At a recent Cash on Demand private workshop Home Based business coach Andrew Reynolds talked to his students about the difference between buying yourself a job (being self employed) and being an entrepreneur.
Andrew Reynolds gave examples of businesses that one can buy. At the time of the workshop Andrew Reynolds showed examples of existing businesses which were advertised on line for sale, which included a hair dressing salon generating a net profit of just £7000 a year which was being advertised for £99,500….. a pub generating a profit of £18,000 a year advertised for sale at £350,000 and an internet dating site pulling in £25,000 a year in profit which the owners were offering to sell for £200,000.
“It’s outrageous” said Andrew Reynolds “there was an on line retail outlet being advertised for £5000 despite the fact that it was only generating profits of £500 per year.” Andrew Reynolds pointed out that at £500 per year it would take 10 years just to get back your investment. Similarly Andrew Reynolds also talked about franchises. Andrew Reynolds gave an example of an estate agency franchise which required you as the buyer to shell out £90-110,000, to – in effect – run a branch of that estate agency.
As Andrew Reynolds put it, in effect you are buying yourself a job.
Andrew Reynolds then gave an example to his students of an article that had appeared in a ‘making money’ magazine. It talked about a person who had purchased a franchise involving chemical products – and how the franchisee had been called out on Christmas day to drive 20 miles to deliver a box of detergent to a customer.
As Andrew Reynolds put it “I don’t know about you, but I don’t want to receive a telephone call on Christmas day from a customer asking me to deliver a package. That’s not why I started my own business”.
Andrew Reynolds then showed a video screen capture from his computer of his on line automated orders coming in over the Christmas period despite him not having to lift a finger. Andrew Reynolds said “that’s the difference being self employed (i.e. you are employed but you just happen to be the boss as well) and being an entrepreneur where you have the flexibility to determine your own working hours.