Self-Employed to Business Owner: The Path to Sustainable Growth and a Happy Life

I continuously meet business owners who, regardless of the size of their company, find themselves trapped by their business. Often, they are the most active and sometimes the worst-paid employee of the company they founded. This makes them more self-employed than businessmen. There is a significant difference between being self-employed and being a businessman. While both roles involve working for oneself, the responsibilities, mindset, and strategic approach are very different. Understanding these differences and knowing how to make the transition can be the key to the growth and sustainability of your business.

Self-Employed vs. Businessman

Self-Employed: A self-employed person is someone who works for themselves or owns a business but essentially takes on the role of a worker within their business. This means that their time and effort are directly related to their income; if they are not present, the business simply does not generate income. Common examples of self-employed individuals include freelancers, independent consultants, and small business owners.

Key insights into a self-employed person include:

  • Taking control of all aspects of work.

  • Income depends directly on their hours worked or their participation in key activities.

  • There is a limit to how much the business can grow because it solely depends on the self-employed person's time and effort.

Businessman: A businessman, on the other hand, builds a business system that can function without their constant presence. This involves delegating tasks, implementing efficient processes, and focusing on strategic growth.

Key insights into a businessman include:

  • Delegating tasks and responsibilities.

  • Income does not depend directly on the hours worked but on the work that the team is doing.

  • The business can grow and scale beyond the owner's time and effort.

One of the reasons many entrepreneurs decide to become businessmen is to be independent and to have control of their time, which often, by becoming self-employed, ends up being even worse.

Today I want to share with you five recommendations for transitioning from simply being self-employed to becoming a businessman:

1. Develop a Business Mindset: 

The transition begins with a change in mindset. Stop thinking of yourself solely as a worker and start seeing yourself as a builder of systems and processes. Invest time in learning about leadership, business management, and growth strategies.

2. Delegation and Team Building: 

One of the biggest steps is learning to delegate. Hire people who complement your skills and trust them to handle operational aspects of the business. This will allow you to focus on strategy and growth.

3. Automation and Efficiency:

Implement systems and tools that automate repetitive tasks. Use business management software, automated marketing tools, and other technological resources that increase the efficiency of your business.

4. Focus on Strategic Growth:

Spend time planning the future of your business. Define clear long-term goals and develop strategic plans to achieve them. This includes identifying new market opportunities, developing new products or services, and expanding your customer base.

5. Develop a Support Network:

Surround yourself with other businessmen and mentors who can offer advice and support. Join networking groups, participate in industry events, and consider having a coach or mentor to guide you on your business journey.

I know that the path of entrepreneurship is a difficult one where you often have to start by taking on many roles. The crucial transition from self-employed to businessman is not an instant process, but with the right focus and mindset, you can build a business that is not only profitable but also sustainable in the long term. The key lies in delegating, automating, and focusing on strategic growth, all while surrounding yourself with a solid support network that helps you generate accountability and supports your decisions.

Best of luck!

Written by Fernando Herran