Don’t be the barrier in your business.
When starting a business, always begin with the end in mind. In the long run, you will one day want an offer on your business … that is how substantial riches are made. Additionally, there is usually a period when the founder needs to move to one side and let the business advance and develop to a considerably more elevated level. Subsequently, even if you have owned a business for a considerable length of time, you ought to steadily be preparing it to be sold and to survive and work without you.
It is never too early or past the point where it is possible to position your business to be sold.
I stress with each of my clients that in order to eventually have the company of their dreams – that is, a company that is truly worth a fortune and can be sold as such, their ultimate goal is to one day become the least important person to the day-to-day operations of the business. This is a hard concept for most business owners. We want to be important and needed – but that is the goal of having a job. Your goal should be to have a stressful business, not a job. While that sounds illogical, it makes perfect sense if you think about it. As an owner, you cannot afford to be at the center of every problem, every decision, every mess, and every transaction. If so, you will cripple the growth and development of the business and your employees. You should be needed and important, but not as a doer or Chief Everything Officer. You should be the leader, visionary and owner.
Long term, your business cannot depend upon your presence, personality, skills, problem-solving, or blood and sweat for its daily survival. If so, your business is not working for you, you are working for your business. And as such, are a prisoner of it! Instead, you need to make a free, self-maintaining, money-streaming machine. Rather than having the business be reliant on you, have the business be subject to the structure, procedures, frameworks, and individuals you have put in place.
When you can state you are no longer the most imperative individual to the day-to-day activities of the business, it will be a delight to own and manage. And, you will have a true asset that you could sell for a significant sum. Since your business is where you want to create your real wealth, you need to position yourself to generate as much equity in it as possible. It is like a house: it is not the value of it that matters, it is the equity that you have in it. The truth is that a company is never worth its full value to a buyer if you (the current owner) has to come along in the purchase to make it run. No one wants to buy your JOB or a broken business. If you find someone that does, they will be willing to pay very little for it.
From the very first moment, or when you can, structure and work your business so you are NOT the most critical individual to its day by day activities.
- Work to not be hands-on with each activity; be more of a technical specialist.
- Avoid being a micro-manager or the Chief Everything Officer.
- Do not be in charge of, or have to work in, every box in the organization on a daily basis.
- Build a business dependent on systems not on you for everything.
Rather, as the proprietor, you ought to be a generalist and a pioneer. Give the vision, authority, business frameworks, and the energy, but not the blood, sweat, and toil, regularly. Rather than working long-hours “in” the business, work “on” the business. Your job is to create jobs for others, not create and work multiple jobs yourself. With the ultimate goal and end game in mind, you will do the correct day-by-day activities to create a customer-serving, money-making machine that is independent of you. Think and act like a CEO, not a run of the mill entrepreneur.
Growing an effective business resembles bringing up and cherishing your children. As a parent, it is important to start with the end in mind, that of raising independent, self-sufficient, wonder adults. Business is the same. Work to give your business the proper foundation and training so that it can fly on its own. And just like a parent, you will enjoy your child (the business) and be richly blessed by it.
Give your business a chance to grow up solid, independent, and autonomous by working to become the least important person to the day-to-day operations.
Need a good kick start to thinking and acting like a CEO? Call Weaver Business Coaching Today.