Do you have a real business or just another J.O.B.?
One of the most successful franchise companies in history is McDonald’s! Ray Kroc was a genius creating their franchise system that made many entrepreneurs super rich and customers’ bellies full for cents. Franchise owners are still making very good money from it today. What was his success? He didn’t just create their franchise systems but created the system that is working for over 60 years and worth about $130 billions!
Why am I telling you this? Most people start their business for 2 main reasons: either to get out of their J.O.B. (Just Over Broke) and be their own boss – a bit similarly to Ray Kroc- or to fulfil their dreams, something they are passionate about. Whichever it is, we all hope that so many people will be our customers and before we realise it, we are crazy rich and we can do whatever we want.
However, the truth is far from that. Whatever your reason is for starting a business, soon you will realise that it’s not easy, not so many people are interested in it or not so many people know about it, it eats money rather than makes more of it and it is a hard work. You never worked such long hours before.
Then you start feeling that this is just another “Just Over Broke” syndrome (“J.O.B”) rather than a “Joy Of Being”. Does this sound familiar to you? If you are an established business owner and you are having the above problems, then you do not have a REAL BUSINESS! You just have another job. Not so good news, right?
“Are you working ON your business or IN your business?”
So how do you know that you have a real business?
Most entrepreneur’s starting point is wrong. They all start at having a business name – you know that cool name that you fall in love with – or a logo, a website etc. These are important elements that we can be figured out later and believe it or not they are not the crucial points when it comes to starting a biz. You must begin with the end in mind. What do I mean by that? You have to have an overall goal; you must have an exit strategy that you drive your business to. At the end of the day you might not want to do the same for the rest of your life, do you? I think life is much more than running one business.
What is an Exit Strategy?
An exit strategy is a strategic plan to sell your company to an investor or another company. You probably ask me “Why the heck would I you do that?”. Well, just think about it! What if you lose your passion towards it? Or it’s time to retire and there is no family member to pass it onto. Another reason is that you want to do something else which needs capital to invest in. Believe me the list goes on and on. In some cases, it is not even selling your company but replacing yourself with a very competitive person who can do things similarly to you while you are still earning by doing close to nothing. So it is always worth to start with the exit strategy. Exit strategy is not just defining when you want to sell your company, but it is a strategic plan how you get there, by what time you will get to this milestone. Once you have the end goal you have to reverse engineer and simply work backwards. This is going to result in a detailed plan on how you are going to achieve this end goal. But I wouldn’t settle with a plan…
“87% of all businesses will never be sold because most people don’t run their business in a way that they can legitimately sell it – they have no systems, no exit strategy and they’ll cease to exist.”
Time to increase your company value by 3-5 times!
When you have an exit strategy plan in front of you then it’s time to systemize your business and how you run it wherever you can. Create processes from day one. Start with the immediate processes that you do from your first day in business. Write them down how to process orders, how to handle telephone calls, how to hire someone etc. Each process is going to help you to achieve the overall goal.
Another problem most business owners face: investors and companies do not want to pay the amount the business owner thinks his/her company is worth! Do you know why? Because an investor aims is to buy a business that makes money from day one. Think about it: would you invest in a company which needs your attention and further investments in order to operate and sometime in the future makes money OR would you invest in one that makes you money from tomorrow? Let me guess! You chose the 2nd option, don’t you? So why don’t you have the right systems in place?
It is also your responsibility as a business owner to get your employees to write down how they do their work. So, when the time comes for them to leave, you are not standing there without the knowledge how to do their job. The knowledge that you paid for month after month. Especially writing down the processes your team uses in the early days of business will save so much time and energy for you.
Most entrepreneurs who turn to me have hardly any processes and systems set up. Even if they want to sell their business they are unable due to the lack of these very important written operational practices. I assist them to create an order from chaos, together we create a manual for their business which immediately increases the value of the company. It is possible for You to achieve that, and you can sell a business with a manual and a turnkey for 3 or 5 times more than a business without one. Are you ready to be the owner of the next $130 billion business?