The difference between a sole trader and a company owner

My first blog post! I am not going to lie. I have been delaying this post for weeks now. Not because I don't have anything to say... in fact, I have known what topic to mention in my blog for weeks now. The barrier was lying around the 'Time' and 'prioritisation' off the post. This is something which I will discuss in another post, as they are two of the most actionable tasks and excuses you could ever hear in a week or even a day (we know you have said it) "I just don't have enough time". The reason for creating a blog was not only to share my learnings and experience but actually to record my personal development. I struggle with taking the time for personal development and growth, however, in order to have an entrepreneur mindset, it is vital.

The power of education and learning is what motivates you, sets you back on track, and gives you a clear direction. I am reading a book at the moment called 'The Cashflow Quadrant: Guide to Financial Freedom' but Robert Kiyosaki. I am not much of a reader, however, my most recent mentor told me to read this book as fast as I could to engrain the values of the cashflow quadrant and the meaning to be a sole trader and a company owner. Before reading this book (still reading it haha) I didn't understand the difference between these two registrations. I presumed that a company was just a bigger enterprise like big companies (Apple, Microsoft, uber, etc) while a sole trader was more like freelancers. Although I am not wrong, it is so much more than that.

Sole traders are workers for themselves, which I already knew, however, I never compared them to an employee role within a company, but the truth is, it is not much different. In fact, you are just an employee for yourself. You will most likely earn the same amount of money as an employee in a company, however, work 10 x more. I use to work for a large company where I was an employee and I hated every moment of it. Not only because I didn't feel valued, however, I didn't do anything. I wasn't challenged, and I was getting a good wage. I got depressed and this is when I quit to try and find my passion. For me, being a sole trader is preferable than an employee, but the reality is that you will work harder and may even get less than an employee wage just to have your flexibility. But I want to stop you there... is it flexible? Those who are sole traders will be working for the rest of their lives in the attempt to make their salary, and once they stop or go on holidays, their wage is compensated and there won't get paid holiday leave. Then there is a company. Most people who are on the left side of the quadrant (sole traders and employees) won't ever make it to the other side of the right quadrant which is a company and investor, as their mindset is very different. You can train yourself to be on the right side, but it takes time. I am currently making that transition from the left to the right, and it has been a battle!

The right side of the quadrant is where you gain financial freedom, flexibility, and a wage that is above anything you could ever make as a sole trader or employee. A company is when you create a system and get employees to work for you. Yes, you will work at the beginning especially in a start-up, but eventually, you want to either sell the business or get someone else to run it so you can go on holiday. A successful business is one which you can step away from the business and it still makes a profit and increase it's growth without you actively being their. This is what I drive to do...what about you? As an entrepreneur I know though that I will never not be active in the business... however I do know I'll keep creating new businesses as I love collaborating and brainstorming ideas. Is this not obvious as I attempt to create 4 businesses at the same time!

I guess this post is just a reflection of making decisions. As I read this book and continue to do so, owning and running a company is not a sprint. It takes time, and often you have to sacrifice your financial assets or stability to get there, so you can focus on what is important and the real end goal.

This is it for now, however I want you do think... do you want to work for someone and be stable? Or do you want to be financially free in the long run? If you want to be on the right side of the quadrant, then you may need to sacrifice your stability for the short term in order to get there.

I hope this post has given you some insight! If you are wanting to work with me to be held accountable during this time, I am offering a start up business pack within my accountability coaching course! Head to 'Services' and click on the book now bottom to recieve a free 30 minute strategy call and discussion on what you are wanting to achieve.

Much love,

Laura xX

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