Build an Asset NOT Just a Job – Entrepreneurship
Do you work your business like a job for a paycheck or do you build an asset generating an on-going annuity for you and your family? This is what separates small business ownership from true entrepreneurship.
I picked entrepreneurship as the 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. This is an example of how too many small business owners start their business. They look at it as a job, and do not build an asset for self-sustainability!
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 you view your business as a job. You’re thinking like an employee. You’re not thinking like an entrepreneur and build an asset with passive cash flow in mind as your income.
When you decide you’ve had enough and decide to exit your business this concept will kick you in gut. It will hit you hard. This is usually when small business owners seek my assistance. But, if you learn what you need now and apply it as you grow your business by building an asset, you’ll be ready to exit your business whenever you want. Besides, you should be planning for your exit now, not later anyway!
Build an asset in your business and it will generate 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 your business turning the crank. That is where my client is at right now. So, the work to build an asset in their 15-year old business begins.
So, how do you approach your business differently to build an asset? Easy- just follow the small business growth cycle. Start by determining if you have achieved the goal of the Foundation Stage of the small business growth cycle.
Next, grow your business through the Survival Stage. Successfully achieve the Self-Sustainability 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 Your Business Growth. To determine exactly where you’re at. From here if you need guidance on where to focus your attention, you may want to complete a Business Growth Assessment.
Most people seek my help when they realize that they are stuck between the survival and self-sustainability stage of the growth cycle. It’s easy to get stuck. But, I am here to tell you, if you make business self-sustainability a goal and priority in your business you can get there in 3 – 5 years!
As you begin thinking about your business plan for next year ask yourself this question, “Is my vision to build an asset like an entrepreneur or just a job like an employee?” Be honest as 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 helped you begin to build an asset in your business like an annuity?