There are only two things you can do with an existing business: keep it or sell it. Let me explain this very important concept. If I walked into your business today, check in hand, how much would it take for you to sell it to me? What’s the number that gets you to hand me the keys and ride into the sunset?
OK, keep that number in mind. Knowing what you know about your business, would you be willing to walk into your business and pay me the exact same price to buy your business back?
If you said yes, then your business is most likely running well and doesn’t need that much of your time and attention to make it work. Therefore you might as well keep it as your own personal cash machine. Unless of course you see forces on the horizon that could change things for the worse.
If you said no, then there is a good chance your business has problems or is consuming your life.
One of the major mistakes I’ve made that has cost me millions is not selling a business at its peak or not being able to sell it at all because the business was built around me and not around systems and staff.
Too many entrepreneurs work ten or twenty years of their lives and have no business to sell at the end of the day. What they actually do is provide themselves with jobs; they do not really build businesses.
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Your best strategy is to build your business in such a way that it runs without you because of the systems and people you have put in place. This provides you with a good living rather than sucking the living out of you.
Or you could build your business up to sell it for several times the income you currently generate as a nest egg. Then you can go do it again.
Anything else is just a job, no matter how well that job happens to pay. Plan your exit strategy early, and remember, the less your business is about personality and the more it’s about good business systems, the easier it will be to sell — or keep.
Either build your business to function without you as a cash vending machine or build it to sell for several times gross.
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