Did you buy a job? Or set up a business?

This is a key question to ask because sometimes, for an entrepreneur, it can be difficult to distinguish between the two. The big difference is that a business owner spends their time working on the business, as opposed to in the business or for the business. It’s a huge step to start your own business and the transition from employee to business owner can be a difficult one to make. So, how do you know if you’ve actually set up a business or really just bought yourself a job?

What is a business anyway?

Essentially, if you own a business then you should be in control of a commercial enterprise that is capable of functioning without you if necessary. Many business owners – especially those who are running start-ups or just entering the world of the entrepreneur for the first time – find themselves falling into the trap of micromanaging everything so that the work feels just like having a job. However, if you make yourself essential to every single function of the business then, not only will your time always be taken up, but you’ll also be preventing the business from achieving any real growth.

Key questions to ask to ensure you’ve set up a business

Have you created a marketing plan?

Marketing is essential to growing your audience, building a reputation and increasing sales. If you’re not in control of this then you’re not working on the business, just for it.

If you stepped back from the business would it still function?

A business should be a self-reliant, individual enterprise. If your business would instantly fail if you started to delegate then you may need to review the way that it has been set up.

Have you designed a recruitment strategy?

Gathering a strong workforce will be crucial to supporting your business through growth and evolution so a recruitment strategy is essential. There can be no genuine oversight of the business if this is not in place.

Have you set down in writing how every role in the business functions?

This is essentially a manual on how to run your business and feeds into the point about ensuring that it is independent from you. If this is just in your head, or exists only in a vague form, then the business structure lacks the clarity it needs to be truly separate from you.

Are you regularly involved in business planning?

This includes both an in-depth business plan and interim planning, such as a 90-day plan and financial forecasting. It’s this strategising and planning that gives the business its momentum and which will provide a way to steer it through challenges. If your planning is low key or non-existent then it’s likely that the time and money you’ve invested has resulted in a role rather than ownership of a business.

Part of the process of transitioning into entrepreneurship is learning to recognise when you’re straying out of the territory of being a business owner and into something more like being an employee. Asking these key questions will enable you to address where you are and what you need to do next.