Owner vs. Employee

Owners can do things that employees cannot. Not because of their position, but because of their mindset.

Employees can make a company great, but owners make great companies. The difference between owner and employee is mindset: owner vs. renter. In simple terms, think of how you treat a rental car vs. your own car. I’ve never hand-washed a rental car, because the relationship is purely transactional. There are a number of contrasts between Employee and Owner:

• Employee comes to work each weekday. Owner lives the company every day.
• Employee thinks about next week, next month, next year. Owner thinks about 5 years and 10 years out.
• Employee adheres to the schedule. Owner lives with the output, so deadlines are secondary to quality.
• Employee treats colleagues as friends or associates. Owner understands that everyone is part of the same family.
• Employees want clients to be happy. Owner knows that if clients are not delighted, the business will cease to exist.
• Employees believe they can do anything. Owner internalizes that this is the only thing they will ever do.
• Employees do what is urgent. Owners do what is important and high leverage.
• Employees want to help others with their skills development. Owner systematizes talent development, knowing that skill growth is the lifeblood of the company.
• Employees adjust to fit the culture. Owners define the culture, through their actions.
• Employees want a nice workspace, to be most productive. Owner creates a nice workspace, based on their productivity.
• Employees are reactive. Owners are calm, analytical, and proactive.
• Employees are transactional. Owners are systemic about everything.
• Employees are enticed by upside. Owners protect the downside.
• Employees lobby for an investment. Owners understand return on every dollar invested.
• Employees have a marketing plan. Owners are promoting every minute of every day.
• Employees are first-level thinkers. Owners are 2nd-level thinkers.
• Employees are stubborn in their view. Owners change their mind as the facts change.
• Employees make small bets. Owners know that if it’s important, they need to put 1/3 of their resources behind it.
• Employees make all the critical decisions. Owners hire people they can trust to make critical decisions.
• Employees believe in shared responsibility. Owners know that one person has to be accountable.
• Employees have a tried-and-true approach. Owners find new ways to do things.
• Employees try until it’s become fait accompli. Owners refuse to accept that it cannot be done.
• Employees manage the business. Owners manage the people.

The distinction between employee and owner is not about position nor authority. It’s about the mindset and approach.