In this clarifying episode, Scott Ritzheimer, Founder of Scale Architects, shares how to decide whether you should stay in stage 1 as a purposeful employee or move to stage 2 and start your own thing. If you're a dissatisfied employee feeling pulled to launch but unsure if it's right for you, you won't want to miss it.
You will discover:
- Why level 1 can be the ideal stage for mastering your craft and living with stability
- How to become a purposeful employee instead of settling as a dissatisfied one
- What signs show it's truly time to move from level 1 to becoming a startup entrepreneur
This episode is ideal for for Founders, Owners, and CEOs in stages 1,2 of The Founder's Evolution. Not sure which stage you're in? Find out for free in less than 10 minutes at https://www.scalearchitects.com/founders/quiz
Scott helped start nearly 20,000 new businesses and nonprofits and with his business partner started led their multimillion-dollar business through an exceptional and extended growth phase (over 10 years of double-digit growth) all before he turned 35.He founded Scale Architects to help founders and CEOs identify and implement the one essential strategy they need right now to get them on the fast track to Predictable Success.
Want to learn more about Scott Ritzheimer's work at Scale Architects? Check out his website at https://www.scalearchitects.com/
Connect with Scott through his LinkedIn at https://www.linkedin.com/in/scottritzheimer/
Hello, hello, and welcome, welcome once again
Scott Ritzheimer:to the Start, Scale, and Succeed podcast, the only podcast that
Scott Ritzheimer:grows with you through all seven levels of your journey as a
Scott Ritzheimer:founder. I'm your host, Scott Ritzheimer, and today we are
Scott Ritzheimer:tackling a question that our culture, at least here in the
Scott Ritzheimer:West, rarely lets you ask: Do you actually need to start your
Scott Ritzheimer:own thing? Do you really need to quit your job or drop out of
Scott Ritzheimer:school to start your own business? Do you really need to
Scott Ritzheimer:take the leap and launch your own church or nonprofit? You
Scott Ritzheimer:see, especially over the last five, maybe 10 years, now we've
Scott Ritzheimer:been sold the myth that if you're not building your own
Scott Ritzheimer:thing, then you're settling, and that pressure pushes really good
Scott Ritzheimer:people to launch businesses and nonprofits that they never
Scott Ritzheimer:needed to launch. So let's figure this out, and whether or
Scott Ritzheimer:not they should is entirely irrelevant. What we want to
Scott Ritzheimer:figure out today is whether or not you should, because take it
Scott Ritzheimer:from someone who's helped 20,000 people do this, a lot of them
Scott Ritzheimer:shouldn't have, and take it from someone who's had probably just
Scott Ritzheimer:as many conversations with folks who are thinking about it, and
Scott Ritzheimer:many of them should have, but they never did, and so what I
Scott Ritzheimer:want, I don't want to talk you into, you know, if you should or
Scott Ritzheimer:if you shouldn't, that's not the goal of this episode. The goal
Scott Ritzheimer:of this episode, and quite frankly, for the remainder of
Scott Ritzheimer:this series, because this is part two of a seven part series,
Scott Ritzheimer:by the way, if you missed one, go back, because you're going to
Scott Ritzheimer:get some really, really helpful context for what this series is
Scott Ritzheimer:all about. Links in the show notes, just go back there and
Scott Ritzheimer:watch if you're on YouTube, or if you're on Spotify, or Apple
Scott Ritzheimer:Podcast, the video is available on all those platforms. If
Scott Ritzheimer:you're anywhere else, or if you prefer audio, you can listen to
Scott Ritzheimer:it as well. All right, so what we really want to figure out is,
Scott Ritzheimer:is I want to give you the information that you need to
Scott Ritzheimer:make the best decision about whether or not launching your
Scott Ritzheimer:own organization is right for you. So what we're talking about
Scott Ritzheimer:here again is the difference between level one being that
Scott Ritzheimer:dissatisfied employee, and the two alternatives to that, which
Scott Ritzheimer:are for this series, at least, which are to actually stay in
Scott Ritzheimer:level one, and instead of being a dissatisfied employee, become
Scott Ritzheimer:what I call a purposeful employee, and for the vast
Scott Ritzheimer:majority of people feeling the dissatisfaction of level one,
Scott Ritzheimer:that's the right way to go. So we're going to talk about that.
Scott Ritzheimer:The other alternative is to progress to the next level,
Scott Ritzheimer:which means moving to becoming a startup entrepreneur, and that's
Scott Ritzheimer:pretty cool for the right people too. But which one is right for
Scott Ritzheimer:you? Maybe even which one's right for you, for right now,
Scott Ritzheimer:because those are two different things. Reasons one. Let's start
Scott Ritzheimer:here. Reasons one. Reasons why level one might already be your
Scott Ritzheimer:ideal level. So, what are the circumstances that fit? How do
Scott Ritzheimer:you know if you have what it takes to succeed here, so first
Scott Ritzheimer:off, and this, this won't necessarily be true for a lot of
Scott Ritzheimer:you, but it can be, is if you're in a role, and if not, if you
Scott Ritzheimer:can find a role where you can build valuable, marketable
Scott Ritzheimer:expertise, so even if one day you're going to start your own
Scott Ritzheimer:organization, if for now, or even if you're not going to
Scott Ritzheimer:start an organization for as long as you're working, if you
Scott Ritzheimer:can find a role that makes you more valuable, that's awesome,
Scott Ritzheimer:that's fantastic, and and it might not be in your current
Scott Ritzheimer:role, you might have to do the hard work and vulnerable work of
Scott Ritzheimer:finding another, but if you can, if you can find a role that adds
Scott Ritzheimer:value to you and and creates marketable expertise that can
Scott Ritzheimer:only help if or when the time comes that you do want to make
Scott Ritzheimer:the leap and start your own organization, so that's the
Scott Ritzheimer:first one. Second one, can you work for an organization that
Scott Ritzheimer:values mastery and rewards excellence?
Scott Ritzheimer:Because one of the things that folks mistake, they think that
Scott Ritzheimer:if you're great at cutting hair, for example, that you should go
Scott Ritzheimer:and start your own hair business, because that's where
Scott Ritzheimer:you'll cut hair, but the truth of it is you'll, you can cut
Scott Ritzheimer:more hair, and you can, you can develop a greater mastery for
Scott Ritzheimer:doing that, and get more reward from it in level one than you
Scott Ritzheimer:can by going and starting a business doing it, because if
Scott Ritzheimer:you go and start a business doing it at most. Cutting hair
Scott Ritzheimer:is like half of what you're going to do, because you have to
Scott Ritzheimer:go find new clients, you have to deal with all the administrative
Scott Ritzheimer:stuff that comes along with that, you have to deal with the
Scott Ritzheimer:problems that come with that. There are so many other things
Scott Ritzheimer:that you have to do that aren't cutting hair, that if, if
Scott Ritzheimer:whatever it is that you do is what you want to do. You're
Scott Ritzheimer:probably going to have a better experience doing that in the
Scott Ritzheimer:context of an enterprise that already has other people to do
Scott Ritzheimer:all that other stuff. So, if you don't want to do all that other
Scott Ritzheimer:stuff, but you really just want to master what it is that you
Scott Ritzheimer:do, or you want to get in a role where you can master what it is
Scott Ritzheimer:that you do, then it's probably better to stay in level one than
Scott Ritzheimer:to start your own business or nonprofit, because your
Scott Ritzheimer:attention is going to be divided a lot in level two. Another
Scott Ritzheimer:reason why you might find that level one is a fit is if your
Scott Ritzheimer:vision for your life is to become world class at what you
Scott Ritzheimer:do, so this is closely related to the earlier point, and it's
Scott Ritzheimer:kind of the theme of this is like if you want to be great at
Scott Ritzheimer:what it is you do, now what is it that you do? It might be the
Scott Ritzheimer:actual skill, like welding or carpentry or cutting hair might
Scott Ritzheimer:be the trades, it might be the skill of leading a team,
Scott Ritzheimer:managing folks, like there are there are way easier ways to
Scott Ritzheimer:find fulfillment managing a team of employees than going and
Scott Ritzheimer:starting your own business or nonprofit, so if you want to be
Scott Ritzheimer:world class at whatever it is that you do, and generally,
Scott Ritzheimer:whatever the thing is that you spend your day doing, then
Scott Ritzheimer:that's usually easier to do within an organization than by
Scott Ritzheimer:creating one. If you are at a stage of life, if you have other
Scott Ritzheimer:things outside of work that will benefit from stability and
Scott Ritzheimer:predictability from a paycheck, from a work schedule, from, you
Scott Ritzheimer:know, the benefits themselves. Then that's that's a strong plug
Scott Ritzheimer:for level one, if you are willing to let someone else
Scott Ritzheimer:carry the organizational weight while you focus on your craft,
Scott Ritzheimer:then level one might be great for you, if you are on the, you
Scott Ritzheimer:know, average to less than average in terms of risk
Scott Ritzheimer:profile, then everything comes with risk. You can be fired from
Scott Ritzheimer:a job, just like you can be fired by an employee, but there
Scott Ritzheimer:is a much, much greater level of risk in creating something from
Scott Ritzheimer:nothing than there is from taking part in an organization
Scott Ritzheimer:that's already functioning, so if you have a, an average or
Scott Ritzheimer:less than average risk profile, then level one might, might not
Scott Ritzheimer:be a bad gig. So, the reason why I'm not necessarily talking
Scott Ritzheimer:about how to do that is because what I've found is that for most
Scott Ritzheimer:folks, if they develop a conviction that what they're
Scott Ritzheimer:doing is right for them, so it is right for me to stay in level
Scott Ritzheimer:one. Well, then what happens pretty quickly is you realize
Scott Ritzheimer:everything else is just a problem to be solved, and, and
Scott Ritzheimer:so once you understand the tensions to be managed, you
Scott Ritzheimer:won't own the thing, you'll have to work with other people in
Scott Ritzheimer:some way, shape, or form, you won't have absolute autonomy
Scott Ritzheimer:over how something happens. Those are tensions to be
Scott Ritzheimer:managed.
Scott Ritzheimer:Those just come with level one, but everything else, like a bad
Scott Ritzheimer:job, a bad boss, low pay, work that doesn't interest you, those
Scott Ritzheimer:are all problems to be solved, and you can solve them inside of
Scott Ritzheimer:level one without having to take the often foolish risk of
Scott Ritzheimer:starting something else, so those are all arguments for,
Scott Ritzheimer:hey, level one's not a bad gig. You can actually be a purposeful
Scott Ritzheimer:employee by solving some of those problems and just managing
Scott Ritzheimer:the few tensions that are left over. However, that's not
Scott Ritzheimer:everybody, it's not me, it's not the many founders that I work
Scott Ritzheimer:with to get to even level three, level four, level five, where
Scott Ritzheimer:you're being a CEO. Oftentimes the way to do that is to go
Scott Ritzheimer:through level two. There's a caveat for buying into an
Scott Ritzheimer:organization. We're not going to talk about that right now, but
Scott Ritzheimer:what are some signs that it's actually time to move to level
Scott Ritzheimer:two. One of the most common, actually, is that things are
Scott Ritzheimer:going really, really well in level one. When you look at it,
Scott Ritzheimer:this is an old stat now, but founders, successful founders,
Scott Ritzheimer:if you rewind the take. To what they were doing before they
Scott Ritzheimer:started their organization, before they jumped to level two,
Scott Ritzheimer:they, they're not unemployed slackers living in their mom's
Scott Ritzheimer:basement, they, they're actually typically employed, and they're
Scott Ritzheimer:making somewhere between 125% 175% of what people normally do
Scott Ritzheimer:in in that occupation, that means they're good at what they
Scott Ritzheimer:do. So folks who start the dissatisfied employees who
Scott Ritzheimer:become successful entrepreneurs, successful solopreneurs, and
Scott Ritzheimer:onward, they are, they're not failing most of the time, but
Scott Ritzheimer:the they're not finding fulfillment, and that's probably
Scott Ritzheimer:the clearest indication you, you have to build something, not
Scott Ritzheimer:just contribute, you're winning in your role, but it's not
Scott Ritzheimer:satisfying your soul, and you've tried, I would say, not even
Scott Ritzheimer:thought about, but you've tried to go to another place, and,
Scott Ritzheimer:and, and to find satisfaction in the work there, and here's what
Scott Ritzheimer:it boils down to. You should start an organization and move
Scott Ritzheimer:to level two if you can't do anything else, if your vision
Scott Ritzheimer:demands it of you, if your soul cannot be settled, and you give
Scott Ritzheimer:it a legitimate college try. Then, then it's time. It could
Scott Ritzheimer:be time for you to move. Well, let me say, it could be right
Scott Ritzheimer:for you to move. Timing is a little bit different, and so if
Scott Ritzheimer:you're, if you're trying, if you're thinking about starting
Scott Ritzheimer:an organization because you're not thriving, chances are pretty
Scott Ritzheimer:good you're going to make a bad decision. So, you really want to
Scott Ritzheimer:solve for thriving first, and then from a good place that
Scott Ritzheimer:still isn't satisfactory. Now you know that you know, and so
Scott Ritzheimer:for those of you that are kind of teetering on the fence,
Scott Ritzheimer:you're not quite sure, don't go to level two yet, yet instead,
Scott Ritzheimer:this is the timing piece I just mentioned. Figure out how to
Scott Ritzheimer:truly thrive in level one and become a purposeful employee,
Scott Ritzheimer:and from that position of I found this place where I can
Scott Ritzheimer:have mastery. I've done it, and it's still not the right thing.
Scott Ritzheimer:Then you'll know that you'll know that moving to level two is
Scott Ritzheimer:right for you, and, and so, what are some other things that you
Scott Ritzheimer:need to know about this stage? Just real quick, level one, you
Scott Ritzheimer:know, if you're choosing, hey, should I stay here. Level one is
Scott Ritzheimer:where you're not limited to what you can do, which is kind of
Scott Ritzheimer:cool, like from a size perspective, you can join
Scott Ritzheimer:whatever size organization works for you. Here's a really
Scott Ritzheimer:interesting point. There are, I would say, roughly half the
Scott Ritzheimer:population, maybe a little less will become dissatisfied working
Scott Ritzheimer:in a large enterprise because they're really designed for the
Scott Ritzheimer:more entrepreneurial space, but that doesn't mean that they are
Scott Ritzheimer:founders. There's a difference in being a founder and being an
Scott Ritzheimer:being entrepreneurial, those are two different things, and so
Scott Ritzheimer:there's a lot of folks who they don't need to start their own
Scott Ritzheimer:thing, they just need to go and work for a smaller organization,
Scott Ritzheimer:because it's going to fit them culturally better.
Scott Ritzheimer:So you can be in level one and work for a startup, right, as
Scott Ritzheimer:part of the team, you can work for a more established but still
Scott Ritzheimer:entrepreneurial kind of small business, if you will,
Scott Ritzheimer:medium-sized business, or many of you, about half the
Scott Ritzheimer:population, especially those who shouldn't be a founder. They'll
Scott Ritzheimer:find a great fit in a larger organization with a little bit
Scott Ritzheimer:more structure, a little bit more defined roles, and things
Scott Ritzheimer:of that nature. So one of the things you might want to play
Scott Ritzheimer:around with is just finding the right size organization to be
Scott Ritzheimer:part of, and that might do the trick for you. Activities, you
Scott Ritzheimer:get to do what you do best in this level. That's what's really
Scott Ritzheimer:cool about it. You really do get to focus the most on your craft,
Scott Ritzheimer:however you define that. From a schedule perspective, this is
Scott Ritzheimer:obviously changing a lot in COVID times, and with
Scott Ritzheimer:millennials and Gen Zs, where nine to five kind of isn't a
Scott Ritzheimer:thing right now, but nine to five isn't a bad thing. We've
Scott Ritzheimer:made being a dissatisfied employee equivalent to working a
Scott Ritzheimer:nine to five, and that's not true. You can be a purposeful
Scott Ritzheimer:employee working a nine to five, and that's a pretty damn great
Scott Ritzheimer:deal. Like, if you can show up nine to five, do something that
Scott Ritzheimer:you're passionate about and that you've mastered, that makes your
Scott Ritzheimer:five to nine life better. It doesn't make it worse, and so if
Scott Ritzheimer:your nine to five is sucking life out of you. Don't settle
Scott Ritzheimer:for that, but also don't buy into the fact that the only way
Scott Ritzheimer:out of that is to go start your own business or nonprofit,
Scott Ritzheimer:because that's a false choice. There is a middle ground there
Scott Ritzheimer:that's great. Pros of staying in level one, for those of you who
Scott Ritzheimer:think, "Hey, I might not need to start my own enterprise, there
Scott Ritzheimer:is zero ownership pressure, which means that, especially
Scott Ritzheimer:once you control for taking control of your situation, the
Scott Ritzheimer:chaos stays at the office, and this is one of those things
Scott Ritzheimer:that's hard. If you've never had the pressure of ownership, it's
Scott Ritzheimer:difficult to understand what that feels like. I was actually
Scott Ritzheimer:just working with a client and friend of mine who's going to be
Scott Ritzheimer:buying into an organization, and we spent a whole session just
Scott Ritzheimer:talking about the move from not owning to owning, and the
Scott Ritzheimer:pressure that that creates. It's financial, it's it's a lack of
Scott Ritzheimer:clarity, it's volatility. There's an immense pressure for
Scott Ritzheimer:owners, right? Which, when you become a startup entrepreneur,
Scott Ritzheimer:you're an owner, you're not in the owner stage, but or level,
Scott Ritzheimer:but you, you have ownership pressure, and the benefit of
Scott Ritzheimer:level ones, like it's someone else's problem, which is
Scott Ritzheimer:fantastic, and you get to focus on mastering what it is you do.
Scott Ritzheimer:There's there tends to be a lot more stability in something like
Scott Ritzheimer:this. There's a lot of pros here. There are some cons. We
Scott Ritzheimer:have to be honest about those. One of the biggest is just the
Scott Ritzheimer:what ifs. I see a lot of folks, and you'll see this with any
Scott Ritzheimer:person, regardless of whether they choose one or two, but
Scott Ritzheimer:there's a especially later in life. Well, what if I had done
Scott Ritzheimer:that? What if I had taken the chance? And so, for those of you
Scott Ritzheimer:who really should go to level two, but don't, because of fear,
Scott Ritzheimer:insecurity, anxiety, just a lack of intentionality in pursuing it
Scott Ritzheimer:might suffer from the what ifs that that can gnaw at you,
Scott Ritzheimer:especially later in life. You do have to play by the rules, at
Scott Ritzheimer:least to some extent. You have to engage with other people's
Scott Ritzheimer:priorities, and while that sounds like, man, if I could
Scott Ritzheimer:just be my own boss, I wouldn't have to do with, do with any of
Scott Ritzheimer:that. That's kind of never true, I guess. To some extent, it's
Scott Ritzheimer:true in level two, where you get to set your priorities, but
Scott Ritzheimer:what's actually happening in level two is your clients are
Scott Ritzheimer:setting your priorities, and then once you get to level
Scott Ritzheimer:three, you've got to have priorities that are shared with
Scott Ritzheimer:everybody else. Now you have a little bit more say in them than
Scott Ritzheimer:you would otherwise, but not full say, because, like, we're
Scott Ritzheimer:going to talk about in that episode, people need stuff from
Scott Ritzheimer:you, and, and so that's there.
Scott Ritzheimer:And then there's this temptation to phone it in. I think that's
Scott Ritzheimer:true of every level, but it's particularly true of level one,
Scott Ritzheimer:and so what this really boils down to is what's your vision
Scott Ritzheimer:for your life. What's the work that you want to do, and if you
Scott Ritzheimer:can achieve that vision, and if you can do that work within the
Scott Ritzheimer:context of someone else's organization, you probably
Scott Ritzheimer:should. If you can't, if there's a better way, and, and the, the
Scott Ritzheimer:way for you to get that, either the only, or at least the best
Scott Ritzheimer:way to get to that other way to create that other product, to
Scott Ritzheimer:add that other service, to help those other people, is to start
Scott Ritzheimer:an organization, then that might be the right call for you,
Scott Ritzheimer:because the world needs both. The world needs people who are
Scott Ritzheimer:world class at what they do. The world needs entrepreneurs who
Scott Ritzheimer:are changing the way that we do what we do. What the world
Scott Ritzheimer:doesn't need is more people chasing someone else's borrowed
Scott Ritzheimer:vision. We don't need more people buying the lie that level
Scott Ritzheimer:two, starting your own thing is inherently better than level
Scott Ritzheimer:one. That's patently false. And so, if you're sitting there and
Scott Ritzheimer:you're struggling with this question, should I start my own
Scott Ritzheimer:thing? Here's the great news that I want to end with. You
Scott Ritzheimer:have two really good options. I want to say that you have two
Scott Ritzheimer:really good options. You can find a way to stay in level one
Scott Ritzheimer:and thrive as a purposeful employee, or this might just be
Scott Ritzheimer:the moment where you make the call, you start getting ready,
Scott Ritzheimer:and you ultimately take the leap and start your own organization.
Scott Ritzheimer:In either case, I'm rooting for you. I'm excited for you. If
Scott Ritzheimer:you're, if you're a dissatisfied employee, there truly is really
Scott Ritzheimer:only one way to go, and that is up in one way, shape, or form.
Scott Ritzheimer:When you take control of the situation and you decide what's
Scott Ritzheimer:best for you, so that's level one for those who are thinking
Scott Ritzheimer:about going to level two. Hope this was great for you. If
Scott Ritzheimer:you're one of those folks who've already been there, you've
Scott Ritzheimer:already done that, you've already started your own thing.
Scott Ritzheimer:Then the next episode might be just the perfect episode for
Scott Ritzheimer:you. We're going to jump forward to the transition from level two
Scott Ritzheimer:to level three, and we're going to talk about this question of
Scott Ritzheimer:should you really hire and manage a whole team, or is there
Scott Ritzheimer:another way? We'll talk about what that other way might be in
Scott Ritzheimer:the next episode, and with that, you know your time and attention
Scott Ritzheimer:mean the absolute world to us. I hope you got just a little bit
Scott Ritzheimer:more clarity than you had before, and I cannot wait to see
Scott Ritzheimer:you in the next episode in this series. Take care. Hey everyone,
Scott Ritzheimer:ScoreTheimer here. Thank you so much for listening to the Start
Scott Ritzheimer:Scale and Succeed podcast. I hope this episode gave you
Scott Ritzheimer:exactly what you need for the level you're in right now. If
Scott Ritzheimer:you want to discover what level you're in, take our 10 question
Scott Ritzheimer:founders evolution quiz for [email protected] That's
Scott Ritzheimer:foundersquiz.com It'll pinpoint exactly where you are and give
Scott Ritzheimer:you tailored tips to move forward and reach that next
Scott Ritzheimer:level in your journey as a founder. If you got something
Scott Ritzheimer:out of today's episode, don't forget to subscribe, rate, or
Scott Ritzheimer:review. It helps us reach more founders like you, and let's be
Scott Ritzheimer:honest, it means a ton to me, my team, and all our incredible
Scott Ritzheimer:guests, so keep starting, scaling, and succeeding, and
Scott Ritzheimer:I'll see you in the next episode.