When beginning a business, always start with the end in mind. Eventually, you will one day want to sell your business... that's how substantial wealth is created. Also, there is usually a time when the original founder needs to step aside and let the business evolve and grow to a much higher level. Therefore, even if you have owned a business for years, you should gradually be getting it ready to be sold and to survive without you. It is never too soon or too late to position your business to be sold.
To eventually sell your company for a fortune, your ultimate goal is to one day become the least important person to the day-to-day operations of the business. Yes, read that again. While that sounds illogical, it makes perfect sense. As owner, you can not afford to be at the center of every problem, every decision, every mess, and every transaction. If so, you will hold back the growth and development of the business and your employees.
Your business, long term, cannot depend upon your presence, personality, problem solving or perspiration for its daily survival. If so, your business does not work for you...you work for your business. You'll always remain a glorified employee and prisoner to your business. Instead, you need to create an independent, self-sustaining, cash-flowing machine. Instead of having the business be dependent on you, have the business be dependent on the operations manual, processes, and people you have put in place.
When you can say you are no longer the most important person to the daily operations of the business, it will be a joy to own/manage and you could also sell it for a substantial amount. Since your business is where you'll create your real wealth, you need to position yourself to generate as much equity in it as possible. Here is your wake-up call... a company is never worth its full value to a buyer if you (the current owner) have to come along with it to make it run. No one wants to buy a broken business or if they do, they will pay VERY LITTLE for it.
From day one, or as soon as you can, structure and operate your business so that you are NOT the most important person there to its daily operations. Do not be a control freak. Do not be hands-on with every job function. Do not occupy every box in your organization chart. Do not let the business depend on you for everything. Provide the vision, leadership, business systems, and the passion, but not the blood, sweat and toil on a daily basis. Instead of working so much "in" the business, work "on" the business. Build systems and document the work to be done by others.
With the proper end game in mind, you will do the right daily actions to create a customer-serving, money-making asset that's separate from you. Think and act like a CEO, not a typical small business owner.
Growing a successful business is like loving and raising your child to eventually be independent and self-sufficient from you. Same thing with your business. Give it the proper foundation and wings to fly on its own...you will enjoy the business while you own it and you will be richly blessed when you sell it. Let your business grow up too.
Daniel M. Murphy
President, Founder & Business Coach
The Growth Coach
Business Coaching Franchise System
Certified Business Coaches throughout North America