You Are the CEO of a One-Person Business
Start thinking like one and be in control of your future.
A salary can be addicting in many ways.
That first paycheck feels so sweet.
It goes right into your bank account every other week.
You’re the goat being fed by its farmer.
And then you get dependent, just like your caffeine addiction.
Even if you say you’re not, you really are.
You become reliant.
You forget about your goals and dreams.
You think to yourself, “This sucks, but at least I’m getting paid.”
And then you adjust your lifestyle to that constant stream of income.
- Rent covered? Check.
- Need a new couch? Buy it.
- Want to go on vacation? Put it on your card.
Life isn’t what you expected, but you can’t complain.
There are always people doing worse than you.
Until they take it all away.
In the blink of an eye, your income goes to zero.
Just yesterday, you were laughing with your teammates, discussing the projects you’ll work on in the new year.
One Zoom call later, you’re cut off from the people you’ve spent almost every single day with for the past few years.
You’re left out in the cold, starving and alone.
The drug has been taken away but you’re craving more.
You need it to survive.
You can’t live without it.
If only there was a way out…
A 9-to-5 job is just a long-term contract.
Right now, you’re a contractor.
You and your employer signed a paper that locked you into a “permanent” contract.
If you haven’t figured it out yet, nothing is permanent.
Now, you’re laid off and your contract is over.
But what if instead of getting another contract, you become a CEO?
Instead of trading time for money, build a business that sells value.
You’re already running a business anyway.
Your life is a business and you are the CEO.
Just like a business, you generate revenue through your 9-to-5 salary.
Your operating expenses include rent, groceries, insurance, you know, the things that keep your life running.
What’s left after expenses are paid is your net profit or savings.
But the problem is, your revenue only grows a measly 3 percent a year on average.
Over the long term, you’re barely keeping up with inflation.
And in recent times, you’re losing.
If you’re lucky, it might grow 10 percent one year, but then again, you could lose 100 percent the next year.
The only way to guarantee meaningful revenue growth is by paying yourself.
Companies often become stagnant because they lack innovation.
When a new CEO takes over, they look for ways to turn the ship around.
Whether that means:
- Cutting costs
- Focusing on different priorities
- Entering new markets
So if something’s not working, they figure out a way to improve it.
Become a CEO of a one-person business and turn your ship around.
Be Magnificent
As of the end of October 2023, the S&P 500 was up 8.5%.
Not “magnificent” by any means, but not too shabby either.
However, the stock market has seven stocks to thank for holding it up this year, known as the Magnificent Seven.
These are the stocks that have outperformed the market as of October 31, 2023:
- Apple - 31%
- Alphabet - 41%
- Microsoft - 41%
- Amazon - 58%
- Tesla - 63%
- Meta Platforms - 150%
- Nvidia - 179%
Interestingly, if we look at the S&P 500 Equal Weight Index, which gives each company in the S&P 500 an equal representation, the market’s return falls to -4%. That’s a 12.5% difference just by removing the top seven stocks.
You might be wondering,
“What does the Magnificent Seven have to do with running a one-person business?”
Well, there are a few reasons why these seven companies outperformed the market.
🤖 The story of the year was AI.
Innovation that leads to customer value leads to financial gains.
Businesses that can adapt to changing environments can get ahead.
They reimagine the future and put a lot at stake.
But those big bets are what leads to big gains.
The minute you become stagnant is the minute you stop growing.
💰 They’re raking in profits.
The Mag 7 doesn’t just bring in revenue.
They’re profitable after paying off their expenses.
Revenue growth means nothing if it’s not translating to the bottom line.
Stay out of debt, grow your income, and keep your expenses the same.
You just cracked the secret code to financial freedom.
🌐 They’re diversified in income streams.
Many successful businesses start in one market, offering one product or service that they absolutely master.
After becoming more established, they venture out into different business units.
New developments, acquisitions, partnerships.
Take a look at Google.
It started as a search engine, but now it’s much more than that.
It’s Maps, Gmail, Android, YouTube, and the list goes on.
Expand your income streams as you grow in your career.
Working a 9-to-5 isn’t a bad gig.
There’s nothing wrong with having a job.
For most people, it’s perfectly fine.
If you can manage their finances and keep expenses low, you’ll be able to save and invest for a comfortable retirement.
But if you’re like me, you like challenging traditional mindsets.
“A salary is the drug they give you to forget your dreams.”
— Kevin O’Leary aka Mr. Wonderful
You don’t want to give up on your dreams.
Start thinking like a CEO.
Don’t stop innovating.
Become profitable if you’re not already.
Diversify your income streams.
And quit trading your time for money.
Own your life like a one-person business and you’ll be in control of your future.
