BY DAVID ONJILI
An interesting story is told of a caterpillar that lived on a clay pot that had a beautiful plant at the center which it wanted to partake of. It started trudging the circumference of the clay pot thinking that every movement drew it closer to the plant. The more it moved the ‘closer’ she got to her food atleast in its thinking. This went on until the caterpillar ultimately died without ever having come closer to the plant.
That is the sad story when it comes to financial knowledge and its application to many. We are busy doing things that do not free us financially. Wherein lies the secret? The choice between scalable and non scalable careers
When it comes to career choice,many opt for those that offer financial security. Their security here lies in the paycheck, employment benefits and the occasional pay rise. Over time individuals continue to earn the same value though a payrise is always given which makes them feel good whereas in real sense the nominal adjustment by employers only addresses inflation. Does that description sound familiar?
Understsanding scalable and non scalable careers
A profession where you are paid by the hour is non scalable, a casual labourer earning Sh85 per hour only has a 24hour day to work, at some point they hit a ceiling and cannot work more than a certain amount of time in a particular day and this limits the amount of money they make. Similarly, secure professions like medicine and banking can only work a given amount of time or serve a particular number of clients and this limits their earnings.
In contrast, a scalable career for instance consultancy,writing novels, acting allows you to make earnings without an increase in labour or time, Sauti Sol, (the famous Kenyan boy band) do not need to go to studio every time to keep earning from their song Nishike, neither do actors like Nkem Owoh or Wilbroda have to go to studios each and every time to keep earning from their productions.
Under scalable careers, fluctuat nec mergitur (fluctuates but doesn’t shrink) is the norm, those here are well adapted to volatile earnings as they know that at times they make good money and there are times the earnings go down. They are exposed to this fluctuation and thus lower risk of starvation as opposed to someone in a non scalable career who loses their job.
Caveat and a lesson from Americans
Whereas not all musicians will end up being Sauti Sol or actors being Nkem Owoh, in scalable careers there are high inequalities in earnings and effort, they create dwarfs and giants. Very few take a larger share of the cake leaving the rest to the others to share. Take a look at the Americans, a designer working at The NIKE plant in Oregon USA is paid astronimical amounts of dollars just to design the next pair of Air Max or AIR Jordan shoes, yet the very employees who manufacture the shoe and subsequently those who even repair them cannot be compared in terms of earnings.
Whereas the designer (thinkers) keeps earning for subsequent manufactured shoes without having to design them anymore, the employees who are manufacturing can only earn a certain amount depending on the shoes they produce and hours they work.
Yet, America as an economy encourages her citizens to be creative, it is home to Hollywood. Actors get paid astronomically because the government embraces and rewards their acting. It is home to Boeing aircraft and many Tech companies along the Silicon Savannah where tech wizards are handsomely rewarded for their inventions. In Kenya, an appreciation of our arts, music and even creativity cannot be celebrated and surely there is need to look into this untapped world and stop the herd mentality of believing that employment is the only way to financial freedom.
This is the large disparity between scalable and non scalable careers. It explains why the Kenyan economy in part is poorer compared to those of Western nations. We are not designers but rather manufacturers and repairers. The individual who came up with the revolutionary mobile banking concept of M-Pesa should be earning royalties, yet we can also see the rarity of the scalable careers being successful as Nicholas Taleb puts it in his book, The Black Swan.
The fallacy and rat race in the non scalable career path and lesson from IBM collapse
We all grow up and also encourage our children to do well in school, get good grades, go to college and finally choose a ‘stable’ career. By stable here we mean a regular salary at the end of the month. We live from paycheck to paycheck. This however, occupies most people’s lives, the careers too limit individuals’ personal growth and many end up with a limited amount of income to live with.
Yet, with tough economic times, the erstwhile believed to be stable careers are not anymore. Companies are closing doors while others lay off staff like national carrier Kenya Airways. Others are minimising working hours and reducing their staff benefits. As earlier stated, a non scalable career is heavily dependent on the man hours you put in and this in-turn puts a strain on the individual and they end up frustrated, stressed and chasing shadows.
People are always ashamed of losses and thus tend to engage in safer activities. Until its collapse in the 1990s, IBM was a successful American company but when it started facing stiff competition from other tech companies, it had to lay off staff. Employees were totally clueless and panicky as they were thrown into the world of job insecurity.
So it is not difficult to find a lawyer, doctor, plumber, teacher, baker, banker or technician hating their job. It has become a routine, something that does not inspire them yet they are comfortable with the paycheck at the end of the month or the membership their company gives them to certain clubs but still it is not fufliling nor are they financially free.
Is scalable career worth the risk and how to transition from non scalable
While it must be clear that not all musicians will be as succesful as Sauti Sol, similarly not all lawyers will be as successful as some of the top lawyers and their law firms in the country. Yet, a musician can still earn good money by plunging into music. Scalable careers are all risky ventures with fat tails, it is for those risk takers who want to be significant and not just be part of the crowd.
Most Kenyans who are formally employed in non-scalable careers indulge in scalable careers part time. Instances of lawyers and bankers doing Karaoke nights or acting are not new. Yet, such a category are those whom we can consider cowards who still want security from the monthly paychecks of their non scalable careers or to be fair, they have responsibilities like paying fees and taking care of their families and would not want to take the risk of leaving a stable income to venture into new business.
If a lawyer can set up their own law from away from a previous employer, the only risk might be having to go away with clients from your previous employer. Similarly, if you are a doctor or plumber the same applies. This might create bad blood between you and your previous employer but the risk may be worth it especially if you get a mega client as this could be your big break.
What if you set up your own business, large or small scale. This might free you from the rioutine 8 hour day, as you may end up employing qualified staff to run your business as you focus on the creative part and ways of expansion
You must be under no illussions. The path to a scalable career is not a smooth highway. Luck does play a huge part if Nicholas Taleb and his theory of randomness and The Black Swan is to be believed. Scalable careers are very competitive and there is no middle ground. It is either success or failure and you must be ready at the onset for long periods without a continuous stream of income and the unpredictability of the business.
To be free of the shackles of a paycheck, why not delve into a scalable career. The world is your oyster. Consultancy is a simple start.
