Aren't we really working for ourselves

Unless you are employed in a large government bureaucracy, chances are you are or were evaluated by the rules of profit and loss. In the “New Career Economy” in fact for decades (maybe centuries) employees and groups of employees bending their backs for the man, have been measured by a simple yardstick, “Is my productivity, profit to the company, outweighing my cost to the company”. Whether we see this in our jobs singly or as a division, profit is the engine of any business enterprise. Even in most “non-profit” enterprises. As a capitalist and entrepreneur, this is how it should be. It happens to be the only economic system that works over the long term giving more prosperity to the most people and generations in our industrial and now high tech society. Perhaps in our future we will be able to create value and wealth out of nothing; I will be the first to say “Now that is interesting”.
So if making money is our report card, haven’t most of us already been in business for ourselves? A lab technician in a doctor’s office paid $21.00 per hour plus $7.00 in benefits should know that if the lab revenue from her work is less than $2500 per week the owner is straining to keep her. If you don’t know how you fit into the P&L equation, shouldn’t you ask? Sure you should and the higher ups will take notice of your interest.
You will also start noticing other things like: Why does Ralph make two trips to parts when he could bring two parts back on one trip or I am the fastest employee on the production line and rumor has it we are still not making money. Can I help others do more and faster, (other wise none of us will be here). Intuitively you probably know what business is all about and if you don’t or don’t care about your employer or free enterprise then you are experiencing the consequences. I have always wondered what America would be like today if organized labor and management had worked hard to partner rather than being adversaries. The pressure to make a profit must be shared (not equally, remember the Pres. makes the big bucks) and understood by all in a company because all have a share of the risk (unemployment) and the reward (continued employment and a raise now and then).
So have you ever thought about your own business? Does it make sense to exercise that business intuition and go out alone and fulfill your dream of real independence? In the book “The ‘E’ Myth Revisited” Michael Gerber talks about what it takes to go it alone. First! Don’t go it alone!
Statistics say that most non franchise businesses fail (4 out of 5 in the 1st two years) for many reasons like: not enough capital, no marketing plan or stamina ($), didn’t understand the market and demand, and dozens more. Many businesses are developed out of hobbies. Wouldn’t it be great to profit from something you love to do? Maybe! I remember out of college, I found a job as an assistant golf professional in Massachusetts. After two summers I realized that everyone was playing while I was working, and I was losing my joy of golf. Starting a business around your hobby at a minimum will force you to find a new hobby and probably worse.
So how do I find something and avoid going it alone. Two ideas! If you have significant capital or money languishing in Mutual Funds, consider buying an existing business that has proven performance and future opportunity. These companies are valuable and will be priced according to the cash flow and profits they produce. A price of 2 to 5 times their net profit before tax, plus the value of hard assets and real estate, is common. These companies are worth the investment because they have momentum, customers, and a staff that is qualified and doing the job. Please understand this idea is still fraught with challenges and you need good advisors and coaches as part of your team. The second idea is to buy a franchise. Franchises are designed for start ups because you will not be alone. Statistics say that a franchise will succeed eight out of ten times over the first five years. Not only are you not alone you will have a system and a cook book. Here is what you do on day one, then day two etc. There are over 3000 different franchise models and when you hear that small business is the real economic engine of America, it is true and most small businesses are franchises. Drive down main street or visit a mall, 80-90% of those stores and restaurants are franchises. Those multitudes of businesses represent only 30-40% of franchises. Most franchises are located in homes or are hidden in business parks (service businesses).
Maybe you are out of work or frustrated by the New Career Economy. You have skills and business intuition. Add a little (or a lot) of capital and you have more options than you think. No one has so much money that a little coaching wouldn’t help. Even corporate CEO’s use advisors to coach new skills. There are even franchise coaches (like me) who help merge your business personality, financial strength, and dreams with the right franchise model. If you have always been working in a profit oriented company, perhaps the option of scaling back to your own personal profit and loss, your own business is an answer for you. There are plenty of other Silver hairs out there to cheer you on and coach you along the way. Let’s Boom!