Do you consider your one-person operation a business?

[coldsummer]

Our friend @peble recently made this post over in r/Entrepreneur.

https://www.reddit.com/r/Entrepreneur/comments/fdxlh8/i_quit_my_job_only_5_weeks_after_starting_my

In the comments section there are a couple people discussing that she has no right in calling herself a business owner because she has no employees, and that she would be better referring to herself as a freelancer/contractor.

This kinda got me a bit upset, like who is gate keeping the business world. Does she market, sell, acquire customers, schedule and all the other tasks a business owner does, of course. Is it more cost effective, in her first 5 weeks of business, to do the actual "work" herself, of course. Sounds to me like she just cares about the bottom line.

I run a one-man business. If I wanted to have a much easier life, I'd find an employer and just show up for my 8 hours. Since Nick turned me onto Nick's (Bradley's) podcast I think a lot about mindset. In my opinion, she should continue to consider herself a business owner because that's where she's taking it. Kudos on the success @peble, cant wait for you to continue to prove people wrong.

 

[4dcook]

@coldsummer if it is registered as a business and it does business, it's a business. if u own it, you are a business owner. lol people complicate definitions.

 

[iarrthoir]

@coldsummer A business is an entity. So if it’s registered as a business, it’s legally a business.

 

[613jono]

@coldsummer Mental gymnastics for YouTube experts. My best years of business were when it was just me. The profit was absolutely insane. All the employees are good for is keeping me from turning down work. I have great guys working for me but I’d make more money per lost hair if it was just me. Owning a job is when you don’t have a viable exit strategy. There’s nothing wrong with that if you’re happy with your work and making good money, two things most employees aren’t doing. A business is a term for the tax man though. One man operation is a business if it’s taxed like a business. End of story.

 

[rls]

@coldsummer I am a sole proprietor, detailing cars. One thing I struggle with is building lasting value. As a sole proprietor, I'm not doing a very good job of that. If I want to sell my business, it won't be worth much, other than my customer list. However, if I grow enough to hire employees full time (I hire people to assist me sporadically), then I can grow the long term value of the business if I were to ever want to sell it, as I can manage the business, rather than 'do' the business. This is a distinction I struggle with and want to overcome. Just my 2 cents.

 

[davidpeter1]

@rls I had a business adviser say that if I didn't have employees, then I couldn't sell the business. I had never thought of before but I guess she had a point. But, as a startup, I am trying to get clients and succeed. I don't need to figure out my "exit" strategy yet since I can't predict the path the business will take.

 

[rls]

@davidpeter1 I think it makes sense to always be thinking of the future and that includes the far away future, when its time to retire. Having a goal of being able to sell your business is a worthwhile way to spend some time. Also, you don't have to predict every twist and turn, just have a roadmap and adjust it along the way.

 

[moshia]

@coldsummer Yes a one-person operation is a business. When you have success there are going to be bitter people, especially online, who show up. Which is evident on that post. Which is disappointing because it's an actual person starting an actual sweaty startup.

 

[mark1215]

@coldsummer Why are people so arrogant! She’s a business!

 

[mariemarie89]

@coldsummer I have been running my own leather studio for two years now. I think it's just the way you look at yourself. If you think you are a business owner you run it like a business and work on it in that manner and grow up. Thinking yourself as a freelancer kinda makes things a bit stagnant.
I mean they might think because they don't have a financial impact on other people's lives through the jobs they can offer other than themselves they aren't business owners. But it affects your long term outlook. You keep looking at it from a personal point of view and its just that. The truth is if you run an enterprise seriously no matter how many people are regular employees, you do end up delegating work even if it is contractual.

 

[qey]

@coldsummer who cares? it's a completely meaningless distinction

 

[davidpeter1]

@coldsummer I subscribe to the idea of a "company of one". There is a book by Paul Jarvis of the same name. I plan to add on freelancers and VAs as work load demands but I don't currently plan on hiring direct employees to give me the flexiblity to grow and shrink dynamically.

I think the difference in the concept of a business versus freelancer is how you present yourself. I sell my services to companies as a business. I am not an outside employee.

 

[chasmate]

@coldsummer Everyone can get sensitive on this one, but something I read once summed it up nicely: if you don't have any employees, you own your job. If you have employees, you own a business. There's nothing wrong with owning a job! The benefits are endless, we all know this. But taking on employee shifts your focus from working in the business to on the business and people with employees like to yell on reddit "Look! My life is busy and tough, I'm special!" like those without employees have it easy, which they definitely don't.

 

[mrxindeed]

@chasmate I agree and disagree with you. You own a job if you are trading a fixed amount of time for a fixed amount of money. You are right that once you have employees you have a business, and if you are a solo entrepreneur doing consulting/service etc. you own a job, but to me a solo-entrepreneur selling a product should be considered a business. In my opinion, if you make money while you sleep, you have a business.

 

[dpwell]

@mrxindeed My definition is more or less the same as this. Basically if you take a day off and your business keeps making money then you have a business. But if your income depends on you doing a service for a time-based rate then you have a job.

I.e. If you do window washing then you make money while you wash windows. Solo thats a job but if you have someone else helping then it's a business since they can make you money while you aren't working.

Likewise a product based business can sell even while you aren't working even if it means labour to package/ship stuff later.