If you want to build a business, you want to ultimately plan to build something that runs without you. If you must show up to your business, then you are working a job. In the beginning, you got to do the work. You’re going to be the one employing the people, training the people, building the people. In the beginning, you’re going to probably be serving the customers. There is no problem with doing these tasks at the start of your business, but if you are 10 years into owning your business and still doing this, there is a problem. Here are important things to keep in mind when planning to turn your business into an asset that eventually will work for you:
Add Value to your Business
Unless you are building your business as an asset, it isn’t worth the trials and tribulations. There is so much that goes into starting a business including risk. You want to build a business that you can overall take public that will become an asset. Even if it becomes an asset, you don’t necessarily have to sell it. However, having the opportunity alone is so much more valuable. You can keep it for multiple generations and build wealth for your entire family. If you are running a successful business and building it correctly, then your asset will eventually increase in value and continue to grow on its own. Once it is worth more and you are ready to sell, you can sell it to an investment firm or investor, rather than selling it to someone in your industry or someone that knows what you do.
Plan the Future of Your Business
There are three things you should keep in mind when starting to consider turning your business into an asset.
First is deciding by what date your business will be able to run without you. This can be further updated upon by deciding which date will day to day work get done without you at your business. When deciding what date you plan on your business running without you, you don’t have to leave but it gives you more options to focus on other aspects.
Second thing you want to focus on is setting the “How much money will my business make?” and “How much will it be selling for?” are both questions you should be asking yourself.
Finally, determine what value you want your business to be worth on the date you chose. It doesn’t matter if you want it to be worth 10 million or 20 million, you should have that number set in stone. If you can build a business where you know what it’s going to be worth, what its revenues and profits are going to be and by what date, then you have created a serious goal of building a business that can build you wealth.
If you see your business as a cash flow stream, then you already might have the wrong perspective. You should be looking to build more than a job for yourself but something that instead can fully run without you. If we don’t plan the future of our business into turning it into an asset that works for us, you may ultimately find yourself stuck doing the tasks that you don’t necessarily want to be doing. Get on 30X Business now to learn more about the importance of turning your business into an asset.