Ep #263: Overcoming Employee Mindset to Become an Entrepreneur

In the episode of More Than Mindset, I’m talking about the distinction between an employee and an entrepreneur mindset, and how you can shift your mindset to success. 

With over 27 years of being a business owner, this distinction became noticible to me when I started hiring a team, and when my clients were shifting into entrepreneur role. 

These shifts are sneaky, so you might not notice them immediately. 

What You’ll Learn:

  • The accountability shift that ensures you will create success in your business.

  • The best way to manage your time an energy as a business owner.

  • My business re-investment strategy that’s helped me grow every year. 

  • The 3 C’s of thinking like a successful entrepreneur.

Entrepreneurs, business partners, side hustlers, you cannot afford to miss this episode! 

Is your business struggling to take off? Get immediate access to my 4 Steps to Grow Your Business now! Sign Up Here. 

Listen to the Full Episode:

Featured on the Show:

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  • Access my unique framework used to sell over a million dollars in offers organically — get it here!

Full Episode Transcript:

Ep #263: Overcoming Employee Mindset to Become an Entrepreneur

Welcome to More Than Mindset, the only podcast that bridges the gap between spirituality and success. Go beyond the mind with clarity and confidence coach, Kim Guillory, and learn how to integrate your passion to serve with your skills and experience to create a business you love. Let’s get started!

[00:00:00] Hey there. And welcome back to the show today. I am discussing employee versus entrepreneur mindset. I was talking with my boss up members this morning, and this has come up several times, but one of my members said, can we talk about like, just like time and pay and the difference in the mindset around this and Malerie, who’s my assistant,

[00:00:44] and I have done a lot of work around this. She’s coming from the health world, the PT world as a health practitioner. And it is so Different whether you are a 1099 or it’s just your own business or you are collaborating with someone else. Completely different mindset. One of the things that I found to be the most different.

[00:01:10] Is the accountability when you are used to going to work at a certain time and you clock in because you have to show up, you have to be there on time or you’ll have consequences to pay, right? They’ll dock your pay. Maybe they’ll send you home. Maybe they’ll fire you after so many warnings, but there is this sense of accountability that someone else is holding for you.

[00:01:34] So they’re kind of taken responsibility for making sure that you show up. That’s, that’s the first thing that I believe is the hardest switch is there is no one in your own business who is waiting for you to clock in. And it’s really hard to make that mindset switch because our brain is lazy. It’s a lazy beast, kind of a dumb ass too.

[00:01:59] It does whatever you tell it. And so if you tell it like, we’re just going to hang out and chill today. It’s like, okay, good idea. We shouldn’t do anything this morning. Whenever you tell it, we got to get to work and clock in so we don’t get fired, it gets on board. Right? Because our brain listens to what we say to solve problems.

[00:02:23] We’re like problem solve. That’s it. Super specific. Get to work, get paid. Work for myself, I can do it later. Terrible idea. So the very first thing between an entrepreneur and employee is you have to be accountable for your time, for when you show up, for being consistent, for being disciplined, and then knowing no one’s looking over your shoulder.

[00:02:52] It does feel like they are, though, you kind of keep looking like, can I really be this free? It’s, it’s a little awkward. I should lead this with, I’ve only worked for someone for six months. It didn’t last very long. I didn’t like it. I didn’t like the work. And I didn’t like anyone telling me what to do.

[00:03:12] I didn’t like being bored. There were so many things about it. So, I have been I’ve been an entrepreneur since my early twenties. That’s something that came very early in my career. So when I’m working with someone now, I can see the difference between if they are disciplined or if they have been required to be committed and disciplined.

[00:03:35] In other words, someone else is giving them the orders and they are complying with those orders. Whereas when you have your own business. You are the someone else. And so if you are not disciplined, you have to learn to become disciplined. So the very first thing is you have to choose. I want to have my own business.

[00:04:01] I am committed to the success for myself, for my clients and for the organization. And then you cultivate as if you were already successful. So the part that’s like a trip is clients are not waiting for you yet. So if they were, then you’d be committed to those clients. So you have to cultivate, you have to pretend, you have to pull the future forward.

[00:04:26] And then you have to imagine if there were a client there, would I show up on time? Of course. So you have to show up on time, but you have to do it for yourself. And if you have a low self worth or low self esteem, you’re probably going to struggle with this because you’re used to putting yourself last.

[00:04:45] But as an entrepreneur, as a business owner, you have to learn to prioritize, to commit, and to use discipline until the results show up. So you choose. You commit, you cultivate as if you did have a book full of clients, so you show up for yourself until the clients show up. And then you have to cut away any distractions, any excuses.

[00:05:10] You have to cut away laziness or sloth. You have to cut away procrastination. You have to start doing what is required of yourself, even though someone else is not watching you. And then you got to get up tomorrow and do it again. So those are the C’s of how to become a successful, profitable, sustainable business owner.

[00:05:37] Choose what you want, what is the business going to be, commit to the success of it for yourself, for your clients and for the organization. Cultivate as if you were already busy, you were already successful. That’s that’s going to be the key right there between the difference of the entrepreneur and the employee.

[00:05:56] It’s the cultivating part. You have to trick your brain to believe that you are already busy before the clients come. Because that is the activity that’s going to pull the clients forward. And then you have to cut away sleeping late, turning off the alarm. No one’s coming in anyway. I might as well wait and go later.

[00:06:20] You got to cut that stuff away quick. It is the thing that I see for wellness practitioners that is a ruin more than anything else. When I first started my business I had a hair and nail salon and tanning and when it wasn’t busy, it was so easy to just like close the door, just going to open later.

[00:06:48] I’m going to shut down these certain hours. I don’t want to hire anyone if no one is coming in. Guys, don’t do that. Prepare as if they were coming in and they will. That’s, probably the most value I can give you from this episode today. Show up as if you were in high demand and that there were for sure going to be customers there.

[00:07:16] And then what you do with the white space, the time where you’re waiting is you. Do activities that’ll bring them in. So maybe it’s some marketing, maybe it’s an email, maybe it’s running a special, maybe it’s creating flyers, telling people about something that’s going on. So until the client shows up, you use that time to bring them towards you.

[00:07:41] I’ll give you an example of that. Let’s say I’m a new coach or a new massage therapist and I’m applying these rules. So it’s like I made the decision I was going to open my own place. I’m committed to myself, to my clients, and to my organization. And then I’m cultivating as if I were already busy. But then when I get to the business and say it’s nine o’clock and there’s no customer on the books, I still go.

[00:08:08] Don’t sit at home. Don’t go do something else. That time is committed to your business. So you go to the business place. Maybe you put up something on social media. Maybe you reach out to some clients to see if they want to reschedule. You do followups with someone who called and inquired the day or the week before you do a revenue producing activity, which means sales.

[00:08:34] You need to be doing sales at least three hours a day. Sales and marketing, talking to future clients. Following up with people of interest and meeting new people at least three hours a day. So the white space that you show up when there’s not a client, that’s when you do this work so that there will be a client.

[00:08:55] That is a completely different mindset from employee. Employee, you show up, you clock in, if it’s not busy, you peddle around. Another thing that’s really interesting about employee versus entrepreneur is as an employee, you’re like looking to go run errands. You’re like, I’ll go to the post office, I’ll go drop that off, like anything to get out of the office.

[00:09:17] When you’re an entrepreneur or business owner, you don’t want to do that at all. You just want income producing activity. So if it’s not bringing money in, I don’t want to do it. So that is a mindset shift right there too, is like, okay, hold on. I need to order this. I need to go pick this up because it’s going to eventually lead to the future business.

[00:09:38] It’s going to lead towards money. So I have to talk myself into it. I have to really check in with my mindset and, and kind of move it around. So I addressed the first thing, which I think is the most important. You have to become accountable for yourself and your time. You have to be very disciplined and committed, and you have to pretend as if there were clients there until they are very first shift.

[00:10:04] The other part is doing the activities that don’t seem fun or interesting or exciting because it doesn’t have anything to do with a direct payment or a direct service. We tend to put that on the back burner. So as a massage therapist, maybe it’s laundry. Or you know, cleaning up, you know, just doing this, like kind of getting everything in order.

[00:10:29] Here’s another thing that’s interesting as a spa owner, a massage therapy, yoga teacher, yoga studio, fitness studio is I love to prepare the space for the client. And so it’s like, I want to make it smell good. I want to put some essential oils. I want to keep things fresh, maybe move them around a little bit so that the client has this freedom.

[00:10:48] Fresh new experience when they come in and as an entrepreneur, as an employee, you’re just like, sit down, put down your purse, get to work. But as an entrepreneur, you’re always improving the experience. It’s like this nurturing part of the business. And so the white space, the time, let’s go back to the example of you’re a massage therapist.

[00:11:11] You just opened your own place. It’s nine o’clock in the morning. You don’t have a client until 11 or 12 o’clock. You go to the office. Anyway, even though you’re not getting paid. And you do something that’s going to generate revenue. It’s going to, or the future is going to pull the future forward. You do something that’s going to speak to a potential client.

[00:11:35] You do some sales, you do marketing, you clean up, you prepare the space, you make it smell good. You, you’re going to feel good. You’re going to feel more excited, even though you’re not getting paid for it. Because the employee mindset is, they ain’t paying me for that. I’m not doing that. That ain’t on my pay scale, right?

[00:11:55] Completely different when you’re the business owner. You’re going to clean that toilet. You’re going to do that laundry. You’re going to maybe have to put up your own social media post. You’re going to have to get the place smelling good, looking good. The janitor at the office is not doing it for you. It is now your job.

[00:12:13] So these are just some of the subtle yet important shifts that I want to bring to mind. But let’s go a little bit further into that and say like, now you have a successful clinic or business, whether it’s. Let’s say 50, 60, 000 a year that your business is now generating. You’re a solopreneur, meaning you’re the only practitioner in the office.

[00:12:37] You’re serving the clients yourself. You’re doing your own marketing, your own promoting, your own cleaning. All of that stuff is your job, not the janitors, not the bosses. You’re not getting paid for it. Still having to do it. Okay. Now you’re making 50, 60, maybe up to a hundred thousand dollars. Something else you may not have considered is they are not taking responsibility for cutting your taxes.

[00:13:02] You, as the entrepreneur or the business owner has to get, again, comes back to discipline and commitment. You have to pull that money aside. You’ve got to, you have to know what your tax bracket is. You can estimate it, of course, and you might want to overestimate it so that you don’t get in a bind. And I’m not giving financial advice here.

[00:13:21] I am not a CPA. I’m not a financial advisor or expert. I’ve just been doing this for a very long time. And so it’s like, you just know in your mind, this is how I think about it, one third of what comes in that doesn’t get deducted due to business expenses, things that directly are taken in order to create more business.

[00:13:44] So that means the profit margin. I need to withhold 30% of that. So an example would be a hundred thousand dollars. Let’s say my business brought in a hundred thousand dollars and about it cost me, let’s say 55,000 in order to bring that business in. So electricity a Facebook ads, whatever, whatever the overhead was.

[00:14:07] So now I have $40,000 that I took home and lived off of. So let’s say it averaged about $4,000 a month. One third of that, if you don’t have anything to deduct from it, you are going more than likely, you’re going to pay in taxes. So you just kind of estimate it as your mind, in your mind, make sure that you’re putting it aside.

[00:14:28] Now, of course it comes towards the end of the year. You have that money. You want to invest in something that’s going to help for next year, then you can use it. You’re taking out the account though, and you won’t have to pay taxes on that profit. But just know , it’s a game that you’re constantly playing with money especially in the beginning I spent and still do most of my profit goes back into my business.

[00:14:57] And so I’m always looking at 10 xing my revenue. At the end of the year, let’s say it’s October, November. And I did 100, 000 and I want to do 250, 000 next year. Then I’m going to look at what will I be investing in next year? That’s going to take me to 250, 000. And is there any of that?

[00:15:20] That I could pull from my profits and pay for this year, knowing I’m going to be paying for it next year. Anyway, can I use that? And then you have to make sure that you can still live off of what is left. I hope that was not confusing and it was not tax advice. And it’s not at all what I’m saying. I’m just telling you what I have personally done that has grown and expanded my business every single year.

[00:15:45] When I first started, I remember thinking if I just make 200 a week as a stay at home mom. I’m happy. I really, like, I was fine with that. I was selling Avon. I was doing hair and nails. As long as I brought in 200, my kids got to have extras. We got to do things on the weekend. Like, that was my goal. Then I opened my own business and it, the profits right off the top when you have a brick and mortar.

[00:16:14] You’re lucky if you get 30 percent profit off of what you bring in because of licensees and fees and electricity and, you know, just hiring people and buying things and maintaining, you know, it’s like all of that costs money. And so then you have like 10 to 30 percent left. That’s yours. That’s your pay.

[00:16:35] That’s another thing that’s different. When you’re an employee, you go to work and they just pay you. They withhold the taxes or whatever those benefits are. And then at the end of the year, maybe you have a return depending on what’s going on in your household. But this one, you’re having a plan for all that.

[00:16:51] So your mindset definitely has to shift and you got to get over this BS that it’s a bad thing to pay taxes. You’ve got to shift your mindset around that. So I just think of it as, taxes go towards the roads. It goes to helping people until they can get started until they can improve their life.

[00:17:07] Maybe it pays for housing or assistance or someone’s food or someone who’s not getting child support. Like I just reframe that so that I don’t have a problem with it. And then I set my revenue target higher. So if I want to take home 60, 000, maybe I’ll be focused on bringing in 250 to 300 so that I can keep the 100, 000 and then knowing that I’m going to be, to be paying taxes.

[00:17:30] Does that make sense? So those are the shifts, just three of the shifts that have to happen. You have to take accountability and responsibility for yourself. The time that you show up and what you do with that time, you’ve got to do the things that you don’t get paid for, like cleaning toilets, cleaning washing sheets, taking care of the way the ambiance is inside of your wellness practice, as well as,

[00:17:54] being responsible for withdrawing your own taxes. I set up an account. So there’s a savings account and a checking account at my bank and I just automatically set it for a certain day and it just pulls it and puts it in there, pulls it and puts it in there. Now, at any point during the year, when I started getting to the end of the year, say there’s 50, 000 in there.

[00:18:16] I didn’t use it. Now some of you are living off of that. I understand. I’m actually putting it back into my business because I want to grow my business. So I will look at that and decide, is there something that I want to add to my business? So I have a ladies’ fitness gym, I don’t have tanning anymore, but maybe I want to bring in infrared sauna.

[00:18:38] I want to bring in a new spin bike or I want to invest in a cold plunge. I will look at that at the end of the year and determine is investing in that going to take me to my next goal the following year. Is that going to help me get to 500, 000? If not, I might decide just to pay the taxes on it and go ahead and keep the rest for myself.

[00:19:00] If it looks like it’s in alignment with the plan of the new goal that I want to meet. So let’s say, I have 100, 000 there. I know I’m going to pay about 30, 000 in taxes, but I really, really, really want this machine that’s going to cost around 75, 000. That 75, 000 I’m going to get a return on investment.

[00:19:22] Say I’m going to 10X it, I’m going to make 700, 000. I am for sure going to take the 75, 000 and invest. Make sense? So those are the, there’s lots of other shifts that need to happen, but those are the three primary ones. No one is looking over your shoulder. No one’s checking to see if you showed up for work.

[00:19:40] You’re going to be tempted not to go to the office when you don’t have an appointment. I am telling you that is the worst thing you can do. You need to get to the office at the set time, regardless if anyone is there. Whether there’s a client or a boss or a land, anybody, you just show up for yourself.

[00:19:58] You show up for the future of your business. So pick a time of your office hours. Get over the BS. That you don’t want anyone to own your time because if you’re in business, all of our customers own our time. It’s just how it is. So even social media owns our time because it kind of dictates where, when people are there and when we should post and when we shouldn’t post, there’s always going to be that.

[00:20:23] So you got to have the mindset shift. So pick a certain time that your office is open, commit to yourself. Practice discipline, I will get there no matter what. And listen, I know this is not easy. I owned two locations of fitness and we opened the doors, we had 5:30 class, so we opened the doors at 5 o’clock.

[00:20:41] And one was next door to my, my house, so I just had to walk across, but one was in the next city over. So I had to get in my car and go at 4:30 in the morning for 20 years, I’m telling you. And no one came to class. But I did not lock the doors and leave. I stayed, and then I took responsibility for no one coming to class.

[00:21:07] Or only one person come into class. And I went and started a new campaign. I started a new class. I got something. I was like, Hey, we’re going to change things up. Can we get 10 people to sign up? Can we get 10 people to commit? I use the time to either get my own workout in or to promote, to get 10 people to come to the next class.

[00:21:28] Is that, is that. Makes sense. And just having the doors open, being on social media, talking to people who were interested or who were current clients, I could maybe pull some of them forward to come in to tan. I could let them know, Hey, there’s no wait list at five o’clock in the morning. It’s a great time for you to tan.

[00:21:46] The beds are not so hot. The rooms don’t like haven’t been used. It’s fresh and no one else is here. So it’s a great time for you to come in your pajamas. Get a tan and then go home before your kids wake up. I used the opportunity to pitch to a new market, to bring someone else in by the conversation that I was having.

[00:22:08] So I filled up the white space.

[00:22:13] I implemented a strategy that was going to fill up the classroom. I took personal responsibility for it. Now what’s the difference between me as the business owner and an employee that I paid to open the gym at 4 30 or five o’clock. They got there on time and probably didn’t care if anyone showed up or not because they got paid.

[00:22:35] either way, and they prefer playing on their phone. So they were like, doesn’t matter to me. I get paid either way. But as the entrepreneur, the business owner, I don’t get paid and neither do my people. And so I use the incentive of. I want to grow an organization that offers opportunity that hires people so that they can grow, like whether it’s a stepping stone for them or whether it is an investment in what they want to do in the future.

[00:23:03] But I was thinking that way even 27 years ago. So the difference between them getting there, sitting behind the desk, playing on their phone and me getting there, cleaning up the gym, making it smell good, doing some promotions and marketing, which one do you think is going to bring money forward? The one who’s not guaranteed the pay.

[00:23:25] So that is the shift that you have to make as a new coach, practitioner, whether it’s you working for someone else or you working for yourself, that part is the same. Because if you are a 1099 and you’re working for a massage studio of some sort or a clinic, they don’t, unless there’s an agreement that you’re an employee.

[00:23:48] You gotta hustle. So I would still get there on time, whether you had a client or not. And I would be talking to the clients who are coming in there. I would be saying, Hey, can I hit up our social media? Can I post something on your page? Can I offer a promotion? Cause I don’t want to be bored and not get paid.

[00:24:06] So I take responsibility. Many, many, many new business owners and entrepreneurs miss this part. That’s why they’re not successful. It’s not because people don’t want to pay. It’s not because there’s not enough people out there who want your service. It’s your mindset that needs to shift. Most of that comes from a lack of experience.

[00:24:27] You don’t really understand the difference. That’s one thing. The other is you haven’t fully taken responsibility for your paycheck because you’re used to someone else paying you. And you’ve got an attitude of buying, get paid. I ain’t doing it. You’ve got to ditch that. You’ve got to cut that away. That’s what needs to go and you need to replace it with, I’m taking responsibility for the money that I bring home, for the people that I serve and for the business that I grow.

[00:24:52] All right, my friends have an amazing week. Let me know what was the mindset shift that had to happen with you. Just from listening to this today, do you notice where you might still have a little bit of residue from the employee mindset? Do you notice where maybe you’re not taking responsibility for bringing clients forward so that you can get paid?

[00:25:17] And maybe where you’re not wanting to show up if no one’s there. which is going to lead to more people not being there. So instead get there anyway, commit to the time and then get to work on marketing, promoting and selling so that they can come and see if you can have fun doing it. Cause I, I know the hardest part is the marketing.

[00:25:39] We did not know when we became healing focused entrepreneurs or helpers of the world. That we were going to have to spend so much time marketing and promoting. We didn’t know we probably wouldn’t have signed up. But the thing is you did sign up and you are here. And if you can get that part right, you can have a profitable, predictable, sustainable business for yourself.

[00:26:03] And you get that steady money coming in. And then you can hire someone to help you. And then you can help develop and train them to be a responsible human in society also. Just like you are, can’t pawn it off. You can’t expect other people to do it for you. That’s the difference between employee and entrepreneur or business owner.

[00:26:24] All right. Have an amazing week.

Thanks for listening to More Than Mindset.

 

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