Finances, organization, and priorities are simply a necessity in life. Without them, it’s impossible for society to function because work will never get done and the most important tasks will never get tackled. This is especially true in business. Some of the things a business has to think about:
- Cash Flow: A business either needs to be making more than it takes in or have enough cash flow to sustain itself until it has achieved profitability (burn rate).
- Functionality: A business’s products must be in demand. It has to be useful, entertaining, or in some way valuable to the consumer. Otherwise, the business dies.
- Organization: Businesses, from one-man operations to conglomerates, must keep personnel, finances, taxes, and information organized and readily accessible if it hopes to succeed.
- Competition: If an industry is profitable, a business can expect stiff and smart competition that will challenge it for customers.
- Prioritization: A business must know what projects are the most important and set everything else aside. Getting 80% of things 80% done is far worse than getting 30% of priorities 100% done.
Each and every one of these qualities and realms are important to a business. None can be ignored for a business to success. None of these qualities can be ignored for an individual to succeed.
The Individual as a Business
An individual needs to have positive or sustainable finances to stay out of bankruptcy or the streets. An individual must be functional and beneficial to other companies to be employable and to friends to be worthwhile. An individual must be organized to get anything accomplished, in either work life or family life. An individual faces competition throughout his or her life at job interviews, for sales calls, and even things as simple as auctions. And finally, an individual must prioritize his or her work, family, business, friends, and time or it all becomes a jumbled mess.
The correlations are rather striking if you think about it. This is why people should think of themselves as a business. When an entrepreneur works on a startup, knowing his or her financial position and how many months of negative cash inflow he or she can handle is going to save that entrepreneur from headaches or even bankruptcy.
With these thoughts in mind, here are a few tips for thinking of yourself more as a business.
1. Stop thinking of yourself as an employee: This is the predominant mindset, and you have to shake it. You are in business for yourself, first and foremost. It sounds a bit cold, but it is true. Don’t let yourself get pushed around in the workplace. Don’t make yourself so dependent on the paycheck that you are stuck in one place. And most of all, be the master of your own domain. If being happy means leaving your current job and taking a big risk, then I suggest staying true to yourself.
2. Always remember, cash flow is king: Everything you purchase has a purpose. Those diapers are for personal care. That T.V. is for entertainment and happiness. Nothing is a meaningless purchase. With that in mind, budget so that your necessities and needs are met, and make sure that budget doesn’t exceed your cash flow expectations.
3. Have two budget lines, bare-bones and comfortable: Know what purchase are bare-bones survival, like food, shelter, clothing, and communication. And yes, in the digital age, I consider a computer and a cell phone a necessity, although you can partially fulfill this at an Internet cafe if necessary.
4. Always be useful: The useful become the indispensable. Having a skill few others have, being productive consistently, and having a strong network are all things that make you useful to businesses and other individuals. After all, you are a business, and useless businesses don’t stay in business.
5. Compartmentalize priorities and goals as distinct projects: Think of each part of your life as a project. Your family is the most important project there is. Others can be your day job, your startup, your friends, your hobby, or your education. But each is a separate project and should be treated as such. Even if they overlap, separate as many elements as possible. Nothing is worse than the work life destroying the love life.
6. Stay competitive: There are more people than positions available for the most desirable jobs, just as there are more businesses competing than there is market share. Losers get relegated to obscurity, while winners ascend. It sounds a little harsh, but keeping a sharp edge is an essential asset when challenged.
You are a valuable entity and need to be treated as such. And if you don’t believe you are, find ways to become one.
Ben—
By way of quick introduction, my name is Tom Grasty. I wear many hats, but right now I have my blogger hat on. I write a weekly piece called The Disgruntled Dylanologist, and this week I wrote about you.
A quick blurb to remind you what the blog is all about:
There are two things in this world that get me worked up. The first is what's going on in this country. The second is Bob Dylan. This blog brings the two together. Every week I use a Bob Dylan lyric as a starting off point for my thoughts on what's going on in America.
As I said, this week I wrote about you. Check it out at: http://disgruntleddylanologist.blogspot.com/
Love to hear what you think about my interpretation.
Tom Grasty
Ben—
By way of quick introduction, my name is Tom Grasty. I wear many hats, but right now I have my blogger hat on. I write a weekly piece called The Disgruntled Dylanologist, and this week I wrote about you.
A quick blurb to remind you what the blog is all about:
There are two things in this world that get me worked up. The first is what’s going on in this country. The second is Bob Dylan. This blog brings the two together. Every week I use a Bob Dylan lyric as a starting off point for my thoughts on what’s going on in America.
As I said, this week I wrote about you. Check it out at: http://disgruntleddylanologist.blogspot.com/
Love to hear what you think about my interpretation.
Tom Grasty
I really like this post, it is 100% accurate and is a must if you want to do well. No matter if you work for a small company or a big company, thinking of yourself as your own company can help you out big time. Great post!
I really like this post, it is 100% accurate and is a must if you want to do well. No matter if you work for a small company or a big company, thinking of yourself as your own company can help you out big time. Great post!
excellent article.
One thing that grinds my gears is the disconnect people have with there personal and business finances – all information is disconnected and not integrated. For instance, some large and small accounting firms perform analysis of a small business without considering how an individuals salary (from there business) impacts there retirement (personal). In order words, not all information may be available on personal finances to assess the consolidated view of an individual's net worth (business and personal). Integration of these components are crucial for tax purposes – people must time and understand the tax implications of there actions and purchases as this may have a significant impact on cash flows.
@itbay
excellent article.
One thing that grinds my gears is the disconnect people have with there personal and business finances – all information is disconnected and not integrated. For instance, some large and small accounting firms perform analysis of a small business without considering how an individuals salary (from there business) impacts there retirement (personal). In order words, not all information may be available on personal finances to assess the consolidated view of an individual’s net worth (business and personal). Integration of these components are crucial for tax purposes – people must time and understand the tax implications of there actions and purchases as this may have a significant impact on cash flows.
@itbay
Very true, good points, Ben. I did this as a freelancer before becoming an employee. And as an employee with an entrepreneurial mindset, I've gone further. Fortunately I'm with a small company that is flexible and provides more opportunities. And I push them too, but they like that 🙂
Very true, good points, Ben. I did this as a freelancer before becoming an employee. And as an employee with an entrepreneurial mindset, I’ve gone further. Fortunately I’m with a small company that is flexible and provides more opportunities. And I push them too, but they like that 🙂
Very true, good points, Ben. I did this as a freelancer before becoming an employee. And as an employee with an entrepreneurial mindset, I've gone further. Fortunately I'm with a small company that is flexible and provides more opportunities. And I push them too, but they like that 🙂
I consult with financial advisors on evaluating whether they should develop their own independent firms to provide better quality advice to clients. Â This evaluation requires them to look in the mirror and to think long and hard about whether they can be successful in making such a move. Â Your comments are spot-on for my clients. Â It is critical that they determine if the clients they work with are with them because of the firms they are employed by or because of them and their ability to sell themselves. Â In order for advisors to truly become successful as independent business owners, they must view themselves as the business. Â