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Entrepreneurial and The Self-employed

     Often “self-employed person” and “entrepreneur” are used interchangeably. However, there is a difference.


     Robert Kiyosaki says in his book, Rich Dad, Poor Dad, that your business should have the potential of increasing its profits even if you are away for 3 years. Most readers are running some sort of business, so think a while about what will happen if you go on vacation for 3 years. If your business will perish just because you're on vacation, you are a self-employed person. Self-employed individuals do everything by themselves: sales, bookkeeping, etc. That's why an entire business can depend on the owner being there -- that's why self-employed owners can't go on long vacations. Even though you hire some staff, if the business won't grow without your presence, you are running your business with the mentality of the self-employed.


     There are only two ways to get the job done: do it yourself or let other people do it. If you want to go on a long vacation (so you can't do the job alone anymore), the only option left is letting other people do the job. That means, rather than running the business by yourself, you'll have to create a "system" which generates money while it lets other people run the business for you. A business's profitability depends on how good the "system" is.


     Because other people run your business, you will have spare time. You can go on a vacation, or you can start another business. Here is the difference: self-employed people can run only one business, but entrepreneurs can run multiple businesses. Also, with the entrepreneur mentality, you can deploy your business nationwide or in multinational locations because you, the owner, do not have to be present at every location. There is nothing wrong with being self-employed, but if you want to run multiple businesses, you need to create a system and let others do the job. This is what Kiyosaki's rich dad did.

© December, 2012