Are you driving your business or is it driving you?

This is not a cliché question; it is something that I genuinely ask and encourage you to sit with and be honest with yourself.

Business allows us to have freedom.

Mostly, people start a business because they have a skill or are passionate about making a difference. They believe running their own business will also give them more freedom and choices and, let’s be honest, will allow them to make more money and have more time. 

I also know that many people allow themselves two years to get things up and running, set things up, and scale up before they can bring in staff or perhaps outsource. The one thing they don’t count on is paying themselves what they believe they deserve for working in the business. Now I know that when you start a business you need to invest in it, which may mean that you may sacrifice your salary to get it to where you want it to be, but do you set a timeframe for this to happen? Do you know what you will pay yourself so that, as you plan ahead, that amount becomes an automated deduction from the business to pay you a salary so you can live on a personal note?

Freedom comes from making choices that allow you to have more time with family, to take a holiday when you want and as often as you wish or perhaps to bring in staff so that you can begin to work on the business, not in it. 

Freedom at least needs to pay you what you were earning so that you are valued and paid your worth. This is, after all, why you started a business, right?

Who is driving who or what? 

As you take a moment to think about this, allow yourself the time to plan. No matter where you are in life, change is about equipping yourself to take the “driver’s” seat. Investing time upfront to prepare allows you to think about where you want to be, when you want to get there, and what else or who else you will need to help you get there.  

I use the word “drive” as it allows you to make the analogy of driving to a destination. When you get into your car to go somewhere, you know what time you need to get in the car to leave because you have a date and destination. You also plan ahead to know how long it will potentially take to get you there. Business is no different, but people often focus on their skills, what their competition is doing, and what they perceive is happening through their competitors’ marketing campaigns and messaging. They end up forgetting why they started their own business.

Here is the reality, none of that matters. Not really. What’s important is knowing what you want for yourself. If you know what you want to achieve and set out to do it, then the focus switches to becoming better than who you were yesterday, as a person and in business. This growth and inner realisation will equip you to continuously drive your own path rather than someone else’s vision, mission, or marketing campaign. 

When you compare what you are doing today to what you did last month or last year, you are comparing yourself from where you were to where you are striving to be rather than to someone else’s external appearance. In reality, you don’t know what they are achieving or doing on a net profit basis. Anything you think is an assumption, so why do it? The whole purpose of you doing what you love is to do it your way and to look at opportunities yet to be discovered. 

Be the driver that sits ahead of the curve and in the lane that will lead you to where others want to be.

Ahead of the curve

When you look inward, you allow yourself to see things through a different lens. When you look at what others have done, you stay in a place of perception and perhaps comfort. You lose sight of all the things you wanted for yourself. 

Be courageous to try new things. Through trial and error, you will stay ahead of the curve, but most importantly, you will remain motivated to innovate. You will inspire others to join you and, most importantly, remain faithful to yourself. 

We have been raised to play the game of chase, but in doing so, we play someone else game. We play small and stay within our comfort zones. When you are prepared to think outside the box and focus on your freedom of choice, you begin to think BIGGER and stay ahead of the curve. You will allow yourself to think of things yet to be done or simplify things so much that others will want to follow you.

Knowing what you want for yourself in years to come will better equip you for what you need to focus on today to gain back time, create your own impact and, most importantly, find that joy that got you started in the first place. 

Knowing if you have a business or a hobby

Without looking at business through rose glasses, you can still have fun running it. The key here is to know if you are having fun running a business or having a  hobby. As you think about this, ask yourself if you are giving yourself the opportunity to retire with enough money to live out your life with joy. 

Many people live week to week in business and draw out money as they need it to cover living expenses and call that a salary. Whilst that may be ok for some, this is not the way to run a business. It's a hobby that is allowing you to enjoy what you do and it gives you some money to live for today.

When you can draw a salary from your business and then pay out all expenses that the business has after you paid yourself and still have money for the business to grow, you have a business. I know many people will say “But Cathy how do you know how much you can draw out?” and my answer is the same every time: When you run a business, you know how much you need to earn so that it becomes viable for you to run a business. You did not get into business to pay yourself less than what you were earning as an employee, so you need to know what you need to be turning over upfront so that will be able to draw that salary that you need. This is why knowing your numbers is critical in business not what marketing campaign you need to be running. 

A business means you are prepared to take ownership of the choices you make and why you are making them. If you don’t know how much money you can draw out as a salary, are you running a hobby or a business? 

There is a great deal I can share on this topic because I am passionate about equipping people to go into business for the right reasons and then equipping them to make more informed decisions from the onset. So, as you reflect on where you are and where you want to be here are 3 questions you can ask yourself:

• What do you need to ensure you earn enough money to live a life filled with joy when you retire? 

• How long have you allowed yourself to earn the income that you need so that you know if the business is viable or not and can pay you what you are worth? 

• Are you equipped to make informed decisions because you understand the numbers in your business and the choices you are making? 

You always have a choice, but first, you must want to make it. 

If you are ready to truly look at your business so that you can make better choices and you want help to get there with clarity, make an appointment.