No matter who your paycheck is from, you’re a business owner.
You’re business, let’s name it Your Name Inc., sells its labor for a certain amount of money. Over time, You’re Name Inc’s. income will be exactly equal to the value that it provides.
Since you’re now a business owner, you have a few responsibilities that you probably didn’t think you had before.
- Accounting – What percentage of income is getting invested back into your business?
- Board of Directors – Who are you going to let influence your business decisions?
- Marketing – Is your business building relationships that can add value?
- Research and Development – Is your business learning and adapting to stay ahead of the competition?
It’s questions like this that we need to ask ourselves day in and day out. I recently spoke with someone who got laid off from DHL, making $90,000 a year as a delivery man. He now can’t find a job for over $30,000. Yet, he thinks he’s the victim of this economy.
In reality, he was overpaid for the value he provided. Now he has to find a job for his current value.
Something very similar to this happens when someone in their 40′s or 50′s gets laid off after working 20 years for the same company, and their replacement is a college graduate for half the money. Now the laid off worker, who in their “prime earning years” can’t find a job for more than 1/2 of their old salary.
It’s pretty easy to blame the company or the economy in this situation. However, imagine this employee was working for you. Would you pay someone twice the salary that they’re worth?
As a business owner, it’s your job to make your business irreplaceable to your clients. If you can get replaced by someone for half the salary, eventually it will happen.
Your Name Inc. is a pretty simple business. There might be short-term fluctuations in the income generated., but in the long run Your Name Inc’s income will be exact to the value that it provides.
Do something everyday that will improve the value of Your Name Inc.
Besides the mullets, mustaches, and perms in the crowd, these Jim Rohn videos provides a great description of this concept.
Part 1 of Jim Rohn’s Best Year Ever
Part 2 of Jim Rohn’s Best Year Ever
Part 3 of Jim Rohn’s Best Year Ever