A BUSINESS OR A JOB?

Many professionals and small business owners believe
they own a business when in fact they have actually
created a job for themselves. What's the distinction?
The difference is in the systems.
A business is a collection of systems and processes that
produce results. A job is a task or skill performed by a
person in exchange for money. It doesn't matter if the
task or skill is extremely well paid, if you are paid only
when you show up and do your work, then no matter what your
tax return might say, you are self-employed and have a job.
Creating a job for yourself is no small thing! Building a
profitable law practice or dental practice, or being a
professional coach are major accomplishments! Even if you
delegate some of the functions, such as receptionist or
bookkeeper, maintaining your skills, serving customers,
marketing yourself and running the show is a huge achievement.
But, in many ways, it isn't a "business", it's your job.
A business is organized so that as employees come and go,
the tasks can be learned and performed by different people.
A business has systems that allow it to function when the
boss is sick or away on vacation. A business has a degree
of automation, a sense of flow and momentum so that
customers see no difference regardless of who fills their
order or provides the service. A business can be sold as a
free-standing enterprise.
I want to be clear that there are advantages to both
processes, and for many people, being self-employed is
highly desirable. They don't want to make the investments
or design the systems of a business. They like the "hands-
on", individual style of working for (and often, by)
themselves.
The advantage of building a business, however, is that it
is as an asset. It can be sold, or franchised, or licensed
to other people. The systems can often be replicated,
sometimes even in other industries, and that gives a
business tremendous financial leverage.
Whichever way you prefer to go, be clear about your choice.