Are You Creating a Company or a Job? This question often comes up in business. And, there really isn’t a correct answer. Some may aspire to build a company. Others are just looking for a means of support. However, while there may not be a correct answer to this question, the way you answer should help guide your major business decisions.
Are You Building A Team?
As you build your team, consider the roles that you need to fill. Will you be the primary producer (head designer, primary consultant, lead developer)? Will you need a sales team? How will you compensate them? Who will manage your back office function? Who will talk with your clients?
If you’re planning to be the primary producer (you’re the brand) and you want to build a company, then you need to build a team that supports you in producing the most that you possibly can, and then helps you develop ways to produce beyond that capacity. If you’re a consultant, develop training materials, books, and other tools to complement your services. If you’re a web designer, rather than customizing every design, create templates that others can use to increase your production. If you’re a software developer, design tools that you can use in reviewing teamwork, so that you can have assistance in developing, but still control the quality. Your company becomes less dependent on you as an individual and generates more income from the complementary services and products you have developed.
Alternatively, you may start out as the primary producer, with the ultimate goal of stepping back from the daily operations. Rather than be the lead developer, you plan to hire a team of talented developers to build out your idea. Create an organizational chart with your ideal company structure. Vision, Marketing, Sales, Finance, Operations, Production, etc. Determine who is responsible for each area of the business. As the entrepreneur, you may be filling a majority of the roles. As your business grows, you need other members of your team to claim responsibility for the various roles. If you are responsible for too much, for too long, your business growth will become stagnant. Find a team that lives your mission and empower them.
Are You Building A System?
In creating a job, build systems that will allow you to become the most efficient and get the most done with the least effort from you, so that you can focus your time on production. If you’re building a company, you need to be the vision behind the system and create processes that are carried out in the most consistent manner possible, no matter who is responsible. Develop a system that allows your clients to have the same experience no matter who is serving them. Create systems that are consistent with your vision and your culture. Your business runs on systems. If the systems can’t be carried out by anyone but you, you have a job. If your team can produce consistent results no matter your involvement, you have a company.
Are You Building Profits?
If your business typically makes very little beyond your salary, then you’ve likely created a job. This is often referred to as a lifestyle business, one that allows you to live a desired lifestyle based on the income you can produce. To build a company, your business needs to be generating consistently increasing profit, beyond the salary you, as an owner, take home for yourself. Review your finances on a regular basis, make adjustments to your team and systems as necessary to achieve desired profits.
Whether you want to build a company or a job is up to you. But it’s important to know where you’re headed.