The Biggest Misunderstanding
Amar Pandit
A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.
April 16, 2021 | 2 Minute Read
This is fairly common not only in our industry/profession but in many industries.
A person starts his own business in our industry with a lot of enthusiasm. He builds a certain AUM and then hits a growth barrier. He hires more people, adds technology, and hits another growth barrier. I will explain what a growth barrier is in a Future Post.
The best part is that he believes that he has built a solid business just because he has managed to accumulate an AUM of Rs.100 Crore or for that matter even Rs.500 Crore.
The reality is that he has managed to build a good book of business that leads to an income. This is very different from building a business. In very simple terms, this gentleman is self-employed. He has replaced his boss with himself.
Thus, the biggest misunderstanding happens when you think that you have built a business when in reality you have managed to build an income for yourself just like any professional.
There is nothing wrong with this approach, but you need to understand this key distinction between being self-employed and being a business owner. This will help you take some meaningful decisions to build value in your firm.
Ask yourself the following questions:
a. Can your firm acquire a client if you are not around for 45 days?
b. Can your firm operate without you for 30 days?
c. Can other people take decisions without you being involved?
d. Do you have team members in HR, Finance, Marketing, and other areas or are you the master of all trades.
There are many more but these 4 should suffice to give you a perspective.
If the answer to 2 of the above questions is a NO, you have steps to take to build a solid and real business.
What are the key steps for you to build a solid and real business?
Similar Post
Nano Learning
Practice This Today
If there is one skill that all of us need to truly master, it’s this. Have you guessed it? Let me give you a hint with a Maimonides quote: “The risk of a wrong decision i ....Read More
29 October, 2021 | 2 Minute Read
Nano Learning
Risk versus Regret Minimization
Many times, we are unable to make a decision because we are not sure of the outcomes. We rely too heavily on the outcomes. We miss the point that we can never be sure of anything r ....Read More
24 February, 2023 | 2 Minute Read
Nano Learning
Are you Playing Office Office?
I have seen many distributors and advisors playing Office Office. The game goes like this. We think if only I had this website or that team or that logo, I would acquire clients. ....Read More
29 January, 2021 | 2 Minute Read
Nano Learning
The Next Secret
Last week, I wrote about The Secret. If you haven’t read it, you can check it now (2 minutes read). Now that you know The Secret, let me share another one with you. Brad Stul ....Read More
25 February, 2022 | 2 Minute Read
Nano Learning
The Weakest Link
What do you think is the weakest link in your practice or business? Generally, there are many in every firm, but there is one that most people do not even realize exists. Can ....Read More
18 June, 2021 | 2 Minute Read
Nano Learning
Are you getting your Expensive Questions answered?
I truly consider asking meaningful questions as a Key Skill that all of us need to develop. However, I see a lot of focus and sometimes obsession on asking only technical question ....Read More
3 July, 2020 | 1 Minute Read
- 0
- 0
0 Comments