I couldn't remember his name.
Whoosh.
Gone.
Vanished from my mind.
Everyone tells you how excited they are for you when you're having a baby, how wonderful it is to be a parent, and just you wait for the sleepless nights but oh how rewarding it will be.
I just spent a weekend visiting my son on campus, about 6 weeks into his freshman year and yes, it's rewarding and I'm so grateful for him.
But that post-partum hormonal burst was a b*tch.
It wipes your memory out so that you too can think of the pregnancy struggles and the post-partum sleeplessness with similar fondness, making you consider that another go might just be worth it.
Evolutionary naiveté at work.
So what's our excuse when we start a business not realizing the actual effort it's going to take?
The Compensation Illusion: What's Truly Behind the Owner's Take
A lot of people leave larger firms to go out on their own because they view it as an opportunity to do it better than and make more money.
In fact, here's how most early stage owners I've met think the compensation stacks up as an employee vs hanging their own shingle.
They think that...
How much I get paid for the work...
PLUS
How much the boss takes from me for the work I do...
WILL EQUAL
How much I'd get if did the work AND owned the firm.
Which leads to this assumption that going out on your own means there's a bigger pool and more opportunity.
Which may be true but...
As employees, we don't always see how the behind-the-scenes infrastructure and admin work, how the bureaucracy (oh heavens, the bureaucracy!) and management decisions (ones we can't understand and don't agree with) are what actually create a successful, profitable business.
We just think we can do it better and off we go.
I applaud small businesses and the entrepreneurs. You've jumped over a major hurdle with courage and conviction and that's more than many will ever do.
But naiveté is not a recommended strategy for long term success.
Getting Paid To Do Every Job In The Business
So let's break down what's actually behind the boss' take and how you make sure you get ahold of it.
In varying degrees, it is...
- Time or money spent on business admin & infrastructure (human & tech support).
- Time or money spent on business development and reputation building, perhaps dating back years (marketing & sales).
- Time or money other staff members take to support them and you (team).
And of course there's taxes, benefits, etc.
The point is...
Without the right structure and support, you aren't getting paid your take and the boss'. You're getting paid for doing multiple jobs.
The tradeoff isn't autonomy vs. employment or even more money here vs. there.
It's visible accountability (a boss, a structure, a paycheck) vs. invisible accountability (clients, cash flow, opportunity cost, family time).
You may not have to answer to "the man," but you do answer to your clients, to your team members, to vendor bills, to your business partner, and to your life partner and kids when you're less present or work way more hours than before.
And it's this invisible accountability or lack thereof that compounds the fastest, and not in a good way, when it's unmanaged.
Decision Quality as the Uncapped Asset
To be successful, each owner needs a structured way to look at and address each of these functions, like embracing a combination of a strong foundation and a strategic execution methodology.
And it's not just about "efficiency", it's about leveraging each aspect in a smart, built for your brand, your goals, your desired outcomes way that generates a return on the investment you've put in.
You can do that by getting clear on your desired outcomes, where and what your genius zone sits, and then adding the people, technology, AI and other resources that allow you to focus in that zone and delegate the rest elsewhere.
But the real powerhouse in here, the thing that provides the no-limits upside, is the following...
The ability to make great business decisions that pay off in freedom, flexibility, and financial opportunity.
Sure, after some throw-spaghetti-at-a-wall initial attempts at delegation (or was that just me?), we might slowly find our way to additional freedom and productivity.
But high quality decision making is the serious risk/reward trade-off that separates the ordinary from the extraordinary.
It requires putting a stake in the ground (every day, not just at the beginning) and going forward even when the future isn't clear.
It's in making decisions... and being held accountable to them, publicly.
It's in setting policies... and enforcing them.
It's in hiring for quality and critical thinking... and encouraging it in your day to day leadership.
This may have been a factor as you left the big comfy firm to do your own thing. Not only could you make more but you could do it better.
But have you truly been learning the skills? Are you making the tough calls? Or are you stuck in multiple 9 to 5 jobs you created for yourself?
Like parenting, we're told business ownership is going to be a hard road but highly rewarding.
But until you're faced with the real difficulties of it, it's hard to imagine it can be as challenging as they say. Or to truly understand what it means to sit in the shoes of the owner and take up the challenges and the ups and downs.
I'm still learning myself and I know that learning = growth. It's a good thing to be challenged. But having a clear level of commitment, and a plan, works out far better long-run than the happy-go-lucky or head-in-the-sand approach.
And taking that next step is as easy as starting a conversation. Let's talk.
