Business people are special in a very unique way. It’s the CEOs, presidents, business owners and entrepreneurs that create the jobs, create the innovation and create the economy. Business creates the strength of the country. Without business people taking a chance, risking it all, putting everything on the line, where would we all be? What would any of us really have? Going into business is a dream for many. It’s those dreams along with will – drive – determination that lay the foundation for a successful business. The key is to not just own the business but to be the leader of a growing company, year after year. If you come to work every day and just do “stuff”, spend your time “putting out fires” all day and never seem to have time to do the “important things” that need done, then you’re the head of a company in name only. It’s just a job. Without business growth and having the right people in place to help you operate the business, over the years, it will ultimately, continue to just be a job. From day one of being in business for yourself, the goal is to manage, organize and set up your business to be sold one day in the future. The timeline is totally up to you.
For instance, picture this:
You buy a house. Primarily, people buy a house because they want a place of their own. Much like when you start a business. People may want to own a home to raise a family in or to have a garden. People also buy a house as an investment. Over the years the house will, theoretically, grow in monetary value. Same with your business, it’s an investment – of time, money, innovation – that one day will perhaps be of significant worth from a financial standpoint. The stock market is another example. You purchase stocks that you believe will appreciate in value. Whether it’s a house or a stock portfolio, you know that one day you are going to opt to sell. When you do, you’re planning to make a worthwhile profit.
The basic theory applies to owning and operating a business. Someday you are going to want to move on from the business; to perhaps sell the business. In the interim, you need to work hard, have the business produce profits year after year while the company develops a favorable reputation in the marketplace. Over the years, the salary you take home from the business will permit you to buy the house of your dreams, to pay the mortgage off, make other investments, to have savings in the bank as the company continues to increase its value. When you are ready to retire, transition to other owners or just don’t want the responsibility that comes with a business, you’ll be able to make a profit as you close a door on a major chapter of your life.
Always set up your business to be sold. You can’t sell the business if it isn’t a true business that someone would want to buy. No different than the products or services offered at your company.
What is the definition of business that can one day be attractive enough to sell?
It’s a business that has various departments, such as: Sales – marketing – accounting – human resources – production – customer service – etc. depending on industry and how the company is organized. Each department is distinct yet part of an entire organization all working towards the same mission and goals. It’s like a fine-tuned machine working seamlessly without interruption.
A sellable business has management and employees in place. It runs so well that if you stepped away from the business for a two week vacation or was outside of the business for an extended period of time, the company would run itself and continue on. No one may even notice you are not in your office, at your desk or attending meetings. That’s a business you can one day sell. Yet most people own a business that completely depends on them. That’s why often times, CEOs, presidents and business owners, don’t take vacations. The business is too dependent on them being there; otherwise, the company begins to fall apart. Nothing happens as it should. The company isn’t as profitable.
It is essential to set up and develop your business, from moment of inception and consistently through the years, to be independent of you.
How many times have you seen a hugely successful company when its founder or leader leaves to seemingly lose its way, even if only for a period of time, which creates loss of employees, customers, its organizational structure, and ultimately, its direction and profits. The company loses its identity and place within its industry unless it can turn itself around.
Every area of your company needs to be profitable.
Your business plan is a detailed outline of how the company will be profitable.
Remember: You are in business to make a profit. Period. Otherwise, you will not have a business in the long term.
The employees you hire are there to perform functions which will make the company profitable AND to take the stress of running a business away from you.
The goal is to have a fully functional business so you can be the company visionary and strategist. Not the guy/gal running around doing everything and feeling stressed all the time because you have no time to be productive and live your business dreams.
No matter how many years you have owned and operated your business, take a moment for a reality check. Someday day you are going to want to move on from your business. The reasons will vary from business person to business person. That’s why it’s important to set your business up to be sold when the appropriate time arrives in your life. You want to leave your business with a point-of-view of being satisfied with whatever the outcome is.
It is the dream of countless numbers of people to own and manage a business. To be you own boss. Very few people step out and take the risk. Be proud that you did.
One day, in the future, someone may approach you and ask if you are open to selling your business. If your company’s accounting is all in order and you can demonstrate solid profitable statements throughout the years, it will be attractive to a potential buyer. You will also need to prove the company can continue without your leadership (though there may be a period of transition you agree to stay on for). The bottom line is: the company will continue without you being there whether you sell to another business person or you hand over the company to members of family.
As a CEO, president or business owner you don’t just have a job, you have a business.
To your success!
Business expert and strategist, Howard Lewinter, guides – focuses – advises CEOs, presidents and business owners throughout the United States across a wide variety of industries, to MORE success – MORE profit – less stress. Business people trust Howard’s vast business knowledge, intuitive insight and objective perspective to solve business problems and issues. Get MORE from your business. Talk business with Howard: 888-738-1855.
Connect with Howard on LinkedIn.
Follow Howard on Twitter.