Money & Marketing 101: The Most Important Thing You Can Do NOW To Save Your Business (It Might Surprise You!)
Let’s face it–our world has turned upside down over the last two months. It’s been a mind-blowing challenge for everyone. But those of us in business for ourselves have felt a special kind of sting. What can you do to save your business?
It’s pretty safe to say that no matter what, though, you’re redoing HOW you do business. (Or at least trying to figure out how to do that!) From pivoting business models to navigating emergency loan applications, we’ve all had to adapt. (And FAST!)
Now, you might wonder about how to save your business right now. We actually have an answer for you–and it might surprise you!
Ready?
Reconnect with yourself and your business, and decide where you are with both.
Come back to the grounding piece of your business mindset. Determine how you’re thinking and feeling about your business right now. Decide how you identify in your business. Then decide where you want to go from there.
This all starts with determining how you identify with your business. Here’s what that means, more specifically.
Do you see yourself as an en entrepreneur or a business owner? How about an independent contractor or an employee?
Now, you might be wondering what the difference is. Except for the “employee” hat, aren’t the rest of those options pretty much the same? After all, if you have a business, aren’t you both an entrepreneur and a business owner already?
The answer is not necessarily!
Business is not a one-word-fits-all situation. There are some significant differences between all the above descriptions. Knowing which one you are right now first steps to get you to your next move.
So why does knowing your type matter so much at a time like this? Shouldn’t the main focus be keeping your doors open and the income flowing?
Of course, that part is important. But there’s something that comes first.
This is the moment to reconnect with who you are and what you do. It’s time to ground yourself, get clear, and take stock in where you are with your business.
After all, once you know where you are, you can decide where you want to go. What could be more empowering than that? So THIS is the first step to save your business.
Now is the time to set the foundation for your next move. It all starts with knowing where and who you are in your business.
Let’s talk about the difference between employees, contractors, business owners, and entrepreneurs. We’ll help you figure out which one resonates the most with you. Then we’ll use that information to help you decide the next best move for your business (and life)!
We’ll cover the logical and technical stuff. Then we’ll jump into the mindset and marketing part. When we’re done, you’ll have what you need to create a new roadmap for your business future!
Read on, and check out the accompanying video version too!
Let’s start with some definitions.
Corporate vs. Self-Employed.
We’ve got the corporate side, which includes business owners and employees. The self-employed side includes independent contractors and entrepreneurs.
Now let’s define how the IRS sees them. The primary difference as far as the IRS is concerned is that employees are on a payroll and are W2 based. Independent contractors are not. They report their income via 1099 forms.
Employees work for one place. The expectations and boundaries are set by the employer. As an employee, you show up, do your job within the parameters set for you, and leave. Employees also fall under the corporate umbrella. (Business owners fit into this category too, which we’ll get into shortly).
Independent contractors follow a different path. They have a specific skill, and their revenue stream is based on that skill. Unlike employees, they usually have multiple clients instead of a single boss. They’re usually LLCs or Sole Proprietors, and receive 1099s instead of W2s. And unlike employees, they’re considered self-employed rather than corporate workers.
Independent Contractors have more freedom, while employees have more structure and guidance. But, both employees and Independent Contractors usually trade dollars for hours. (That’s one thing they have in common!)
The 4 Buckets: Employees, Business Owners, Independent Contractors, and Entrepreneurs.
Now you know more about corporate versus self-employed setups. We’ve covered how employees fit one category and Independent Contractors fit the other. So where do business owners and entrepreneurs fit in, and what is the main difference between the two?
Here’s how it breaks down:
Business Owners are leadership-oriented. They play a more managerial role. Business owners maintain relationships and profitability within a set business plan. Their job is to lead and keep the business going in practical ways.
The business owner fits under the corporate umbrella, as do employees.
Entrepreneurs are solution-oriented. Entrepreneurs are leaders, too. But they tend to be leaders in their industry more than in their businesses.
They’re the ones with innovative ideas. They disrupt industries and change them. They create something out of nothing. They look for problems or needs within industries. Then they and come up with game-changing solutions.
Entrepreneurs, like independent contractors, are considered self-employed. But they’re not the same as independent contractors, and here’s why:
Independent Contractors have a single trade or skill. They use it to serve their clients in a specific (but limited) way. Entrepreneurs, however, are the big-picture types. They find solutions to more expansive problems rather than focus on a single skill.
That’s the basic breakdown of the four main types of workers, where they fit in, and how they get paid.
Now, which one sounds the most like you right now? Give it some thought. Once you’ve got an idea, let’s use it to start plotting a new course for your business!
How do you do that? Here is the next step…
Reflect on where you are now, and how you got there. The next step is to recognize where you are now, then figure out how you got there. That means take a look back at your personal journey and notice the stages you’ve gone through so far.
What will come of this for you? You’ll start to recognize that you’ve had a lot more experience in all four areas than you think. You’ll also realize that you’ve pivoted from one area to the other many times. And if you could do it once, you can do it again!
Out with the old, in with the new. Now that you have a better idea of where you’ve been and where you are now, start letting go. Letting go of what isn’t working for you right now, that is!
For example, you might be an entrepreneur who is missing the security of employment. Or an Independent Contractor who needs some entrepreneurial energy to offer their services in a new way.
You might be a business owner whose way of doing business is gone–and you need to pivot quickly. Or even be an entrepreneur who has been all over the place for years, and needs grounding in the form of a business plan.
Then again, you might be envisioning ways that all the types could work together for you. If that’s where you are, that’s amazing!
Remember that there is no right or wrong way to be in business. An entrepreneur is not better than a business owner. An Independent Contractor is just as important as an employee.
Now, let’s talk about a few tips that will help you make your next move, no matter how you identify.
Diversify your skillset. You don’t have to acquire a new skill set. All you need is to hone the skills that you already have, and see them in a new light.
This could mean investing in continuing education or training. Anything that will take your skills to the next level counts.
Then, bring in a dash of entrepreneurial energy and open yourself up to using your skills in new ways. Reimagining your skills could lead to new opportunities that you never could’ve imagined! So stay open to new possibilities, both in and out of your industry.
Another thing to keep in mind: expanding and honing your skills doesn’t mean you have to be all things to all people. In fact, it might mean that you niche down even more! Doubling down on a specific skill and becoming the go-to person for it can be a bold (and profitable) strategy.
Reinvent (or create!) your business plan. Do you have a business plan in place? If you said “no” (or “what’s a business plan?”), then this is a perfect time to create one!
If you’ve always identified as an entrepreneur, you might not have a business plan at all. Most entrepreneurs have ideas and execute them well but on a short-term basis. There’s a lot of action, but no long-term vision.
So consider creating a business plan now. Bringing in the business owner mindset can give your business the structure it never had. And make it easier to leverage your skills and creativity even further.
The best part about a business plan? It’s not an order. It’s an intention. A business plan will help keep you focused on operations, and it can turn on a dime if it needs to.
Delegate more, do less. Are you in a position to take on new employees? Now is the time to hire! You might be in an industry that happens to be booming right now.
Look at your procedures and operations. If there’s a place where you can delegate the tasks you don’t like and you can afford it, bring on someone to help.
Bottom line? There are people looking for work who might jump at the chance for a new opportunity. Take advantage of that, and make it a win-win for everyone.
Diversify your income streams. What can you do to serve your clients and customers in a new way? Get creative and start brainstorming, and see where it takes you. This is where that entrepreneur mindset can save the day.
For example, CWK helps people with bookkeeping and accounting. But since everything crashed, fewer people were looking for that service. So what pivits were made do? We added a new approach to a service we already offered.
We began helping people apply for the new SBA loans. That means gathering documents, writing cover letters, and positioning our clients as solid loan candidates.
No real changes to our services. All we did was shift our focus and find a way to give our people what they need in a new way.
This is how to become the solution-oriented leader in your industry, not just in your business!