In case you haven’t noticed, in the soon to be future, most people won’t be able to rely on a 9-to-5 job.
Nowadays, people have to learn how to make money on their own so they can keep up with the rapid changes taking place in business and the economy.
So what’s the difference between the Employee vs Entrepreneur Mindset?
How can you make the successful transition from being an employee into entrepreneur?
To answer these questions, I am going to show you the main differences and how you too can become an entrepreneur even before you actually quit your job.
Entrepreneur Mindset Definition
First, let’s start off with what the definition of the Entrepreneur Mindset is and what it really means.
Entrepreneurial mindset refers to a specific state of mind which orientates human conduct towards entrepreneurial activities and outcomes. Individuals with entrepreneurial mindsets are often drawn to opportunities, innovation and new value creation. Characteristics include the ability to take calculated risks and accept the realities of change and uncertainty. – Financial Times
My simple definition is this…
The Entrepreneur Mindset means you THINK like an entrepreneur and ACT like an entrepreneur. You are a go-getter, a hustler. You are inspired by change. You have the desire to be in full control of your life and income. You don’t ask other people permission to do anything.
YOU are both the cause and reason for your successes and failures.
What’s the Difference Between Being an Entrepreneur versus Being an Employee?
The difference between being an Entrepreneur and being an Employee is pretty significant yet simple.
Unlike the entrepreneur, the employee really only has one thing to worry about and accomplish: show up to work on time and give satisfactory effort.
Employees get paid for the hours they work (unless of course you are a full time commissioned sales person) and then they go home.
Typically, full-time employees work 5 days a week and they get weekends off.
Entrepreneurs on the other hand, only get paid when they cause a sale of some kind to happen.
It doesn’t matter if an entrepreneur works 20, 30, 40 or 80 hours a week, they only get paid when they produce money-making results.
Entrepreneurs Take More Risks Than Employees
Another difference between entrepreneurs and employees is, entrepreneurs are by nature risk takers.
People who become employees and stay employees do so because they enjoy the SECURITY of having a job.
Full-time employees enjoy medical benefits, paid vacations, weekly / bi-weekly paychecks and 401k investment programs.
Entrepreneurs on the other hand, have to not only create a system for making money consistently, they are also on the hook for their medical costs and longterm financial needs.
Entrepreneurship involves risks as 80% of new businesses tend to fail.
So what do you do if you are an employee that truly wants to become an entrepreneur?
How To Make The Transition From Employee to Entrepreneur: 3 Tips to Follow
Did you know that 40 to 50 percent of students entering college in will be self-employed or will freelance at some point in their careers?
Having an Entrepreneur Mindset is something you should began to understand and have for your own financial security and future.
The biggest transition most people must go through when they go from being an employee to an entrepreneur is the MENTAL CHANGE.
You have to go from thinking about your life in the short-term to thinking about your longterm happiness and lifestyle goals.
There is nothing easy about being an entrepreneur but, the rewards are great if you can pull it off!
Ex-employees go from having the relative freedom they find in their off hours and weekends, to a new sense of freedom where sky is the limit.
1. Learn to Take Responsibility For Your Life
Entrepreneurs take responsibility for everything that goes right AND everything that goes wrong in their life and business.
A person can be just as unhappy as an entrepreneur as any fed-up disgruntled employee.
The advantage that YOU as an entrepreneur has over YOU as an employee is, YOU have the ability to fix your daily circumstances and create a business lifestyle that makes you happy!
Without happiness, what do you really have? Nothing.
By taking responsibility for your business, how much money you do or don’t make, you give yourself the POWER to make things right.
What may be an ideal business for one person may be totally wrong for the next person.
Remember happiness is the foundation of a truly successful business so you must take the time to truly discover what kind of money making lifestyle is best suited to your lifestyle goals and needs.
Don’t blame others for your failures. Own them, fix them and you’ll be happier for it.
2. Learn to Embrace Risks
Employment gives you security and low rewards while Entrepreneurship gives you risks with potentially very high rewards.
If you truly want to become an entrepreneur and ditch your current job, you must become comfortable with taking risks.
I’m not talking about risks like you might take playing the lotto or playing craps at the casino, I’m talking about the kinds of calculated risks that come with starting and running a business.
Whether you decide to become a freelancer of some sort or a full-fledged business owner, you have to take some risks to see just how successful or unsuccessful your business idea will be.
Risks could mean:
- Buying products
- Paying for Training
- Investing in a Website, Marketing, Paying for Advertising or other needs
No matter what it is, you have to figure out if you want to go after your dreams of entrepreneurship 100% or you want to rely on your 9-to-5 for the rest of your working life.
3. Make Sure Your Money is Right!
One of the biggest mistakes people make when they go from being an employee to an entrepreneur is under estimating how much money they are going to need to get their new found business idea up and running.
This was the mistake I made when I quit my job so, I encourage you to do your research and write out a full business plan first.
If someone pitches you on a business idea and they say, “It doesn’t cost you anything to start”, run for the hills!
All true businesses cost money to start.
The most simplest / cheapest businesses to start these days only require hosting, a website and your time…none the less, that is still a cost.
Besides having money to start your business, you’re going to need money to cover your expenses while you ramp up your income.
I recommend people to start building a business online while they are still working so that money doesn’t become the cause of failure.
Conclusion – Make The Transition From Employee to Entrepreneur, You Can Do It!
I encourage you no matter what your current situation is to start a business asap!
We live in a time where jobs and big businesses are folding everyday.
Jobs that were once a staple part of society are being outsourced to countries that pay workers pennies on the American dollar.
Jobs that used to require human intervention are being replaced by computers and the Internet.
The time is now for YOU to take your life into your own hands!
Don’t depend on other people’s businesses to take care of you and your family. Take control of your financial future and find ways to embrace technology.
I quit my job and started working for myself back in 2009.
My goal is to HELP YOU make a successful transition from employee to entrepreneur.
If you really want to make that happen, I know YOU can do it!