At some point or another, we’ve all felt underpaid for the value we create for our employers. The truth is, when you work for someone other than yourself you instantly become an investment for that company. Investments must then make more money than their upkeep; otherwise that’s just bad business.
“We get paid for bringing value to the marketplace.” – Jim Rohn
In a recent 48 days Podcast by Dan Miller he stated that, “We should all see ourselves as being self employed.” What I love about this statement is that Dan is not saying we should all quit our jobs and start our own businesses but instead he is saying that we should understand that our value/salary is directly related to our ability to make money for ourselves or someone else.
Unfortunately the current educational system is set up to suppress our natural ability to sell, pushing more people towards employment rather than giving us the skills and confidence to create money-making system for ourselves.
Dan miller goes on to say that… “If you don’t think you could survive in your own business it says three things about you…”
1) You don’t think you’re good enough for people to pay you.
2) You’re not willing to build your own client base.
3) You want to be subsided by a business to make up for your weaknesses.
Although this may seem rather harsh, it’s true and is the reason why most of us hold off from ever going it alone.
Employed = Less Initial Leg Work → More Hours → Less Pay
Self Employed = High Initial Leg Work → Less Hours → More Pay
(This is a generalisation but you get my gist)
Whenever you take a job from an employer you can expect to earn around a third to a fifth of your overall value. For example, if you get paid £30k a year your employer will expect you to brings in between £90K-£150K or more in value to the company, that’s good business!
In an economy where competitions for jobs is writhe and average is over, it’s those who embrace the self-employed mentality of increasing their value for themselves, for someone else or both that prosper.