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I remember when I realized I wasn’t thinking like a business owner. I was shocked. After all, I really enjoyed my job, and having the freedom to raise my kids and run my home. The bills were getting paid, and I was putting food on the table, but I was just waiting for jobs to be offered to me instead of going after them. My rates were low, and I felt strange asking for more money.
At one point, I found a job with a company that didn’t pay regularly, and when I asked the boss to pay my invoices, he tried to convince me that working for him was a very noble thing and I should do it anyway, even if he never paid me again! I was devastated by his dishonesty, but still I felt like it was my fault somehow. I was ashamed of it, as if I had brought that onto myself!
I began to realize that I had to start thinking about money and time as commodities that I was trading, and even if I really loved what I was doing, I had to set some clear boundaries.
My mindset needed to change, and it took some time for that to happen. So, how does a business owner think? What’s the most important aspect of being your own boss?
What’s the Difference?
First of all, let’s take an honest look at the similarities in the mindsets of business owners, employees, and hobbyists. Both work and hobbies can be creative, time-consuming, and fulfilling, and people end up specializing in what they do.
The differences start when you think about money. For example, most people don’t expect to make money from their hobby, although they may sell something occasionally. People take up hobbies that make them happy or help them relax, but when the hobby starts to encroach on their family time or finances, then it’s no longer healthy to think of it as merely a pastime.
The work category must be split into two groups: people who work for themselves and people who work for other people. Those in the second category (employees) expect a regular paycheck from their employers, and they do what the business owner (or manager) tells them to. They don’t have a lot of control over how much they get paid, or when they get paid, but they expect to be paid regularly and the same amount every month. The down side of being an employee can be having to ask permission to take time off and working with people you don’t like. Activities like marketing or networking might also be important, but they would be promoting somebody else’s company.
A business owner – especially a sole proprietor – does it all. In addition to doing the actual work (job or service) that is advertised, they also handle all the administrative and promotional work (advertising, marketing, taxes, scheduling, planning, etc.) until they can hire someone to do it for them.
When a hobbyist becomes a self-employed business person, managing money becomes more important. Their focus shifts from simply creating beauty to creating beauty with value, and from satisfying their own desires to trying to imagine what they can do to fulfil another person’s needs. When an employee goes into business for themself, they often draw from their previous work experience, but they also have to learn new administrative skills.
The Most Important Concept
It’s money, isn’t it? Well, actually no. Making money should never be your sole priority or the main reason you decide to open a business.
Not even your niche, or area of expertise, should be the most important concept. Think of your niche as “what you want to help people with”. Although your niche is the most visible thing about your business, it’s not exclusive. Other people work in your niche, and you can network with them. For example, Home Business Haven is in the “online business” niche, or the “home-based business” niche – along with hundreds of other websites, several of which were founded on the Wealthy Affiliate platform. We work together to help each other and our readers be independent.
To be clear, I do want to make money. This is why I have affiliate links in every post. And I love talking about business, especially home-based businesses, because being able to work from my home was such a lifesaver for me.
In fact, I think that working from home – as an employee or an entrepreneur – is a very healthy way to work if you set appropriate boundaries. It lets mothers and fathers be home with their children. They can tend their families and also teach their kids good work ethics, innovation, and healthy habits. (This might help you see what the most important thing about business is.)
The most important aspect of your business is your purpose: why you do what you do. With HBH, I want to help people work from home so that they can live their best lives. I want to help them find the best website platform, affiliate programs, tax exemptions, and health insurance.
I want to see people freed from anxiety about their future through independent work.
Shifting Paradigms: Be Intentional
When I realized that I was thinking more like an employee than a business owner, I decided I needed to surround myself with people who were already managing their own businesses successfully. I began to network, and in 2017 I enrolled a free course for entrepreneurs offered by a local association.
It marked a turning point in my professional life. I learned so much about business and my own work-related ideas and habits, and I met other people like me, who wanted to open their own businesses. Our teachers were a retired CEO and a retired banker, who taught the importance of having a business plan and being meticulous with money. A few lessons were held by a psychologist, who explained to us how we could improve our approaches with both customers and suppliers in different situations.
One psychology lesson that really impacted me was how your memories can affect the way you treat people when you meet them. Did you know that if you meet someone who reminds you of a person who hurt you in the past, you will treat the new person differently, even though they have never harmed you?
In 2020, I enrolled in University of the People, a tuition-free online university, where I earned an Associate’s degree in Business Administration. I was living in Italy and, of course, it was during the COVID lockdowns. I continued my teaching and translation business, but I also took one university course at a time until I finished.
If you think you need to learn a bit more about business, UoPeople could be a good fit for you. It’s completely online, so you can study when you have time.
The take-away from this section is that you need to set out on your business journey with some clear ideas about how to manage your business and yourself. But before your start, you should clarify your purpose, and get it down in just a few sentences so that you can stay focused. The best way to do that is to write mission and vision statements for your business, along with a list of your values.
Your Homework
The image above, created with Wealthy Affiliate’s DsgnPop Image Studio, shows that our values are the basis for everything we do. Our mission is built on top of our values, and the vision is the apex of our purpose. Try the exercises that follow to start defining these concepts for yourself.
Exercise 1: Values
Make a list of words that describe your core values, or rather, the characteristics that you believe are most important in life, such as: working hard, honesty, intelligence, creativity, punctuality, tradition, integrity, feelings, achievement, spirituality, freedom, courage, order, enjoyment, or health.
Do a Google search on values to get some more ideas. Your list will be different from everyone else’s.
The values that I want Home Business Haven to reflect are:
- Commitment to Excellence
- Healthy Life Balance
- Love and Respect
- Commitment to Personal Growth and Learning
Exercise 2: Mission Statement
A mission statement expresses what your business does and how it serves its customers and other stakeholders. It is written in the present tense. A simple mission statement is:
[Your Company] helps people (you can specify which group of people, such as women, retirees, etc.) do something by offering X, Y, and Z.
My mission statement for Home Business Haven is:
HBH helps people start or improve their home-based businesses by offering organized information, useful resources, and clear advice.to answer questions, solve problems, and encourage.
That’s what I’m trying to do now, but mission statements can change as the company grows. In the future, if circumstances change, I will revise my mission statement. However, I need a direction: a target to aim for. That is the vision statement.
Exercise 3: Vision Statement
The vision statement is your north star. It expresses the company’s future goals and identifies the impact you want your company to have on the world. Getting your ultimate purpose in writing will help you consolidate your business mindset. It sounds melodramatic, but I assure you, it is powerful.
Your vision statement should be aspirational, and it should reflect your values. You can also search the internet to understand how to craft a good vision statement.
To start clarifying your vision, think about:
- What do you want your company to become? Would you like to be a leader in a certain sector or a reference point for a group of people?
- What would you be known for? Examples could be: great service, great food, or impeccable design.
- What do you want your company to look like in the future?
Hard questions! Don’t worry if you don’t have an answer yet. Think about it. Take your time. I’m still working on my vision statement for Home Business Haven, but this sentence, written a few paragraphs back, could indicate the general direction.
I want to see people freed from anxiety about their future through independent work.
Get Help
Discuss your mission, vision, and values with people you trust, and find professionals to give you advice. Take the time to really meditate on your reasons for wanting to work from home, or go into business for yourself.
If you’ve written your mission and vision statements, or if you want to share your company values, please leave a comment on this post. I’d love to your new business flourish.
Your post hits hard because so many people fall into the same trap—working passionately but not actually treating their work like a real business. I appreciate how honestly you described that moment of realization, especially the experience with the client who tried to guilt you into working for free. Too many people, especially freelancers and home-based business owners, learn that lesson the painful way.
Your breakdown of the differences between hobbyists, employees, and true business owners is clear and practical. The shift from creating for personal joy to creating with purpose and value is a major mindset change, and you captured it well. I also like how you center purpose rather than money; it keeps the focus grounded and sustainable.
Your story about seeking education, networking, and refining your mindset is inspiring. It shows that intentional growth is what turns a side pursuit into a stable, meaningful business.
Thank you for acknowledging the struggles of transitioning into having a business. I think lots of people start out doing small jobs without thinking too much about it. They continue to work without seeing any real growth.
You know the saying, “if you don’t know where you’re going, you’re not lost”. Any activity has to have a purpose and a direction. Otherwise, it keeps meandering without getting any real traction.