money. Type -I pays the least share of their earnings in taxes to the government.
5. Type N: This type is a hybrid of Type – S, Type – I and Type – B. Type – N are usually Network Marketers, Independent Distributors, Consultants and Freelancers. The most successful Type – N are involved in the direct sales industry. Type – N often work with Type – B’s and are able to leverage the infrastructure, support and scale to their advantage by specializing in one aspect Big Business such as Marketing. While maintaining creative control that Type – S likes so much while building a team or network of people who are also Type – N. Business people of this type are paid from their own work and from the work of others in their network that can be one level or multiple levels deep hence the name Multilevel Marketing. This business model provides the same leverage of a Big Business but as an Independent Operator. Type-N has the same tax advantages as Type – B. Type-N is not for everyone people that fall into this type must be prone to self-development, highly self-motivated, Sharp and like to take charge of their own life.
So there you have it. Decisions, Decisions, Decisions. Just in case it matters to you I endorse Type – N . If you are interested in working with me contact me. Keep in mind I do not work with just anybody. I work with people who I would like to be friends with, people who are awesome in their own way. If that’s you I would like to meet you.
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