Business Owner vs Employee? Which is Better? | Dr. David Phelps

Business Owner vs Employee? Which is Better? | Dr. David Phelps

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– It’s David here from Freedom Founders. My question for you today
is, do you have a business or do you have a job? Think about it. Most of you who went to
school many long years, just like I did, worked hard to get to a point in life where you would graduate, have a license, have degrees, where you go out and
start your own business, your practice. That was like the top
of the mountain, right? Finally achieved it. Finally you can go out and start life and making money and paying off school loan
debts and upping the lifestyle a little bit. I mean, right, you worked so hard and
you sacrificed so long, you deserve it. Here’s the problem. Most professional practice owners, and that goes from healthcare, dentistry, veterinary medicine, optometry, podiatry, chiropractic, to lots of
other small business owners. The business itself is really a job. It’s a J-O-B. It’s a job. Now, for many, it’s a
good job, it pays well. But as the owner of a business,
you take on so much risk and so much liability. Is it really paying you what you deserve? Real business owners,
who truly own businesses, where their active
involvement on a daily basis, producing the service or product, is not a requirement of a true business. The owner actually is not involved in the day-to-day operations, like we are in the
trenches of our practices. A real business owner
doesn’t have to do that. A real business owner
focuses on the business, and not in fulfilling
the operational aspect. It’s not what we’re
taught in school, is it? We’re taught to focus
all of our constructs, our energy, on our expertise. Head, hands, what we do. How we serve our clientele, our patients. And that’s a great thing. Because it’s a great service, it provides great satisfaction. The problem, though, is
that there’s no real freedom when you’re obligated to
always trade your labor, your time, for those dollars. It’s transactional. Yes, you may build up some
value in your practice or your business that
you someday could sell, could harvest, and that’s
part of the nest egg that many count on when
they want to “retire” from active work. The problem is, you don’t
know what that’s gonna be, when you retire. The markets are always changing. Interest rates are changing. The desire for corporate
entities, which have brought a lot of liquidity into our
marketplace in buying practices, that may not be there two
years, three years, five years. Things change, so you can’t count on that, and even when you can, the multiples of selling
a professional practice, in which the income, the value,
is really highly dependent on the owner, doesn’t
ring a very big multiple. It’s not a real business. And again, I’m not putting
down what we all went to school to do. But I look at it as a stepping stone. Why do you feel like you
have to be stuck in a rut, in a trench, doing the
same thing day in, day out, for 30, 35, 40 years? I think it’s a terrible construct, and that’s what society, that’s what our profession,
what our industry teaches us. Just continue to invest
in yourself, which, that’s a good thing, but where is the ability
to leverage outside? To create real equity that
produces real cash flow whether we’re working it or not? Now, I did it in real estate. You can do it in business
or multiple businesses, you can do it, people have done it, it’s not easy, but it can be done. I just find that real
estate is so much easier. It provided me the
outside wealth and equity that I could leave my
practice some 15 years ago when my daughter was really sick. It gave me an option. It gave me freedom of choice. There’s five freedoms. Let me give those to you real quickly, just so you’ve got a framework. The five freedoms in life. The big one everybody
talks about getting to is financial, financial freedom. Right here, financial. I put it at the bottom because it’s the one
you gotta break through. Everybody wants financial freedom. Everybody wants to have some
number, some number of assets or capital, or money that
allows them to not have to work. Well, I’m not gonna go
deep in that hole today, but the big problem with
most of the traditional financial planning is it’s
all about accumulation. Just build it up, stack it
up, stack it up, stack it up. Have some big number that
hopefully will last you the rest of your days of your life when you stop active income. That’s a bad premise,
that’s a bad paradigm, you need to focus on cash flow. More on that on another subject. But that’s the first one. Once you break through financial, there’s time, there’s time. We sacrifice, we give
up, so much of our time and our labor to get the ball rolling that we spend 30, 35, 40
years trading that time. We should be transferring
that time, that sacrifice, early in life, to capital assets, real
businesses or real estate, my favorite, to produce the
income that we need or want without us doing the work. Who teaches us that? Nobody, nobody does. Next one is relationship freedom. That’s about the people that
you spend your time with. How many of you have
freedom in relationship? Now, you didn’t choose
the family you grew up in, but you did get to choose your spouse, hopefully you made a good choice there. Your kids, well, you chose to have them, so hopefully you’re good there. I’m talking about outside the family. Outside the nuclear family. Who are the other people
that you spend time with? Your staff, your business
partners, your associates? How’s that? Do you have true freedom there or do you feel like you’re
stuck with what you’ve got? It’s a choice. Do you have freedom there? What about freedom in
the people you serve, your patients, your
clients, your customers? How much freedom do you have there? Do you feel like you just
have, come one, come all, take everybody just because
you need to make the buck to pay the overhead? That’s not freedom if you have to do that. So relationship freedom, it’s huge. But you can’t have it until
you have financial freedom. You can’t have that until
you have time freedom. What’s the next one? People give up all the time, is health. They give up their health,
they put off their health, because they think someday, when I get all this other stuff done, and enough money stacked up,
then I’ll start living my life. I’ll get back and I’ll get healthy again. Well, for most people,
someday never comes. They don’t get there,
so they’ve been spinning on this hamster wheel all their lives, worn out, broken down, body’s broken, people in their lives also
with poor health or maybe gone. It’s too late. You’ve got to build these
things in at the same time. And then the final freedom
that very few people get to. That’s freedom of purpose. Freedom of purpose. Until you get through the other freedoms, you never know what
your real purpose in life is. I didn’t know until I broke through and had the freedom, made the
choice to sell the practice. Not that I have any regrets
about the years I spent in practice, but why do we feel like we have to stay in the
trenches all those years doing the same thing? You don’t really know who
you are, what you’re about, what true meaning and
purpose, significance you have in life, what dent do you wanna leave,
what impact do you wanna leave on your family, your community,
your colleagues in industry, the next generations, I
don’t care what it is, but you got a greater
purpose than just doing what you do right now. I promise you do. You just don’t know it. My key for you today is
reconsider where you’re putting all your time and focus. Yes, I know you gotta put the time in, you gotta put the time in your
practice, in your business, right now that’s what you do, it’s how you’ve been built. But until you start making some changes in the way you think, self-limiting beliefs that make you think you gotta do things a certain way. The ball really won’t change. Linear, linear improvement. Very, very slow, very slow. It’s not gonna transform your life. You need multiples, you
need exponential change. How are you gonna do that? You gotta change your environment. You gotta change what you take in, what you hear, what you
read, what you listen to, what you watch. People that you surround yourself with. I’m talking about mentors,
coaches, mastermind groups, people that are gonna
challenge you in the right way to stop thinking the way you’re thinking. Quit making excuses in your life, quit procrastinating, because well, you only know how to do it one way, the way you’ve been taught. That’s wrong, you’ve gotta
change your environment, change the way you act,
the way you behave, that will then change your life. Taking in more information,
just dreaming, hoping, thinking, running after
bright, shiny objects, isn’t gonna do it. You need clarity of
focus on the right steps to make it happen. You need people around
you that can give you a different perspective on where you are, where you’re going, and what
your unique abilities are. Can’t do that by yourself,
don’t try to live solo. Just sitting in your room
staring at your four walls is not gonna give you the
perspective that you need to make a change in your life. That’s my key for you. Make this a great year, but
to make this a great year you’ve gotta challenge yourself, and to challenge yourself,
you need other people to challenge you. Don’t try to do it by yourself. Just like a personal trainer,
you need someone there to stay on you, make you
accountable, step up to the plate. Don’t quit, no excuses, don’t give up. All right, remember, always
stay focused on your freedom, it’s been David, over and out. See you next time.

2 comments

  1. What else would you like to know about investing in a future video? Here is a great key freedom strategies playlist I made for you! https://www.youtube.com/watch?v=td3mAYLaE0s&list=PL6UzhmjhYcomKRn4mjDa6EtwvTrnrAIqN

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