How to Make the shift from Employee to Employer


Many employees are making the shift to becoming employers. This can be a daunting task when you begin to see what this mountain looks like that is suddenly put in front of you.
This is a normal reaction and it can be very off putting for would be entrepreneur. Yet, starting a business can be fun and extremely rewarding. You can achieve this by simply following a few basic principles and lessons from other entrepreneurs.
Below are some tips to consider when starting a business and as you start your journey from employee to employer. Here is how you become the Boss!
Please visit this page every week for updates in this section.



1) Responsibility and Accountability



2) Have a plan for your Business



3) Simplify things at the start of your Business



4) Learn Everything about your Business



5) Relationships within your Business



6) Fear: I am afraid that I won’t succeed



7) Understand your business position



8) Should I join an Association?



9) Buy Local. Why should I?



10) Your market is shifting levels



1) Responsibility and Accountability

This is a particularly important point. Making the shift from employee to employer now means that the responsibility of paying your salary now shifts from your boss, company, employer, etc. to you. There is a huge mental shift that must now happen, because now every action that you take will determine how much money you make. There is no limit to making money as this is solely determined by you. Gone are the days when you as an employee just pitched for work every day, go through the motions as dictated by your job description and then happily collect your paycheck at the end of the month. Your energy, your ideas, your inputs now determines what that paycheck will look like at the end of the month. This is where accountability comes in. No more blame game. No more “my colleague did this” or “my boss did that” or “my computer broke” or……you know all the excuses given when something did not happen. Now this rhetoric will become. “I did not get a big paycheck this month because I did not……..” You had limited accountability as an employee and this has changed to complete accountability for your entire business operation.



2) Have a plan for your Business

You need a plan. This business plan has to be shared or communicated with those around you to ensure that everyone working on your business is kept abreast of your ideas. A plan helps you store your ideas, it orders them in an easy to follow system and it keeps you on track with what to do next. This plan will change constantly, and so it must. I always say the only constant in life is change. You will soon realise that business principles are the same for any business. Work on it every day but remember the plan is not the goal, the business is. A plan gives you a working document that when you stipulate deadlines, it holds you accountable. Yes, there is that word again. Accountability, and it starts here. Remember a business without a plan is like a boat on the ocean without a rudder. It will go whichever way the tide takes it. And in most cases, its towards rocky shores.



3) Simplify things at the start of your Business

Sometimes as an employee you are asked to do elaborate reports, extensive admin and more. When you start your business, simplify things. Keep it easy at the beginning while you focus on bringing in the money. There is no point in having all those incredibly long reporting systems at the start of your business. You might work with complex systems now which is fine if you are working for a huge corporate. It is not needed at this stage for your business. This could hinder you from getting started. Simplify your workday and create clear focus points.
Breakup your workday to example: 40% servicing clients and 40% getting new clients and 20% on admin and other stuff. The simpler you make things, the more enjoyment you get out of doing it. If you enjoy work and the reward is money, the this equals love. If there is no reward, there is no love for that business.



4) Learn Everything about your Business

Learn everything about your business. This is so true if you are starting a business in an industry that you have no experience in.You need to understand the entire supply chain from manufacturing to distribution. Know where your business is located in this chain and then learn about the channels around it. Understand the products used and where its sourced if you are manufacturing something. Understand who buys from you if they are a reseller and who their customers are. This can help you when negotiating prices. You must learn basic accounting. You do not have to do the accounts but must know how money flows in and out of your business. Understand basic HR principles. And continue to learn the law as you continue your business. This can save you thousands of Rands later. Are you able to step into any person’s job if they suddenly leave? Do you know what that employee does and what the outcomes of their job is? Understand licencing and certificates that are needed to start your business. You do not want to be shut down because of improper zoning, health and safety issues, lack of licences, etc.



5) Relationships within your Business

Now that you are the boss, the relationships that you have with staff, customers, suppliers, debtors and creditors will change. Two of these relationships that are extremely important are:
Customers: Everyone you now meet is now a potential customer, depending on what your business is. Check all your Social Media platforms and ensure its geared to giving them confidence to buy from you. Modify those posts where you rant and swear about something like someone stole your parking space at the mall. Is what you are saying reflecting what your business image is? Remember, your personal brand is now also your business image.
Staff: Always be kind to your staff. They are one of the most important assets of your business. Treat staff fairly and you will have loyal supporters while you journey on your road to business success.



6) Fear: I am afraid that I won’t succeed

The most common reason for business failure is FEAR. Fear sets in even before the business even gets started. You have already self-progammed: What if I fail? What if things don’t work out? I won’t succeed. It also comes from people around you like family and friends. “Are you nuts, it will never work!” “Why do you want to risk everything?” “You won’t succeed” The programming starts long before you even put pen to paper. And this programming continues to grow as you work on your business plan, as you start your business and as you run your business. It is this programming or mindset that needs to change. It is this mindset that is your biggest enemy. Undo the programming, Change your mindset. And change your business success. Start to visualise your success, think positive and cut out negative people. You need to have that strong mental state with the unwavering belief that success is the only option. You will experience hiccups and challenges throughout your business life, that’s a given, but it is a strong positive mindset that will get you through them. Invest the time to correct your mindset. Spend the time in the morning or evening building your mental muscle. It can be corrected, and you will reach your goals.



7) Understand your business position

If you have a business, this is where you gather your troops. Take stock of your position in this huge ocean that just suddenly dried up under you. Look at your business status. Do I still have a business? Will I be able to keep it? Can I restart when lock down eases? What are my options? Can I access funding opportunities? Where am I? It does not matter where you are. Just know where you are. It is easier to navigate the way forward to your goals if you know your current position.



8) Should I join an Association?

Many entrepreneurs join an Association, kick back and wait for the business to roll in from that Association. Now that will not and is never going to happen.
The Association is NOT there to do your business.
So why join one?
Each Association clearly highlights their objectives, achievements and USP’s. So check the reason for you joining one.
Overall: They are the voice of your industry. They put your industry on the map and ensure visibility to the necessary government departments and markets by showcasing the standards and levels of compliance of its members. It is this voice that speaks on your behalf and takes up the fight with external issues while you focus on your business. It is also this voice that government departments usually speak to as opposed to an individual company. Associations are also the one stop shop where you can access trends, developments and burning issues affecting your industry at any time. It allows for networking and business opportunities when specialists and visiting delegations attend meetings. Here you get to form collaborations and get shortcut to solutions for problems or questions you might have. And as a collective they are also able to access funding opportunities to source new business at trade shows.
So how do you derive benefit from being part of an Association. Or better still how can you access opportunities from my association: Pitch for meetings, read the newsletters and access their communication channels. Volunteer for committees or subcommittees. Network, mingle and speak about your business and functions. Be there.



9) Buy Local. Why should I?

This has a few major benefits. It leads to more employment and job creation. More employment means more money circulating which a means smaller gap between the haves and have nots, which in turn reduces socio economic problems. As local demand grows it will lead to the transfer of skills and the upskilling of staff and then ultimately job retention. Other benefits of buying locally is that we reduce our carbon footprint to get the goods to us. Fluctuating exchange rates is a common problem in our country which often means that the cost of goods and services often fluctuate. Buying local ensures a fixed rate of purchase which leads to better costing for your company resulting in a more confident consumer. Buying locally can lead to better quality goods. Cheaper is very often not better on certain imports. As demand goes up for local goods and services, so too will the competition, which will result in improved goods and more competitive product pricing. We do not know what the future holds for us in terms of pandemics, trade wars and the like. Will we be able to sustain ourselves should the global economy be shut down again? Buying local can help us to achieve this.



10) Your market is shifting levels

The biggest threat now is happening in level 2 of Maslow’s Hierarchy of Needs. This is our safety needs which are job security, income, property, etc. Now that many SMME’s are closing down and many corporates are beginning to shed jobs, this level is been shaken at its core. No job means no income, and this has a huge impact on the security of their houses, cars, children’s education, and more. Although many people have access to level 2 needs (which are jobs) they still operate majority of the time in level 1 so these basic needs are also under threat. When level 2 is affected, this puts huge strain on relationships in the home, with friends and family which is at level 3. Although many are supportive of each other as this is the good and sympathetic nature of people, this is limited and often not sustainable. Once the security of an income is taken away a lot of other pressures rush in to fill this space. Anxiety, stress, depression and more. No income means having to access resources like savings, pension funds, loans, etc. while also downsizing on the usual needs of a lifestyle that was your norm. No income threatens the security of insurance and medical aid premiums, repayment of loans, credit cards, vehicle finance and more. But when you operate in the higher levels of 3 and above your descent to lower levels will probably take some time because of your ability to access to resources. The “I’m still ok” syndrome kicks in. So how does this impact on your business? You have to understand these levels according to Maslow in order to navigate your business direction. You need to take these needs into account when you are creating your products and defining your services. You need to accept that these levels that are being disrupted will create a new sense of needs as clients move between the different levels. So, position your business to cater for these changes. So shift your business products or services that ensures a win-win situation and do not overcharge to compensate for loss of business or profits during this time.