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As small entrepreneurs we work many hours to bring home an adequate income. We know that if we become sick all is lost and our business will plummet. No matter how much money we make, we are not truly independently wealthy until we don’t have to work in our own businesses. Not having to work in your business will require years of pain, sweat and learning to move your business to that level. Successful business owners say that you aren’t successful until you don’t have to do the work yourself. That doesn’t mean you don’t want to do the work and that you don’t enjoy the work but that you shouldn’t be forced to do the work if you don’t want to. One of the criteria for getting into the middle upper class of society is to control the “means of production”. Controlling production is the same thing as having workers who complete necessary functions for you. Most businesses start by the owner investing all his/her time, money and resources into it. Over time they begin to turn a profit and expand. This expansion forces the owner to hire additional labor. At some point the business will expand to the point that he/she no longer needs to be at the helm. If you desire true success than you have to consider building your business to a size that it can run independently. For some businesses this may mean 2 employees while for others it may mean 100’s of employees. Some owners don’t have the ability to make their business independent of their leadership or they don’t want to lose control. Despite whether or not you want to make your business larger and more successful you do have to understand that big money comes from big business. For example, if you earn $6,000 a month working independently but can hire employees and still make, after payroll & benefits, 1,000 dollars a month off of each of them then you would earn the same with 6 employees. Let us say that you no longer want to be the manager of your business but want to again move to that level where you don’t have to be involved in every detail of your business. That means you will have to hire a manager. That manager may cost you around $7,000 a month for payroll, benefits, etc. In order for you to earn the same amount of money as when you were working independently you would need 13 total employees. No one said it was going to be easy to earn your way into an independently wealthy status. The good news is that because of economy of scale each employee you hire after your break even point will earn you even more revenue. For example, you desire to add another 7 employees to your pay roll bringing your total to 20. You will make more than $12,000 a month because of bulk rates in supplies, office space, heating, benefits, etc. Someday you may find yourself sipping tea in the Bahamas or living in your second home in Mexico. Even more important, your children may find that they will be taken care of their whole life from the efforts you put forth. To be independently wealthy and not have to do any work, unless you choose to, is a liberating feeling that most of us will never achieve. Murad Ali, a two-time published author, writes articles and offers advertisement space for businesses. Visit http://www.thenewbusinessworld.blogspot.com
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