Attention: Small Business Owners and Entrepreneurs
The BIG Problem With The Current Business Landscape
-- And How it's Changing The Future of Our Economy
From The Desk of William Ballard
Dear Small Business Owner & Entrepreneur,
Have you noticed that traditional jobs are becoming obsolete faster than ever before? Have you seen or read in the news about how technology and robots are replacing more and more workers?
In fact, fewer and fewer workers are even able to find full-time jobs -- and don't get me started on how hard it is to find employees these days who will actually show up to work, nevermind them being a decent contributor to the company.
If you pay attention to the trends -- like we do -- you would be able to see the writing on the wall -- that the old way of working and running a business is disappearing.
Wherever you are in your business cycle, you probably have a small hunch that something in the economy is changing, and you're right!
The old way of doing business (the old "job economy") is quickly becoming a thing of the past, and a new type of economy is emerging; it is what we refer to as the "skill economy" or "gig economy."
The TWO Factors Driving Us Into The NEW Skill Economy
First, there are fewer full-time jobs available in the market today. Secondly, the ones that are available are becoming WAY TOO EXPENSIVE for business owners and companies to keep.
Let's talk about that first one more for a minute. Have you seen the kiosks that are replacing cashiers at McDonalds these days? What about having to speak to an outsourced worker (often in another country) when you call into a call center?
The fact of the matter is this: the WORLD is changing - whether that be good or bad.
Moreover, most companies are only keeping on high-level executives and highly skilled team members as full-time staff -- everything else can be outsourced, automated, or contracted.
Understand this: The US labor market is structured in such a way that companies like yours are forced to pay higher taxes and offer the most benefits and protections for full-time employees.
What this means is that hiring a new employee can cost you 30 to 40 percent more than the equivalent independent worker (like us).
That then brings us to the question: would you pay 30 percent more for an new employee who does the same amount of work (or less) as another employee?
Let's put this into perspective: If you were buying a new car, and two dealers offered your the same car, meaning the same brand, model, and condition, but one dealer quoted you $30, 000 and the other $36,000, which would you choose?
Well, of course, most would pick the $30,000 vs. the $36,000 -- this is the same kind of decision companies are making these days when it comes to hiring new employees.
In other words, when a company hires a new employee what they are essentially doing is paying the $36,000, and perhaps even more if that employee stops coming to work altogether, which is more likely in today's workforce.
Think about that for a minute ...
... with full-time jobs disappearing faster than ever before, independent contractors or freelance type work is exploding and fueling this new Skill Economy.
People are being paid more and more based on their skills (and more importantly how that leads to producing results) rather than their education or credentials, experience in the workforce, or their specific job position.
The Law of Supply and Demand -
Not All Skills Are Created Equal
Now, it's important to understand that not all skills are created equal. In fact, some offer more reward than others. With that said, you're probably aware of the concept of "supply and demand".
In other words, when there is low supply, but high demand for something, it becomes more valuable. Likewise, when there is low demand for something, and high supply of it, it becomes less valuable.
This law works in the same way when it comes to skills.
With that in mind, this law (or principle) divides skills into two categories: low income and high income skills.
Low income skills are often in high supply, but low in demand, which is why companies often pay low for them. In other words, these skills are a commodity, and there are more people out there that possess them than there is demand for them.
Let's put this into perspective: imagine you are working as a cashier. There is nothing wrong with working or being a cashier -- in fact, there are many valuable lessons and high-income skills that can be learned and developed while working as a cashier.
However, it is a job that is often paid minimum wage (low income), and one that requires hard work. No matter how good or fast or how hard you are able to work that cash register, your paycheck will never reflect your increased efforts.
In contrast, high income skills are low in supply and high in demand, which is why companies will pay more for them.
The bottom-line is: if you have a high income skill, people will fight to hire you because of the increased value you are able to provide.
In fact, it was Jim Rohn who said, "We don't get paid for the hour, we get paid for the value we bring within that hour. We get paid for bringing value to the marketplace. Yes, that requires time, but we don't get paid for time, we get paid for the value we provide to the marketplace."
He goes on to say, "To become more valuable to the marketplace, don't wish it was easier, wish you were better. Don't wish for less problems, wish for more skills. Don't wish for less challenges, wish for more wisdom”
Finally, as a small business owner, when you hire a freelancer or a team of High Income Skilled contracting contributors -- like us -- you are then able to offer much more compensation for the value you provide to your customers and clients, you're able to become more flexible, and most importantly, experience a greater level of happiness and peace than you've ever experienced before.