If you own a business, when was the last time you stopped and asked yourself, “Why?” Why you’re in business. What your end goal is? How close to achieving you are?
Most business owners (myself included) get caught up in the day to day stuff. Getting clients, delivering, paying bills, fighting fires.
But when was the last time you stepped back – took a helicopter view of your business and reassessed where you’re at?
Ultimately, from a completely selfish point of view there’s only one reason for being in business. Which is to create personal wealth. Sure, you want provide great service, make a difference etc., but you can only do that if you make money first. So your goal should be to have your business pay for your assets. i.e. Generate an ROI which leads your being able to invest externally, compounding your returns.
Every business goes through stages. Which one are you at?
INSTABILITY: It’s a roller coaster ride. Income is inconsistent. You’re working for the business pouring in your blood, sweat and tears. You’re the last person to get paid.
STABILITY: Cash flow is stable. You’re investing money back into your business. There is some money for you. You work in the business day to day.
CONSOLIDATION: You’ve set up solid foundations for expansion. You have a good leadership team. Effective sales and delivery systems. You spend the majority of your time working on the business. Most importantly, you pay yourself first, building your asset base.
EXPANSION: Scaling – Expanding your market or entering new ones. However, remember not to get caught up in growth for growth’s sake. A solidly profitable business which generates cash is a goal unto itself.
ASSET: You’ve built up enough personal wealth to have financial choices. You may continue to run the business or sell. You’re now beyond your business.
If your business isn’t returning what you feel it should financially, I invite you to join the ranks of our clients who we’ve helped create assets via their businesses.
Together we’ll help you achieve clarity on your vision. What you want your business to achieve. Then a strategy and a plan for growth. We’ll determine the critical activities, resource constraints and how to maximise leverage while mitigating risk.
Our programs are bespoke. Our focus depends on which level you’re at and what you aspire to achieve. Contact me on 0414 913 334 or reply to this email and we’ll set up a no obligation, confidential chat to see if there’s a fit between us.