Episode 345: Best Way to Transition from Employee to Business Owner
When starting a business, it is crucial to treat it like a “baby” that needs constant attention and investment. Just as a “baby” requires both time and nourishment to grow, a business needs both time and money to thrive.
In this episode, Adam Stott and Charlie answer listener questions on various topics. Adam provides insightful advice on how to transition from a full-time job to a side hustle, emphasizing the necessity of investing time and money into the business.
Adam also answers how to create boundaries and stop people-pleasing. He suggests creating a list of do’s and don’ts, and understanding the reasons behind these boundaries. He emphasizes that setting boundaries can save entrepreneurs hours in their business and lead to more productive work.
Show Highlights:
- Investing time and money into your business to generate enough revenue to overtake your current job income
- Consider if being a business owner is right for you
- Building skills can also lead to wealth
- Set boundaries and focus on pleasing clients by explaining your boundaries to others with clear reasons
- Benefits of setting boundaries in business
Links Mentioned:
Get your Business Growth Secrets SUCCESS PLANNER for FREE and profit like a pro: https://adamstottplanner.com/free-book47315172
Adams website: https://adamstott.com/?el=Pod
Watch the Episode on Adam’s YouTube Channel: https://www.youtube.com/adamstottcoach?el=Pod
Connect with Adam on Instagram: https://www.instagram.com/adamstottcoach/?el=Pod
Join Adam’s network on LinkedIn: https://www.linkedin.com/in/adam-stott-coach/?el=Pod
Business owners: Monetise social media, get more clients, increase your following, and make more sales: https://socialmediamonetisation.com/unlockfb?el=Pod
Coaches, Consultants, and Speakers: lower your marketing costs, increase ticket prices, and get more high-ticket clients: https://personalbrandunlocked.com/fb-event-reg?el=Pod
Transcript:
Please note this is a verbatim transcription from the original audio and therefore may include some minor grammatical errors.
[00:00:00] Charlie: So, uh, next question we’ve got from Donna Carson, and she has asked, How do I make the leap from my current full time job to working full time on my side hustle? What are the processes in taking that leap?
[00:00:14] Adam Stott: Okay. So great question there from Donna. Um, I’m sure there’s loads of people listening to the podcast, uh, that are looking to jump out of that job environment and jump into having their own business.
[00:00:26] Uh, full time. So there’s a few things, uh, that we’ll, we’ll go over here. One of the things that’s really important is that when you first start a business, Your business is very much like a baby and people that have been to my event will have heard me say this before, right? And when you look at your business, it’s a little baby is crying out for your time.
[00:00:48] It’s screaming for your attention. Feed me, feed me. Yeah, feed me, right? The baby is saying, feed me now. The problem is if you had a little baby and you went to work all day, eight, nine hours a day, and you didn’t look after the baby, the baby wouldn’t do too well, right? And that’s what typically happens.
[00:01:06] People come up with their idea, the side hustle, their business, and they forget to invest in that business. And in order for that baby to grow up, which is the aim of the game, you’ve got to feed it two things. You’ve got to You got to feed that baby, not baby food. Cause it don’t eat baby food. You got to feed that baby cash, i.
[00:01:24] e. investment. And you also got to feed that baby time. So when you have a business, which is a side hustle, think of it like a baby and say, how am I going to invest in that business to move it along faster? And really look at what’s your budget for that business. Secondly, how are you going to invest time and how are you budgeting your time?
[00:01:43] Because they are the two currencies of business. That’s what we need to give the baby. And if we give the baby the money, we give the baby the time. The baby goes from being a baby to being a toddler, to being a young adult, to growing up. We’ll skip the teenager phase and it grows up to being, you know, someone that looks after you.
[00:01:58] Right. And that’s essentially what growing a business is all about. It’s a commercial enterprise. And you want not to be chained to the business. You want the business to be looking after you. So remember, you’ve got to feed your baby, your business time. You’ve got to feed your baby money. Now that you’ve got that forefront of mind, which is really important.
[00:02:17] The aim of the game is to generate as enough, enough revenue that your. Business baby can overtake your job, current income. That’s the way you got to look at it. How can you generate enough revenue in your side hustle to overtake what you’re currently paid in your job? And if you look at that, then you break down.
[00:02:40] I’ve got to have my product sorted out. So this is when you then get to the foundations. We teach startup foundations. We have a program called business circle really good for it. And what we look at is who is going to be your target market. What is it? You’re going to offer them. How are you going to reach them and find them?
[00:02:58] What is it? You’re going to say Influence them and actually have a compelling message. How many people do you need to speak to and how many offers do you need to make? Now we take people over that process of how to do it, but I’m going to simplify it for you very quickly. Right? So you want to grow a business.
[00:03:12] There’s two things you’ve got to do. One, you’ve got to speak. Two people, you’ve got to go and have a lot of conversations. So how can you speak to more people about your products and your services? And number two, you’ve got to make more offers. So that means you physically go speak to people, take them on a journey, where you make them an offer.
[00:03:29] So they’re the, the success of your business is based on those two things. How many people are speaking to about my products and services? How many offers am I making? So now you have to look at in your time available. How can I do those two things as frequently as possible to get me in a place where my income can overtake what I’m earning at my job.
[00:03:48] Now we look at it as like, right. Okay. So if you’ve got a product that’s a thousand pounds and you’re currently working in your job eight hours a day, five days a week, and you’re spending 40 hours a week working in your job, then you’ve got weekends, you’ve got evenings. To go and offer your products and services and speak to people about your products and services.
[00:04:08] Now, if your current product or service that you’ve got is a thousand pounds and you earn 3000 pounds a month in your job, you’ve got to sell three products or services to match the revenue of what you would have earned at your job. That’s the revenue we have to remember is, you know, how much is it going to cost you to deliver those products and services?
[00:04:28] So let’s say. 3, 000 worth of sales. 1, 500 worth of costs. You still only got 1, 500 worth of profit, which means that you can’t quit your job yet because your job’s paying you three grand and you’ve only got 1, 500 quid. So you’ve replaced 50 percent of your job. So what could you do? What you could do is you could be smart about it.
[00:04:49] And I’ve said this to many people. I was just in Thailand with quite a few people, actually, that were in well paid jobs that want to quit them. And the first thing I’d say is right, they’re getting some revenue, but it’s not enough to quit. Well, what they got to do is they got to reduce their hours in their jobs.
[00:05:04] So you go to your job and say, I’m currently working eight hours a day, five days a week. What I need to do is I need to work four days a week rather than five. Because what you then got is you got eight hours on a Monday or a Friday or whenever it is to go and speak to more people and make more offers.
[00:05:21] Now you’ve got an eight hour focus time and then we go back to the roti return on time invested in those eight hours. If you can go and get another three deals a thousand pounds now you’ve actually replaced your income with the two combined. Makes sense. Hopefully it’s all making sense to everybody.
[00:05:36] And you’re absolutely getting that. Um, now that we understand that, then all we’ve got to do is take our job down from four days to three days. And now you’re going to do the same thing to one more converse. Yeah. From two to one to whenever your boss is going to get down with you and say, Are you fucking here or you’re not here, right?
[00:05:53] And if you’re and then you go and you quit your job because you’ve actually done the moves the right way. So what I would do is start start decreasing the time for money swap
[00:06:05] Charlie: and
[00:06:05] Adam Stott: start increasing the conversation and offers that you’re having. And that is how you, how you switch from being employed to running your own business.
[00:06:14] But I’m going to give a cautionary note on this as well, because I think this is important. A lot of people think that the only way is that they, they need to go and run their own businesses. And that’s what a lot of people actually think, but that isn’t actually true. You can still do well working within a business, working within a team for someone else, and you have to look at your nature.
[00:06:40] As an individual, are you entrepreneurial? Are you risk orientated? Are you okay with investing money? Cause this is a thing. If you’re an entrepreneur, you got to take risks. You got to invest money and you got to invest in time and you got to be creative. If you do not want to invest money in your business, then maybe being a business owner isn’t for you.
[00:07:04] If you do not want to take risks, then maybe being a business owner isn’t for you. You got
[00:07:08] Charlie: to feed it cash. Yeah. You got to feed it cash. If you don’t want to
[00:07:10] Adam Stott: feed the time, you don’t want to feed the money. Then it ain’t for you. And that’s okay. But what you should then do is you should look at building on your skill sets so you can add more value to someone that isn’t that isn’t afraid of taking those risks so you can get paid more money because you built your skills.
[00:07:27] And there is more than one way. Yes, being a business for me is the greatest way that you can do it. But also remember building on your skills is equally important. If you go and start a business when you have no skills, you’re going to struggle. And let me tell you, that’s what I did. 2000 and uh, I started my first business.
[00:07:47] I had the skill of sales. I didn’t have the skill of anything else. It was a tough year. So if you’re currently employed. The first thing you should be doing is up in your skill game and before making that leap as well. Right. But that hopefully that can help you. Donna, who asked the question?
[00:08:02] Charlie: No, brilliant.
[00:08:02] Yeah, no, really great points there. Um, have we got time for one more? Yeah, let’s go for one
[00:08:07] Adam Stott: more. Let’s get one more. Yeah. So,
[00:08:09] Charlie: uh, this is from, uh, die on and she has asked my biggest issue is boundaries. How do I stop people pleasing? Yeah.
[00:08:19] Adam Stott: So I love that question. I think that’s something that Loads and loads and loads of people suffer with, um, they really, really struggle with it.
[00:08:27] And I think that, um, there’s nothing wrong actually with being a people pleaser to a degree, but the people you’ve got to please are the people to invest in you, whether that’s time, whether that’s money and, and actually keeping some of your core elements of being a people pleaser is great. If you deliver an amazing client service, so it’s not such a bad thing to be a people pleaser.
[00:08:52] It’s only a bad thing when you’re trying to please people that are not your clients are not adding any value to the not doing any business with you. And then that’s when it becomes a problem. So you’re investing your time. It’s not moving the arrow. Yeah, it’s not moving the arrow forward in the wrong, wrong areas.
[00:09:08] So what I would suggest you do is I would actually look at the first thing you gotta do is you gotta set your boundaries. That’s the first thing you got to do. You got to have what we call the do’s and the don’ts. So what are you happy to do? And what are you happy to not do? And the reality is most people have never ever sat down and written that down with regards to their clients, with regards to their employees, with regards to their partners, whatever it is, relationship, businesses.
[00:09:37] None have ever said that. Right. And they haven’t actually written them down, but if you actually literally took the time to sit down and write down, Hey, these are my dues this, I’m happy to do this. I’m happy not to do this, but this is what I don’t want to do. And then you can make it very, very clear. And then what you do is after you’ve got your dues and your don’ts, write your why, why do you not want to do that?
[00:09:59] Why are you happy to do that? And now you’ve got your do’s, your don’ts, and your why’s, because you need your why’s to explain to the people that you’re trying to people please, Hey, look, one of the things I’ve said I’m not going to do is this. And the reason I don’t do this, it’s nothing to do with you.
[00:10:15] It’s because of this.
[00:10:16] Charlie: And I’m trying to do this and achieve this. Yeah. And
[00:10:18] Adam Stott: then when you explain that people are like, ah, yeah, no problem. Like I totally understand people. Um, people will respect your boundaries if you set them. So I would say from a very pragmatic, practical thing you can do is write down, um, where you’re, so this is you’re saying boundaries.
[00:10:35] Does the question give more context or not? Um,
[00:10:37] Charlie: just says her biggest issue is boundaries. Um, how do I stop people pleasing? So I, I guess, yeah, letting people too far in or yeah,
[00:10:45] Adam Stott: could be relationships. It could be someone’s other half. It could be their family. Um, I think that. People will respect boundaries when you explain why the boundaries are in place.
[00:10:56] So understand what are your boundaries, first of all, and why are you setting the boundaries there? So if your boundaries are ever tested. You don’t come across as arrogant, you don’t come across as being horrible, you simply come across as somebody that set a boundary for a reason. You’ve got a clear argument as to why.
[00:11:13] And, and you can explain that and very few people will test that if you do that and if they do test it, you know, you can say, well, look, I’m doing that for that reason and, uh, you know, I respect your opinion, but that’s where we’re at and that’s why we’re doing it and, and people understand. So actually physically.
[00:11:31] And this is again, so let’s say this, cause he’s really important. Most entrepreneurs go wrong because they never ever take a breath and take a step back and say, Hey, I’m going to, I’m going to map this out. I’m going to strategize what my boundaries are. But most entrepreneurs have never done that because most of them are not at coaching.
[00:11:53] Yeah. But look, if you’ve had coaching, that’s something, a great coach will get you to figure out because it will help you. But if you haven’t got a coach right now, that’s something that you can step out and you can work on that. Now, by setting those boundaries and spending an hour doing that exercise, you will save yourself probably Yeah, an hour a day, which is five hours a week in your business for the next 52 weeks and save yourself hundreds of hours Yeah By taking that step out to do it.
[00:12:23] So my advice was step out, take a moment, set the boundaries. Do’s, don’ts, why’s, bang, bang. Now you’re done.
[00:12:30] Charlie: Brilliant. Yeah. Figure out what they got to be. And then you can tell people like, this is that, this is that.
[00:12:34] Adam Stott: And you can communicate. Brilliant. Thank you for that. I don’t know. I think you answered it brilliantly.
[00:12:38] Yeah. So great questions today on procrastination, uh, boundaries. Yeah, as well, which is taking
[00:12:45] Charlie: the leap from how you take actually how you
[00:12:48] Adam Stott: how you quit your job, right? Yeah. So look, there’s lots of different things. Those of you that have been listening to business growth secrets. I just want to say a big thank you actually, because many of you have been listening for years and years and years and years.
[00:12:59] We’re now 300 odd episodes in. I don’t even know how many we’ve done tons and tons of episodes. And what we want to do is we want to communicate with you more. We want to help you more, want to impact you more, want to influence you more. And we want to And really want to be able to serve you a higher level.
[00:13:13] And the best way for us to do that is actually for you to send them where your challenges are. Now, when we look at business, business challenges are replicable across all different industries. Maybe you’ve got a challenge right now. We’ve getting new leads into your business and you’re not sure how to solve it.
[00:13:31] Perhaps you’ve got a challenge with you. You’re trying things on social media and they’re not quite working with you for you. Maybe you’ve got some challenges around your team, building a team, um, Maybe your team are not showing up. Maybe your team are not helping you. Maybe your team are not dealing with problems, whatever it might be.
[00:13:46] Maybe you’ve got some big problems in sales, asking for the business, closing the business. Uh, perhaps you’ve got a problem with your culture within your business. There could be many different things. What I want to let you know is that we are recording these episodes to help you and the way that you submit questions.
[00:14:02] Um, we’re going to give you two different ways that you can submit the questions. First and foremost, you can go on to. Big business entrepreneurs group on school school is spelled S K double O L and this is a community platform where you can go and hang out with thousands of people that we’re helping to grow their businesses and you can ask your questions there.
[00:14:24] Charlie: Ask away,
[00:14:25] Adam Stott: ask them in, get them in. Alternatively. You can go to either my Instagram or my LinkedIn and you can drop me a direct message on both of those. The Instagram and LinkedIn is Adam Stott coach as A D A M S T O T T coach at the end. Okay. And you can ask away, ask what questions you want. Um, my team will pick those up, make sure these questions get asked so we can help you in your business, um, to really help you grow, get to that next stage, Get to that next level.
[00:14:57] We will still be having the celeb interviews on air. We’ll still be having me interviewing people that grow in their businesses. Cause I know you love those, but we’re going to put in many of these episodes where I really answer your questions. Today’s questions have been on procrastination, a bit on boundaries and have been on quitting your job.
[00:15:13] Uh, if you know anybody that suffers with, with any of those three things, make sure you go and share. This episode, the only way that this episode grows is by shares because we don’t run ads. Yeah. So go and share it out, find something that needs a bit of help. And I look forward to answering your questions on the next episode of business growth secrets.
[00:15:35] Thanks guys, everyone. And thanks Charlie for helping us out and read them out. It’s been awesome. Cheers guys. And look forward to hearing your next questions.