Business Owner vs Self-Employed

Would you believe that this is something I am still struggling with.

I had to have a discussion with a good friend of mine about this. 


And I thought to a large extent many people are confused by these two categories. 


They mistakenly think that being self-employed is being a business owner. 


My coach has been going through these concepts with me for a while now. 


He shared with me Robert Kiyosaki’s Wealth Quadrant (or whatever it’s called)


We’ve all seen it before right?


Here it is! Just in Case you haven’t

But we all know the facts. 


80% of the people exist on the left side 


and they hold like 20% of the wealth in the world. 


Where as on the right side 20% of people reside on that side and hold 80% of the world’s wealth. 


So you’re probably noticing that being Self-employed is on the LEFT side


20% of the wealth.


So you’re probably asking yourself how come working for youself doesn’t generate wealth.


Well this is how my mentor explained it to me. 


When you’re an employee you just have a job. 


You go to work, you perform your assigned duties and then you leave. 


At the end of each month, you are paid based on your time. 


For salaried people they are paid whether they “work” or not. 


For hourly paid people they paid once they SHOW UP 


Again – no work really needs to be done. 


The self-employed person says, 


“I want to work for myself! 


I want to control the hours I put out.


I want to feel more accomplished at the end of the day.”


This is a great and first step to moving out of the employee mindset. 


But there is a kicker! 


Being self-employed is only OWNING your job. 


What we don’t realize is that if you are on the left side of the quandrant you are doing what the rich never do 




Trading time for money only means one thing 


If you don’t work, you don’t get paid. 


As an employee y ou only have one job to do. 


As a self-employed person – you have the job of the HR department


The IT department


the Operations Department 


the Processing Department 


the Customer Care Department


It is no wonder many self-employed people pack up shop and go back to getting a job. 


They haven’t figured out that once you are trading time for money you will continue to drown yourself. 


Tomorrow I’m going to go into what it really means to be a business owner. 


Have a great one! 


Hilary De Freitas

Online Marketer, Operational Nerd and Mom



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Hilary De Freitas is a wife, mother, engineer and marketer. She is dedicated to helping mothers build a successful online business from their passions, so that they don't have to choose between career and family. Hilary has been involved in network marketing, affiliate marketing and digital marketing consulting for the past 10 years. Some of the links in this post are 'affiliate links.' This means if you click on the link and purchase the item, I will receive an affiliate commission.

    3 replies to "Business Owner vs Self-Employed"

    • Nick #thisyearinmusic

      I’ve never been self employed, but I know people who are. While they like the freedom that it brings, I think at times they would rather just be an employee.
      Good points in here!

    • Ruthanne

      Super things you brought up… I will read your next one tomorrow. Thanks!

    • […] So knowing that being self-employed is basically owning a job like we discussed in yesterday’s post […]

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