One of my first realisations when I started my own home business was that employees and entrepreneurs do not think alike. I know that this may seem like a gross generalisation, but employees tend to adopt a group mentality, where Entrepreneurs adopt individualistic views. Entrepreneurs tend to move in the opposite direction to the masses, whilst employees generally follow in the footsteps of their family members and friends!
However, it is possible for someone to be an employee and adopt an Entrepreneurial mindset. Many people become employees because they believe that it is the right think to do, based on what they have been taught by their piers. It is not unusual for someone to question these views later in life, especially with the recent changes in the economic climate. It can be very difficult to transition from employment to business, even with a strong purpose and motive, due to other financial obligations and commitments. One of my aims in my business today is to help people to make this transition, by teaching the approaches and strategies that I have personally used to develop additional income streams.
Employees generally believe that their only source of income is their job. The goal is often to find a safe, secure job with a decent salary and additional benefits. The problems occur when the ‘employee’ is unable to work, or loses their job, as their only steam of income stops. This is one of the harsh realities that we are observing today, with unemployment at a record high. If you have a mortgage, bills and other consumer debts then it is likely that much of your income from your job is already allocated to pay your expenses. It is common for employees to live just beyond their means, which can lead to financial crisis! You may be aware of the current credit crunch, which has been caused by the increased demand for credit and the banks’ willingness to provide it!
An Entrepreneur does not rely on one revenue source alone. Many Entrepreneurs believe that security comes from developing many sources of income (diversification), whilst minimising losses and reinvesting in new opportunities. In the event that one stream is lost, income is still generated by other means. There is always the potential to identify new opportunities to get ahead.
With this understanding we can begin to look at the current economic changes objectively. Although many industries are suffering, are there any industries, which are thriving? Are there ways to capitalise on this and add additional income streams part-time, without large capital outlay? Is it possible to transition smoothly from employment to business in today’s economic climate? The answer to all of these questions is yes!
