Do you work your business like a job for a paycheck or do you build an asset which will generate wealth like an on-going annuity for you and your family? This is what keeps 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 hire his replacement. This is an example of how too many small business owners start and work in their business. They look at their business as a job, and do not build an asset for self-sustainability!
Your Employee Mindset Holds You From Building an 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 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 you’ll get a kick in the gut. It will hit you hard. This is usually when small business owners seek our assistance. But, if you learn what you need now? And, apply it as you grow your business. You build an asset as you grow the business. Then you’ll be ready to exit your business whenever you want. Besides, you should be planning for your exit now, not later anyway!
If you build an asset with your business, it will generate income. You just don’t have to go to work every day like a job! Wouldn’t that be great?!
Build an Asset that Creates Self-Sustaining Cash Flow
built as an asset it creates self-sustaining cash flowThe big difference is when a business is built as an asset it creates self-sustaining cash flow. In turn this self-sustaining cash flow provides you and your family with income for a very long time without being stuck in your business turning the crank. This 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.
If you have, then you work the 8 business growth factors of the Survival Stage to successful conclusion. This will get you to the Self-Sustainability Stage. Now you can retire from your business whenever you choose. Do this right and you can retire in 3 – 5 years.
Not sure of the stage of growth of your business? I recommend the article At What Stage is Your Business Growth. To determine exactly where you’re from here you may want to complete a Business Growth Assessment.
Get Yourself Out of Nowhere Landing
Most people seek our help when they realize that they are stuck “nowhere land.” 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 plan 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 do I want to be an employee with a job in my business?” Be honest, as you could find yourself poised for retirement in no time if you make the right decision.
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?
If you’re not there yet, it’s probably you’re missing something in the entrepreneurial mindset. I would recommend downloading our FREE e-book, The Missing Component to Successful Entrepreneurship by clicking the button below.
This is very good stuff, and it is good for those person who would like to open for his/er small business. Thanks for such a post.
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