Employee vs Business Owner

Employee vs Business Owner

Employee- When I was a kid, my parents taught me to make good grades, get into a good college, and get a good job.  When you hear people say they want “security” and “benefits” they are stuck in the employee mindset.  What I like to call the 40 40 40 plan.  Work 40 hours a week, for 40 years, to retire on 40 percent of your income.  If you like having someone else dictate your life, this is for you.  BUT REMEMBER, this is 2011 and the rules have changed, there is no longer such a thing as “job security”.

Business Owner- We have to start by understanding there are two types of business owner.  1.  Self Employed (you are the employee, you do the work) and Business Owner (you have employees, they do the work for you).  Unless you have thousands of dollars to invest in a business, you’re going to start out as the employee, with the ultimate goal of having employees.  When you can vacation in Hawaii for two months while your employees or your network of distributors continue earning you income then you have started a business.