732: Being an Owner vs. Operator Part 1
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Are you actually functioning as the owner of your business, or have you simply created a job for yourself? In this episode, we break down five distinct roles we can occupy as pet care business owners, from owner technician to enterprise owner. We explore how our responsibilities, mindset, and definition of productive work must change as the business grows and other people begin taking responsibility. We also discuss why moving “up” these stages isn’t inherently better and why a successful solo sitter may be exactly where you need to be. Ultimately, we need to identify the role we are actually playing, decide which role we want, and make sure our daily work aligns with the business we’re trying to build.
Main topics:
Identifying Your Actual Role
Five Business Ownership Stages
Delegating Work and Authority
Shifting Your Leadership Mindset
Aligning Work With Goals
Main takeaway: “The problem comes when your current role is in opposition to what your stated goal is.”
There is nothing wrong with being the person doing the visits, making the schedule, managing the team, or setting the strategy. The question is whether the work you’re doing today actually supports the business you say you want tomorrow.
If you want a small, profitable business where you personally care for pets, staying in the field can be perfect alignment. If you want to build a company that operates without your daily involvement, but you’re still making next Tuesday’s schedule, something has to change.
Growth isn’t automatically the goal. Alignment is. What role are you actually playing in your business today—and is it taking you where you want to go?
Links:
A VERY ROUGH TRANSCRIPT OF THE EPISODE
Provided by otter.ai
We use the term business owner broadly, but owning a business and functioning as an owner are two different things. Your name can be on the LLC, while your actual job is bookkeeper, or scheduler, or pet sitter, hiring manager, operations coordinator. None of those roles are bad. They all are what we do on a daily basis. But it is important to know the distinction between an owner and an operator. Hi, I'm Meghan. I'm Collin. We are the hosts of Pet Sitter Confessional, an open and honest discussion about life as a pet sitter. Thank you for joining us today for listening to this episode. We hope it's helpful. Thank you also to our sponsors, Pet Sitters Associates and Pet Perennials. We also have a Patreon. If you don't know what that is, those are pet sitters and dog walkers, just like you, who love the podcast and want to give back. So, if that sounds like you, you can go to petsetterconfessional.com/support to see the ways that you can help out. An important question to think about is what role are you playing today in your business, it's probably different than when you started the business, and maybe different than where you want to go.
Collin 1:06
And not what role you think you're playing, but what role you are actually playing on the day to day. What do you what do you fill your time with? What do people go to you for questions? What problems are you solving? That will tell you because there tends to be a distinction there of what we think we are versus what we actually do, and we have to narrow that gap considerably and be very intentional about it.
Meghan 1:31
We also have to think about what role the business needs us to play. If my business needs to get taxes done, and I'm the only one who's doing that, well, that's my role right now. Even if it's not something that I like or that I'm particularly good at, it's something that is needed from me from my business right now. Then it's important to think about the future. What future role do you want to eventually play in your business? Is it the same one you're playing right now? Do you enjoy where you're at? That's what your business needs, and you want to be there in the future, or do you need to morph into something else or pivot into a different area of your business in the future? Think about if you applied for a job at your own company based only on what you did last week. What did you do last week? What were the tasks that were done? The role that you played? What position would you be applying for?
Collin 2:19
I probably wouldn't get hired based off, but yeah, it gives you some insight. At least because a lot of this is we get so wrapped up. Again, we talk about this so much, wrapped up in the day to day, the minute by minute, task by task. That if we can't take a moment to just think broadly, think bigger, and try and understand from a different perspective, if we don't do that, we're never able to make the kind of big shifts and changes that we need to in our business and for us as well.
Meghan 2:47
We think there are five different categories between an owner and an operator, and we're going to break those down and see which one fits you best and what you are right now.
Collin 2:56
And the first one is the owner technician. Think of this as somebody who would say I own my job. This is the typical starting point for everybody who starts a business. You got into business, and you were you got into business and were doing all of the work, right? You are doing every aspect of the work. And if you haven't read the book E Myth Revisited, it also goes down into categories very similar to this as well. It's a fantastic book, a fantastic read. But this technician position is really, I love the work, so I'm doing the work, and that's why I started the business. I'm doing most, if not all, of the services myself. I am doing the pet care and the client communications and the scheduling and invoicing and the sales and the marketing and on and on and on and on. Then everything is fully dependent on me as the person.
Meghan 3:47
And because you are doing all the work, if you stop working, your revenue quickly stops too because there isn't anybody else to pick up the work and keep it going. This is the end goal for many people. They want to continue to do all of the work. They enjoy that aspect, and that's completely fine. There's nothing wrong with wanting to personally care for pets and have a relatively small client base and make a good income and keep the business simple. Though, if you are looking for more, we have to get out of the mindset of well, nobody will care as much as I do. Nobody will, you know, walk Darcy like I do, or clients only want me. That's something that we struggled with before we hired. Of and that was true. There were some clients who were like, "Well, I only want Collin to do the walks. Okay, well, we are growing past that as a business. So get on the train or get off the train. And
Collin 4:39
Collin is very tired. But the other thing, the mindset that we get caught up in is it's just faster if I do it, and this is one of the hardest ones to overcome as being the the business, the owner, technician, because you are legitimately amazing at this. You are well practiced. You do have a large set of skills, and you're really good at what you do. It over to someone else does mean there are going to be some inefficiencies in the work, and we have a hard time dealing with that and wrestling with that.
Meghan 5:07
Or at least for a time, inefficiencies for a time when somebody's learning a new software or learning a new skill or learning how to do something. You know, you can have the best training program in the world. That doesn't mean that on day one they're going to do it just as fast and great as you, there is a learning curve for everybody.
Collin 5:23
Yeah. So just remember that the employees, and again, we are not going into the employee IC distinction here, but for the context of this, employees don't need to care as much as you do. In fact, they never will, and that's totally fine. They just need to a they need to know what success looks like, and B, they need to deliver the company standard consistently. That's it. And as long as those two things happen, we can feel okay and confident in them and their work. So in order, we this is part of the like someone else can care for the pets as well as I can, if not better, and that's that phrase. That's that statement that allows us, if you so desire, to move out of this category and into other categories.
Meghan 6:10
You can then choose to move into the stage of owner operator. I run the machine, and this is where a lot of people have one or two or three people. You've built a team here, and maybe mostly or completely out of visits, but you are still the central nervous system, the central point of contact for the business. You're still handling scheduling, client problems that come up, training, payroll, website, staff questions. They need someone to go to, and that's you. Just because you're not doing visits anymore or as many visits doesn't mean you are now free to live the life you want. There are still a lot of back end operations and managing that relies on you.
Collin 6:50
Yeah, you've just basically promoted yourself from pet sitter, dog walker to operations manager or
Meghan 6:55
hiring manager.
Collin 6:56
And this is there is that mindset of well, if I just get out of doing visits, then I'll have X, Y, Z. But what we fail to recognize is that the scale and the operational complexity that it takes to get and achieve that, you know, getting out of the field means that somebody has to do the rest of that work, and it feels really productive to be here. It feels really good because you are constantly needed. There is always something going on in the business,
Meghan 7:25
but there can be this push and pull because a lot of us do enjoy the field visits. So sometimes when we're behind the computer doing the admin work, we don't feel as productive, and so there can be this mindset of, "Well, I'm actually not doing anything. I'm not contributing to the business like I once was. But is there is this mindset shift that we have to do? Of I am still doing a lot of work. I am doing important work. It's just different work than I was doing before. If you are in this stage, think about if you are solving these problems because only you can, or because nobody else has been given the authority or system training to really solve them. You haven't promoted somebody else really to solve these problems or help you solve these problems, which sometimes means that every unusual situation eventually reaches us, the owner,
Collin 8:11
which becomes a big bottleneck because again, only you can prevent forestry. No, only you can answer the question about feeding, or only you have the authority, and this is what happens. We tend to collect the authority around the edge cases or around a lot of questions. Of only we can decide when to make changes to an SOP or protocol, or only we can decide when to do something, and people just have to ask us for permission.
Meghan 8:39
Well, that's interesting because it's very similar to how we can treat the field of we take the edge cases in the field of the owner who is not going to let anybody else walk their dog but me or the dog who's reactive and doesn't like to go this way but should go this way.
Collin 8:54
So we take on the special cases, the behaviorally needy, the interesting clients, all of that stuff, and it's it's part of this is I want to feel needed so I can feel valuable. I need to make sure that people need me for things so that I have personal value to give and that I am valued as a person because people look to me for things and that is-I mean-that's a-that's not a business thing. That's a personal thing,
Meghan 9:27
and that can sound very negative, which is not really how we're intending it. But we do, and this is just all aspects of our business. We can sometimes become too precious about things if we try to hold on to things for too long. When in actuality, there are people potentially better skilled that we should be handing these things off to. Yeah,
Collin 9:43
it's just asking about why am I doing things again. If you love taking on the special case animals because that's where your heart is, where your passion is, and where you genuinely have the skill, or or maybe you're not in a place to train employees to take on those special cases. Then yeah, you can take those on. There is this darker side though of I only take these things, and it's because again I have this need to feel needed and valued, and it's this personal thing that I'm bringing in that impacts my business operations.
Meghan 10:14
Well, and then it can feel like a burden, and then we start to get burned out because well nobody else can do this. I'm reliant on the business, and I have to continue doing all these admin backend things.
Collin 10:23
Yeah, the other negative mindset that comes in here is if I were to give authority to somebody, then I lose control. I feel like I'm losing control, and here's the feeling that you get: it's hey, I need you to go handle scheduling, and then somebody goes off and does that, and then we sit there and spiral because now I don't know what's going on in the company. I don't know if they're going to do the right thing. I don't know what's going on today. I can't answer questions if people come to me. I don't. We we feel we lose touch with our business, and that loss of control can be very terrifying because you built the business, and a lot of cases when we get to this stage in the business, it's easy to keep it all in your head. It's easy to have your hand and the pulse of everything going on in your business. When we start handing things off, we lose that, and we feel like I have no connection. I have no control.
Meghan 11:16
But at some point, we do need to trust the people that we put in the positions. We need to empower them with decision-making ability. You know, someone else can make the decisions.
Collin 11:26
It might it might not be how you would have. It might not have been the exact to the letter, you know, message that would have been sent. But somebody did do it, and there's training, and there's some protocols, and there's also just some things that I have to know to let go of as I give agency over to other people.
Meghan 11:45
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Collin 12:59
How to answer the phone? How to walk through troubling issues or hard things that come up. At this stage, you're typically making that transition from I personally train every single person that comes into the business to I'm developing the training systems. I'm training the trainers. I'm allowing people to come in, and and I'm not the first person a new hire works with, and my work increasingly becomes more and more focused on the actual hiring of people, of coaching, of accountability, of of setting and holding people to their KPIs, or managing the capacity of the business, doing all the one-on-ones with your employees, and if you are not doing one-on-ones, schedule some one-on-ones this week. They are so valuable, but it allows you to now start thinking about process improvement and larger, grander kind of things. This can also feel less productive, just as we made the the situation the switch from field into operations, going from operations into management. It can feel and it does feel less productive. the The reason that is there's fewer tasks, fewer individual tasks that I have to get done every day. I mean, there's just the hiring. Okay, does that end? How many boxes are checked off in that? There's no set list for a lot of the work that I am now doing at this category and at this stage in my business. But what we fail to recognize, what we have to recognize, is that my leverage, my impact on the business becomes even greater. Just imagine this: if you are able to train one person a day, max maybe two people a day in the field. That's what you can do. If you can train two trainers, and now they can train at max two people in the field, you have trained the trainers to train four people in the field on any. Given day, your impact, your processes, your procedures executed by somebody is now multiplied impact in your business. That's where the power comes from at this stage, and our ability to really change and steer and guide our business. It is
Meghan 15:20
crazy to think about it this way, but one good conversation with our manager can affect hundreds of visits, can ripple out, and make a broader impact on the culture of the company because they are the ones then going out and doing the directive, and that just it flows from there. When we have a system that gets improved, it can help and eliminate dozens of problems in the future. Client notes or hiring systems, getting people up and running with clients faster. Your role in the manager owner is less about solving the problem and more about developing the people. Again, managing the managers. They are the ones capable then of solving the problems.
Collin 16:00
And this is a wholly new and unique skill set to us. Think back. Okay, I am the owner operator. I am the the technician, right? That maybe that's I'm the technician. I'm really good at walking dogs. I'm really good at reading cat body language and behavior. I'm really good at writing an update. Does that impact my ability to develop a system to train people to write a good update. This is where the phrase of I people go. I don't want to hire because I don't want to manage people. I don't want to manage these things. And some of that comes from they. It's a lot of work, right? It is. Sometimes it's a recognition of a deficiency and a skill, ability, or knowledge in order to implement this. And so, as we move through these categories, and you decide where you want to land, another question that you have to ask yourself is: Am I able to do that? Am I able to execute those responsibilities really well? Because if I'm still thinking I'm I'm a technician, that's not the same kind of mindset where that is going to help me be a manager, owner, or anything else.
Meghan 17:11
Well, because managing people is obviously a lot different than managing a household of dogs. You know, we have different personalities. We have to mesh well. We have to know how they learn, how they want to grow within the company, how what structures you have set up for them to grow, how you teach best. There's a lot more that goes into. I mean, it's just different aspects. You're doing a lot of things at a visit, at a dog walk, at a cat sit. Now you're doing different things, but with people.
Collin 17:38
So the big mindset shift here is is I have to recognize I have to believe I have to be in the headspace to say someone else can lead others. There are leaders in my business, and this again is an identity shift for us because for a long time we were the only leader. I am leading, I am guiding, I am doing all things. People look to me. How am I going to handle when people start to look to other people in my business and not me? When they stop going to me for the questions and the answers and the problems, that that is something that we have to grapple with and be okay with.
Meghan 18:11
Well, and talk about managing the people. Some people who want to lead may not actually be fit to lead or be good leaders in in certain aspects. So it's also just as we mold people in the field visits of this is how we do a pet sit, this is how we do a dog walk. Now it's well, this is how we schedule. This is how we communicate with clients. This is how we communicate with other employees.
Collin 18:32
So talk about culture impact of of this is where I stop being the driver of the culture and I start teaching people the culture and how it's lived out. When we say, "Oh, what does it mean for my mission, visions, and values to actually impact people? This is that stage. This is where you can really start saying, "I again, multiplying effect, multiply effect. I am no longer the one who needs to influence every single person in my company because a) I'm not the one doing that, but b) I have to train the managers. I have to train the people well to take that into their interactions, so that the culture does continue to perpetuate itself, and it becomes what's done.
Meghan 19:09
Well, and that's why stage four is strategic owner. It's when we decide where the machine goes. I use the analogy of steering the ship. We are the captain. We've got a bunch of people on board our boat, and we have to decide which C we're going into.
Collin 19:23
Yeah, the day-to-day operations at this point are handling themselves. They don't need your constant involvement. You are not having to touch C guide. Understand. Have you don't have a mental model at this point of every second of every day of what's happening, and our our questions start to change when
Meghan 19:42
we are one level removed from the visit. We often ask ourselves, "Who is covering this visit, or what tasks are they supposed to be doing? But in this strategic owner phase, we are saying, "Do we have enough capacity for the next 90 days? We're about to go into some crazy holidays where we're going to need an abundance because I have clients." That book a lot over the holidays. We used to think, what should we charge this client? But now we think, is our pricing model working? Are we able to support the number of people that we have on our team?
Collin 20:11
What is profitable? What's not profitable? How do the fees structure into this? How do I stair step in? Does my 30 minute match my 45 match my 60 match my three hour, match my what is the whole thing cohesive and still allow the business to function and operate with the amount of you know labor costs and overhead, and I still can earn a living. We're at this level thinking about structurally how what's the cash flow like in my business is basically what we're asking at this point. And
Meghan 20:40
well, and talking about services, yeah, we used to say, "How do we get another client? What marketing do I need to do? Now it's what services and markets should we invest in? Do we need to expand more to serve more people?
Collin 20:52
You're thinking marketing direction. You're thinking full strategy, and I already mentioned profitability or expansion. You're thinking about acquisitions. What other businesses in my area would be a good fit, and we are we able to take them on and manage? And ultimately, at this stage, we're really thinking about risk, and not just risk as in like all the things that could go wrong, because safety and and all that is built in. This is risk to the business. What is on the horizon economically? What are going to be the headwinds when it comes to hiring or my pricing? Do I have a ceiling to the pricing that I'm actually trying to go for that I need to be charging? The
Meghan 21:31
decisions are very weighty because yes, I have a lot of people under me, but it's also if I change one little thing, what cascading effect down? What snowball effect is that going to have in the rest of my business? That's why it can sometimes feel scary to make decisions. A lot of pressure rests on us as the owner now.
Collin 21:49
And at this stage, or in this category of operations, as the the strategy person, you are doing a lot of thinking during your day. You're not doing a whole lot of doing or execution. You're thinking about pricing and trying to understand the calculations and profitability and where more money could be generated or where we could cut costs and streamline. You're when you're thinking about the leadership structure and the model of your business and how and who reports to who and how information flows through your business. That's a lot of deep thought and deep, deep time. And putting two hours of work into thinking about the right marketing strategy is going to feel very different than it did when you did two hours of field work and walked dogs and took care of cats.
Meghan 22:35
And it's just as important work, right? When we're out in the field, we're literally the one generating the revenue. If we aren't out there doing the dog walks, the dog walks don't happen. We don't get money. Same thing here. If we don't keep moving the machine along, yes, we're not exactly generating revenue, but we are in a sense because again, it cascades down. The dog walkers can only walk the dogs because I'm out there marketing, or I have a marketing person doing that.
Collin 23:02
Well, and people struggle at this level, this stage as well because the operational work, the the the doing the field visits or the training of the staff or the going out and doing the marketing and that stuff. There's an instant feedback and there's an instant satisfaction to your work. I walk dog, walk tired. Right? I sent update. Client said thank you. I trained. Someone got the the idea. I whatever, and this thing happened. When we are talking about profitability, marketing strategies, acquisitions, all that stuff, I mean that's 369, months removed sometimes from the overall ultimate goal and impact that you were hoping to get, and that that's hard to sit with, and just recognize that I am doing this work. This work is really important, and I get almost no, if any, immediate feedback on the results of my work.
Meghan 23:55
Which again is why the decisions feel very weighty. We'd like to tell you about our friends at Pet Perennials. One of the hardest parts of this work is when a client loses a pet. Pet Perennials makes it easy to show up for your clients in those moments with sympathy gift packages shipped directly to them. Their gift perks program has no fees and no minimums for small businesses like ours. Learn more and open a free gift perks account at petperials.com. The last category that we're going to talk about is the enterprise owner. That's where you say my business is now an asset. My company no longer depends on me day to day, my labor, what I do, and more than that, it also doesn't fully depend on my daily management. I can now kind of step out and maybe have a meeting or two a week, and the managers are now fully, pretty much running the business.
Collin 24:43
Yeah, your focus as the owner becomes stewardship. What's the what's the legacy of my business? Is this thing staying on mission, and is it executing on the vision from top down? What kind of capital do I have? Again, the the allocation. Of resources are those is that being done appropriately across the entire company? You're focused more on the culture, top down, and as it's being executed and actually lived out. Again, thinking about the risk, the opportunities. Now, this is at the enterprise owner category. If this is where you want to land in your business, your I will say, the single biggest focus that you can have is thinking about the opportunities and what comes next, and then giving that vision. You're literally saying, "I want to go. I want this is the thing I want to happen. You turn to the people and you say, "Make this happen.
Meghan 25:35
Well, and because of that, you can work a few hours a week. You can work 40 plus hours a week. It depends on how much drive you have, how much opportunity there is in your market or markets, and your overall desire to do that.
Collin 25:48
Yeah, it's this distinction between my choice versus a requirement, and that's what this this category gets you. Of I can choose to be as involved or not as I want, and the reason for that is because there are people who are managing, overseeing, and directing everything else in the operations. I get to decide where I want to be involved and how much I want to be involved. The
Meghan 26:10
company truly becomes an asset here, rather than just your place of employment or when you sign on for the day. At this point, it's more of a lifestyle business. Of you, again, you can choose how much involvement you have in it,
Collin 26:23
and that asset too is it affords you, it affords people in the business, it affords opportunities for your community. It actually is able to be giving back in other ways, in bigger ways, and has this more now. Okay, this is set up more long term. This is something that could and should last with the appropriate and good managers in place that you're also helping.
Meghan 26:44
Well, and I think at this level we think, oh well, you're a million dollar business or $2 million business. That's not always necessarily true. If you have a full time job that you are super passionate about, while also having this pet care business running, that is totally doable too. You don't have to be sitting on a throne with jewels all around you in this in this scenario. But if
Collin 27:08
you want to, yeah, and I think I think it's good good point. We did not tie the category of ownership to the revenue of the business, and I you're right. I think that's really critical to remember that this is up to me and my involvement. Now, yes, on a practical level, if I want to have multiple full-time managers, if I want to have multiple people who are executing in all categories of my business,
Meghan 27:34
that does cost a lot of money.
Collin 27:35
There are there are going to be some revenue numbers we need to be hitting to make that work. However, you can tie in various aspects of these, and there's a mixture here. Maybe you don't want to be involved in any of the hiring, training, onboarding, HR stuff at all. So you bring on a manager to handle that, and you take on other responsibilities, and so you have some help in areas of the business while you focus on others, again, the beauty of what we get to do is pick and choose and build as we want and need. The important aspect is that we are intentional about where we're headed and where we land,
Meghan 28:13
and that we make sure we are not tying success to any one of these. Because if I say, "Okay, well, I'll be successful when I reach owner operator, well, maybe I tried to hire a couple people, and I realize that I don't actually want to do that. I don't want to be managing people. Well, that doesn't mean I'm not successful. That just means that I really enjoy the field work and I want to live there, and that's fine.
Collin 28:36
Solo centers are going to have great income. I don't know if you've talked to one recently, but you can make a lot of money as a solo operator. You can have low stress. You can have excellent clients. You can have a flexible schedule.
Meghan 28:49
You can take the breaks you want. It is
Collin 28:50
truly possible to do that. It's not as though okay. Well, you're right. Like I have to reach. I have to reach level five in order to be successful, and that's the only way that I can whatever whatever like that the successful solo that person doesn't need employees simply because growth culture says that they should like you don't because people say grow grow grow grow grow go go go go go go go, you don't have to, and that's but again the problem comes down is when we tie success we tie perception we tie value, we tie our our need to one of these levels, and we think, okay, I got to get there, and then I'll finally be worth it, and then I'll finally make it. And we're fighting for things that we don't even want or care to have, or maybe practically our market can't support that, and that has to be okay with us too,
Meghan 29:40
or we may truly enjoy operations, and we want to remain deeply involved there. We're fine with letting go some other aspects and delegating those, but this is in our wheelhouse. We enjoy this, and we're really good at it. So we want to sit here for a while. The problem comes when your current role is in opposition to what your stated goal is. If you want to get to a point, but you are not super interested in doing the work to get there, that's when the problem comes in. If you want a relatively small client base that allows you to take breaks and you can kind of pick and choose and do what you want, and you're personally providing the service, that is alignment. That is that is good. But on the other hand, if you are wanting a million-dollar company, but you're also making next Tuesday's schedule, that is misalignment. You're not going to get there by doing what you're doing right now. Growth for growth's sake shouldn't determine that goal.
Collin 30:33
Because the other toxic area that this comes in is you, you, you want that that small lifestyle business. You want something a lot simpler and less complex, and yet we feel guilty and we feel peer pressured into trying to build the the million dollar business. And now I'm living way out of alignment just because someone else says I should. And that's where we have to regain control and take agency back over our business and where we want to be headed.
Meghan 31:00
So we've talked about the five different categories or roles in your business that you can be. Think about which one you are, which one you were, and which one you want to be in the future. On part two of this discussion, we're going to talk about how do you know what to build towards and the mindset changes that are needed for each one. We hope you join us for that. Thank you for listening today. We would like to thank our sponsors, Pet Sitters Associates and Pet Perennials. We will talk with you next time.
Collin 31:26
Bye
