What Is a Self-Sustaining Business?
I talk about a creating self-sustaining business all the time. In fact, it’s the core of the Business Growth Simplified business philosophy!
Assist small business owners in growing a self-sustaining business.
But, what does a self-sustaining business really look like? And, how do you know that you’ve created one?
The test to determine if you have a self-sustaining business is a pretty easy one.
Can you step away from your business right now and it will continue to generate a level of revenue and profitability that does not your impact lifestyle and that of your employees?
If the answer is YES, then you have created a self-sustaining business. If the answer is NO, then you are not there yet. You are stuck in what I can “no man’s land.” You’re profitable, but your business needs you in order to create that profit!
A Self-Sustaining Business and the Business Growth Cycle
Ok, so you know where you are, but what does where you want to be look like? That would be the Self-Sustainability Stage of the growth cycle.
So why aren’t more business in the self-sustainability stage? The main problem is the things that most people usually use to define business success, good revenue, a solid customer-base, a steady stream of business, and, most of all, good profit, are characteristics of the survival stage.
If you had all those things, wouldn’t you think that you were successful? Of course you would. I would say you were successful.
However, the success isn’t business success. It’s personal success!!!
Business success comes with creating a self-sustaining business! So, what does a self-sustainability stage business look like?
The main thing is its revenue, solid customer-base, steady stream of business and profits isn’t dependent on a person or set of key people. All these things are created by business systems which can have people added and lost with little to no impact to the business.
This is a big jump for a lot of business owners! But, it is critical if you ever want to have business success and a self-sustaining business.
I find the hardest thing for most small business owners is finding that successor. Handing over the reins to someone else is hard for something that you’ve spent a large part of your time for years building. But, a necessity if you ever want to sell or step away from your business.
Creating a self-sustaining business is what gives a business value. Ask any business broker or trusted advisor involved in the transaction of a business sale, they’ll tell you it is the #1 thing true investors look for in a business!
So, how do you do it? Well, you have to come back next week to find out. Next week my topic will be 3 Steps to Creating a Self-Sustaining Business. or you can take a look at the DE, Inc. resources for growing a self-sustaining business.