I picked this topic because I am up to my neck in interviews this week. A client finally admitted he didn’t want to do his job any more so we are trying to find his replacement. An example of how many small business owners start a business for a job, not to create an ongoing asset!
Do you find yourself in this situation? If you said, “yea but I need money to pay my bills.” Here is your first clue that your business is a job. You’re thinking like an employee. You’re not thinking like an entrepreneur and building you business like an asset.
When you decide you’ve had enough and decide to exit your business this concept will hit you in gut and hit you hard. This is usually when small business owners seeks my assistance. But, if learn what you need to now and apply it as you build your business now you’ll be ready at any time to exit your business. Besides, you should be planning for your exit now, not later!
Building your business as an asset generates income just like a job. The big difference is when built correctly an asset creates cash flow which in turn provides you and your family income for a very long time without being stuck in the business turning the crank. That is where my client is at right now. So the work of creating their business as an asset begins.
So, how do you build a business as an asset? Easy- just follow the small business growth cycle. Start by deteremining if you have achieved the goal of the Existence Stage of the small business growth cycle. Next, grow your business through the Survival Stage. Successfully achieve the Success Stage and you can retire from your business whenever you choose. Do this right and you can retire in 3 – 5 years.
If you’re not sure what the stage of growth of your business, I recommend the article At What Stage is You Business Growth. Most people seek my help when they realize that they are stuck between the survival and success stage of the growth cycle.
As you begin thinking about your business plan for next year ask yourself this question, “am I building an asset like an entrepreneur or just a job like an employee?” Be honest and you could find yourself poised for retirement in no time. If you’re not sure shoot me an email and I’ll be happy to assist you in determining your current situation.
For those of you that have already made the transition, tell us your story. What was your “ahha moment” that made you realize you just created a job and you began building you business like an asset?