Are You Really a Business Owner?

Self-employed has many different meanings to many different people. Usually, people say they are self-employed when they are free lancers or run a very small company (usually with 1 or 2 full-time equivalent employees).

If you are a small business owner, I want you to think for a moment how you define yourself. Think for a moment about the question, “What do you do to earn a living?”

How do you answer that questions? Do you tell people that you are a freelancer, that you are self-employed or that the company you run employs you?

Does it really matter? I think it does.

Let’s first define the terms. I am going to over simplify them because the full definition isn’t what is important, but the marketing message behind them.

Here are my definitions.

Freelancer: Someone who works on a contract basis. Usually is not tied to one employer and usually not on the payroll of the contracts. Many freelancers work full or part time for one company and do side projects for others. Primary goal: get enough contracts to make a little extra money (or sustain a certain lifestyle).

Self-employed: Usually someone that it skilled in a trade or industry that allows the person to create personal income. Usually this person needs to be heavily involved in the day-to-day operations of every part of the business from being a janitor to keeping the books to making the sales calls. Bandwidth is limited to what the individual can maintain. Primary goal: develop a business brand that will generate sustainable income.

Business Owner: Understands the need to delegate tasks to various employees. Depending on the focus and talent of the business owner, he will usually concentrate on directing the affairs of the business and not every little thing. Usually has a number of employees (or the same tasks appropriately outsourced). Bandwidth can expand and grow as needed. Primary goal: increase the business to provide sustained, long term growth.

So, why the distinction?

Consider this from a marketing perspective. The way that you position yourself to potential clients can illustrate your value as a potential partner.

Let’s use my company as an example. Currently, we have 8 employees… we are small. One year ago I was self employed… almost a freelance web developer. Now, I am a business owner. Think of these two ways that I can describe what I do and tell me which would you rather do business with? Both are accurate.

The question: What do you do to earn a living?

Option 1.

I am a web developer.

Option 2.

I am the President of a web development company.

Option 1 let’s the questioner assume that I would do all the web development myself… which I don’t do. We have a designer, programmers and a project manager. It implies that I am small and limited in what I can handle.

Option 2 implies size, diversity and stature. The questioner will assume that there is more to my company that just some guy working in some small corner of his house. It now provides me the opportunity to talk about the talent of my team instead of talking about my talent. Although I love to talk about myself.

So, if you are are really a business owner, position yourself as such. If you aren’t, ask yourself if you should be.