How To Escape The Self-Employment Trap

» Posted by on Jul 3, 2011 in Business Growth, Management | 0 comments

The typical small business is a self-employment trap for its owner because of three serious problems..

Problem 1: Success and income are trapped against a glass ceiling and can go no further, because the owner must control everything. A business that is dependent on the owner for most of its production limits its income. One person can only do so much and no more.

Problem 2: Problem one puts everything at great risk. If the owner stops working or gets hurt, the business could die. Everyone is at risk: owner, family, employees, customers, vendors, and investors.

Problem 3: The owner is trapped by his own self-employment. He is so busy doing the job that running the business has been neglected, and it is only viable as long as he works. As sales grow because of the owner’s hard work, he takes on more overhead. Each month he has to work harder and run faster just to cover fixed costs, trapped in the glass cage of self-employment.

The way out the self-employment trap is to build a business, not a job. Build a business that works for you. You shouldn’t work for your business. You should run your business.

When you understand this, your business will grow.  As it grows it will become less and less dependent on you.

 


 

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