Are you a business owner? If so what business model are you using? Is it a practice, business or hybrid?
Here’s why knowing your model is truly important.
It all comes down to how you want to spend your time and what your ultimate outcome is. (Watch the video or read the transcript below)
Transcript
Are you a business owner? If so what business model are you using? Is it a practice, business or hybrid?
My name’s Rashid Kotwal.
Here’s why knowing your model is truly important.
It all comes down to how you want to spend your time and what your ultimate outcome is.
If you love what you do and want to be intimately involved in delivery as the expert while being your own boss, run a practice.
If you want to create an enterprise which effectively runs without you, giving you leverage and time freedom. Ultimately something you could sell, run a business. Each has its own set of rules and challenges.
Today I’ll just cover why it could make lots of sense to run a practice.
A practice by definition has an expert at its head. While you may have support staff, your clients come because of you.
Doctors, lawyers, accountants and myriad professional consultants run practices. If they can’t deliver though, the business folds.
So if you are an expert in something, starting a practice is a simple (but not necessarily easy) way to get into business.
You have low start-up costs. You can run by yourself or with a small support team. You have low overheads with high profit margins. You can fund growth through your own cash-flow.
And you’re agile meaning you can rapidly respond to your market.
But there are downsides.
There’s no intrinsic value outside you. Therefore there’s nothing to sell should you wish to quit or can’t work.
You’re responsible for bringing in the business. You have to constantly market, sell and deliver.
And you are exchanging time for money. Having said that, running a practice can be very lucrative. If you have the discipline to invest your cash, you can build up a sizeable nest egg over the years.
Which brings me back to choice. I strongly suggest you decide which game you want to play. Practice or business. Because they have different rules and ultimate outcomes.
Be aware that running a practice is far more than just delivery. It take a particular mindset, ability to strategize, market and sell your services.
Which is where most practice owners come unstuck.
You see, it’s not enough to be an expert in your field. You have to be known as being an expert.
Which means you have to have an effective mechanism which positions you as the go-to specialist and authority that people in your market gravitate to.
And you have to get commercially smart so you get paid well.
Over 2 decades we’ve helped consultants involved in construction, health care, manufacturing, property investment, financial planning, OH&S and accounting to name a few grow their income.
So if you’re a practice leader who wants to move up the income ladder, earn significantly more per engagement while working the hours you want, reach out to me. I know we’ll be able to help you.
Details are at revealedresources.com.
Till next time, this is Rashid Kotwal.
