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!
Assisting 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 nowhere 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 aren’t dependent on a person or set of key people. All these things are created by business systems. Systems allow you to lose and add people with little to no impact to the business. Does that sound good you?
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 their successor. Handing over the reins to someone else is hard for something that you’ve spent a large part of your years building. But, it is 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 adviser involved in selling a business and they’ll tell you business self-sustainability is the #1 thing true investors look for in a business!
A funny thing. Most business owners find their business growth doesn’t need to as big as you think to become self-sustaining. Find more explaining this fact and how to calculate it for your business in the post titled How Big Do You Need to Grow Your Business For Self-Sustainability? . Also, you can complete the form below and download our e-book “What Does It Take to Make My Business Self-Sustaining?”
So, how do you do it? A good question and one addressed in 3 Steps to Creating a Self-Sustaining Business. Or, you can start applying it to your business by joining one of our Business Growth Simplified Memberships.