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In this Episode see if you can spot what level of business owner you are on the Add10Progression and get a free PDF download workbook to help you move to the next levels. Let's get into it!

Hi there and welcome to this Episode, Episode number 7 of The #ADD10GROWSHOW. Now if you listen to the first six episodes so far they all build on each other and I am gonna take it further so you can learn the time, money and the team and all the different other areas that I have talked about.

And then locate yourself where you are on my Add10Progression, the progression of being a business owner and if you can be able to spot what level you’re at. And then learn what you need to do to get to the next levels to make your business work a hell a lot better for you to help you with not just the money and the time you get but the exit value which I haven’t got on here.

But I’ve got a couple of other fields but I’m just gonna shorten this presentation for this video. So let's get into it!

The Add10Progression

Okay, so what we’ve got here is the Add10Progression. There is 8 different levels of starting a business and where you want to move to. This is what I’ve typically done with my clients. I wanna show you the different levels that I’ve noticed in working with the clients that I've worked with since 1996. So let's start!

Level 8: Dreamer

Alright! At level 8, which is down the bottom, I’ll start down here. At this first level is the DREAMER. The dreamer is the person who wants to start a business. And you’ve all heard of them, and maybe you’ve got someone in your life, and maybe you are at some stage. We all were. We  were a dreamer.

And so, the money that they earn, the time that they spend. The money that they earn is zero and the time they spent working in the business, because they haven’t got one at the moment, is zero. But they probably spent quite a lot of time thinking about things but just don’t get going. So what they’ve got to do, the dreamer, is make a decision to start. And then they move up to the next area, number 7.

Level 7: Part Timer

The PART TIMER typically got, maybe some, responsibilities or they are not that very confident about their business ideas. That is they still keep their employment which could be part ­time or full­ time while they try to start their business on the side.

So the part ­timer, they might be able to earn, let's say another 9 thousand dollars a year, could be more, could be less. But that's what I’ve seen and they could be working anywhere up to, you know, 10­-20 hours extra awake, maybe 5­-20 hours extra awake to try and earn this income on the side to then try and replace the money they are working as an employee.

So what typically happens here, this person, they need to start working. Well they need to make a decision to commit. At some point they need to commit to taking the business full ­time. When they do that they move up to the next level. That is number 6.

Level 6: Sole Proprietor

The SOLE ­PROPRIETOR has got their own business. Now it could be a personal trainer, it could be a hairdresser, it could be a dog groomer, it could be an accountant, a professional. But they’ve got their own business and their other business and they started their dream job and that is owning their business.

So what typically happens? Now this is a sole­ proprietor. I’ve put a figure on here around about 80 thousand dollars but they could invoice more than 80 thousand dollars. But after all the expenses what they’re left with could be around about 80 thousand dollars.

And you know what? As a sole ­proprietor, as you probably going through or are going through, you could work up to 80 hours a week. Maybe more, maybe less. But if you're red lining you can get up to those figures.

So, this is sole ­proprietor. What typically is a sole-proprietor? You start off a lot of time, maybe not a lot of money. So you use more of your time to get your business going which is really cool. And what you pride yourself on at this particular level is doing the work rather than building a business. And that's what the challenge becomes.

As a sole-proprietor what you then need to do is to start employing. You're gonna make the decision 'cause you’ve used all your time and you're starting to get time crunched. So you want to put on some people and you start to employ. And that takes you to the next level. That's when you become a MANAGER.

Level 5: Manager

Now, I've named it a MANAGER, not a business owner because, typically, what happens is someone that has built their business at a sole ­proprietor level is very good at their task or what they do as a profession. But they typically haven’t learned about building a business that does that.

So they put into place people into their business and that usually the easy hires and I am not having a go at you. I’m just saying that this is, usually underneath this red line here, are the easy hires.

Who are the easy hires?

They are all the people that you employ because you don’t like doing a particular function in your business. That's the easy hire.

Why? Because once you get up over this line, I call this the leverage line, you start employing people that replace the work that you do. And that's where it can be really quite a challenge for us as business owners.

So coming back here, sole-proprietor has got really busy. Theyare  really good at what they do. They are a ninja and so they have to start employing. So they put people into their business and they typically continue to do a role in the business. So they are still IN the business. Under this line is IN and above this line is ON. So the sole ­proprietor becomes a manager.

Why a manager? Because the sole ­proprietor starts employing and they are still doing their work and they put on other people to do their job. But guess what? They have to manage those people and that's where, BOOM!, you can start really getting hit with your work hours.

Now I’ve put in the manager, a good manager can earn up to a few hundred thousand dollar in a managing position. But typically this position here proprietor or manager is where the returns can go down if you don't have your financial model right and if you don’t have enough customers to pay for all the cost.

This is where your marketing needs to elevate. From self-proprietor level you can get away a few strategies in marketing. But once you start employing some people you’ve got to have some marketing in place. It can no longer be ad hoc. It needs to start being automated to help you move through this progress here.

So all of a sudden the couple of strategies that work well here is starting to get stretched here. And you're starting to get stretched as business owner 'cause you know that you're good at here but then you start to fall into areas that you probably don't know all about - leadership, marketing, wages, financials, all those sort of things. And then they start to become an issue at this level.

So the manager, working up to 80 hours and they are working hard. They can earn good money but alot of people get crunched at this level. Now this level here, they're thinking "Do I go back to what I used to do and earn more money?" and that's less hassle. Or "Do I push forward and move up?" and I'll give you a case for that coming up soon. Now at 5 I've got manager.

Level 4: Professional

At 4 I've got PROFESSIONAL. Professional is very similar to the manager. The professional usually is someone that's , let's says, academically educated. They are professional, white collar. They are going to do things for themselves. Think of a lawyer, think of an accountant, think of an engineer or an architect. They are really good at what they do.

They've employed. So they've gone from sole ­proprietor. They've gone and they've employed the front of house desk, like a receptionist, admin, the people and the staff so they can do their thing. But they are the one that's responsible for the income generation in the business typically.

And so they can earn good money on that because of their qualifications and the law of supply and demand. There's not alot of people, there's not a lot of professionals doing a particular subject. So they can earn quite a good money.

But they are earning a lot of money. They are working a lot of hours to get that money. And they're having to manage the team as well which is kinda can get on you at times.

So where do you need to shift?

Well this people here they need to leverage and they need to build a team. So rather employing people to do the stuff you don't like to do then it's about employing a team to build the business for you.

Rather than you doing the hero job and earning all the money and having your support team kinda supporting you, you need to start bringing people in at your level to create the dollars as well so you can move out of being IN the business and ON to the business. And this is what the red line signifies.

Level 3: Leader

So this line here is called the leverage line. This is where the game changes when you're in a business because you become a LEADER. And I wanna show you a few things here.

This is 1. The dollars changes dramatically. You start to earning the millions here and it just gets to north of that. And then of course the time that you spend in the business becomes a choice.

At LEADERSHIP level, if you can think of someone in your life who's at a leadership level that builds a team that builds a business, all of a sudden they take a lot of holidays every week. Do you notice that?

And they are not doing a lot of work. But when they do work it's sure, it's concise, it's to the point and it's enabling their teams to go and do the work for them so that they don't have to be doing the work.

And that's where learning how to recruit and build teams that builds business takes the business owner from here to freedom. And this is where above this line is leverage line. This is where freedom is created. Freedom here and they are trappped down here in this first few rounds.

So this line, it's all about creating teams, creating marketing and a business model that is scalable without you having to do the dollar producing activity. You enable team members within your business to help grow your business for you and with you.

So the leader earns good money, is short on time. But here's another column that I haven't put on here, the exit value of the business. Below here you might be lucky to get a few, a couple of 10's thousands here, maybe a few hundred thousand, maybe up to a million as an exit value here if you have a good exit plan.

But here where the multi­million dollar exits start happening at this level. And then it just goes up north from there. Multiple millions here and 10's and hundreds of millions as you move up. Why? Because the business works without the business owner. That's where the leverage line becomes so important.

So as a leader can earn 1-­5 Million as an income and work when they want to and they're exit value becomes infinitely more than what it is down here. Then the difference between a leader and an entrepreneur, a leader is looking to expand.

Level 2: Entrepreneur

So let's say a leader might be in one particular big location. And they've got a number of team in place. They've got a management, they got a general management in place so the leader can now get out of the day to day running of the business and the business runs without them.

So that's good for a period of time but then they got the entrepreneurial spirit in them and they will say "It's time to expand". That's when they go from a leader to ENTREPRENEUR.

And the entrepreneur expands. It could be vertical integration, it could be horizontal integration, it could be just a roll out of all different locations for their business. And that's where the entrepreneur comes into play.

They've learned how to build a business and also how to build a team that builds a business so they can set up multiple businesses. The deal flow starts happening here. So as an entrepreneur the payoff can be quite huge as you would be aware. Now I've got five to twenty million. The time is a choice thing.

Now if you are this good at building your business, it's in your DNA they've got a choice to work and usually they'll overwork but that's their choice. It's not a have to because they've got the freedom and they want to build businesses because that's who they are.

Level 1: Magnate

And the step above the entrepreneur is to get to MAGNATE.

The magnate are the big price in your market or in the world. Some of them have crossed over to mainstream names where they are earning 20 Million or more. They've got the choice. I think they are Richard Bransons. I think they are Steve Jobs when he was alive. The magnates out there doing the big things.

They've learned how to build to get the product market fixed and build a team and automate the marketing and the team and the systems. And they are at this level getting all the deal flows so they can start their businesses on all the different locations with their skills.

Where are you on this chart? How far away are you from the leverage line? And what plan points do you have on this? Hopefully I have given you some good guide points on what it is that's happening in each of these levels so you can go "Okay, we need to go to the next level". And here's how to do it.

For me and my work, this little area here, between sort of a sole­ proprietor and just above the leader, these are the people I keep, that I can take up this ladder.

Now the Magnates are Eddie and Mitch from Bigcommere who I worked with. We've got Steve (Rollings) in the Entrepreneur level and we've got some others in there as well that I've taken from around this mark up into this area. And that's what Add10Coaching and Add10Services is all about, to take people that have got great talent, got a good business model and know in themselves that they need to grow through this ladder.

And then what we do at Add10 is enable epic business growth by making it faster and easier by planning out what it is you need to at each level to make your way up. And I will be showing you in the next couple of presentations in The #ADD10GROWSHOW number 8 and number 9.

In number 8 I'll be taking you through the accelerator, and I will be taking you through the growth curves to show you what you need and how you can use it to take your business and take yourself up this progression ladder for your business.

Thank you very much for watching. If you love this show please comment, like, share, tag all the people that you know that should be hearing this information or need to hear it. Thanks very much for watching.

Down below are my blog you'll find the download to get the pdf worksheet of this and I think a few pages and you can download that and go through together and put it on your wall and consciously work on getting yourself up on that ladder.

Thanks for watching and will talk again soon. Bye!