Simon Sinek famously asks “What’s your big why?” So following on from that theme, what’s your big why for being in business?
While there are likely to be as many reasons as there are owners, surely one major one is to make money and achieve a level of personal wealth.
So following conventional wisdom, you focus on growth. Growth takes money. You plough all your cash back into the business. Cash flow is often tight.
You scramble for sales. It’s a roller coaster.
You end up getting paid last, if at all.
But many believe it’ll all be worth it – one day they’ll sell the business for big pay cheque.
The reality is that’s simply not true. There are very few “unicorns”. Statistically only 4% of businesses actually get sold profitably, providing a good return for all the risk and hard work.
So here’s my contrarian take on business.
Your business should be working for you rather than you working for it!
It should be a wealth generating asset which pays for your lifestyle along the way and allows you to slot away cash in external investments which compound.
Then if you can sell it down the track, it’s a bonus.
No matter what your end goal, one thing should be clear. Nothing happens until you acquire a steady stream of profitable clients.
Sales is your lifeblood!
You must have a solid marketing, prospecting and professional sales system which can predictably bring in profitable clients.
Being ad-hoc and winging it is a road to instability.
Long gone are the days when you could easily find a single buyer and get a quick decision. Let alone come in at the top and have the deal mandated.
Today’s buyers are sophisticated. Many will have thoroughly researched you BEFORE reaching out.
Add to the mix you need to deal with multiple levels in the organisation. From the “business” to “technical” and “users”.
Fail to touch each group and determine their agendas and you risk the deal.