Buying a business offers you the potential to create, and control your future. You can make your own decisions, there’s no one to tell you what to do, and you get to reap the benefits. This is the joy of being your own boss.
I’m sure you’re aware however that unless you take charge, your business will. Too many people end up being in a self- made prison rather than reaping the freedom and rewards. And, while you may think that you’ve escaped a boss, there’s no tougher boss than a business that relentlessly demands your attention 24/7.
So how do you avoid ending up being ‘employed’ by your business?
You must be the number one priority of the business. From the in-depth research gathered when writing The Invisible Entrepreneur: How To Grow Your Business By Taking 3
Months Off!, I saw too many entrepreneurs being the last in line to reap any rewards from their business. If you are investing in a business, then you need to make sure that it’s a wise investment, and that it does give you a return on your investment.
As a business owner keep in perspective that having a business isn't an end in itself, but the means to an end. Over the past twenty-five years I have seen too many business owners forget that a business is a moneymaking machine.
Now before you jump to any conclusions, and think that I’m saying that money is everything, it’s not. I know that making a difference is
important. I also understand that you get to be creative, and you get to set the standards that align with your core values. However, there’s another benefit that you may not have thought about which is your business needs to give you sufficient funds to be able to invest in other income- generating vehicles.
For instance, imagine using your business to generate enough revenue, so that you can then invest in ‘bricks and mortar’ and build a property portfolio that will give you a passive, and ongoing income. Would you agree that this could provide you with real freedom, and the opportunity to choose what you do, or don’t do in your business?
Be clear about your short- term and long-term objectives
Buying a business can often be an emotional decision. It feels like it’s the right thing to do, and if you just get started, you’ll figure out the rest. However, this can be costly, and may not lead you to your destination.
So before you buy a business, it’s important to map out ‘why’ you are going into business, and what you really want to
get out of the business. You must think in terms of the short-term as well as the long term. It’s much easier to map out your game plan when you know what game you’re playing.
When reviewing the business’ financials, look at the previous turnover and historic costs,
but also look at the scalability, and whether this business could operate without you. If you can't see the potential for this to happen, you may well be staring at a ‘vampire business’ that’s going to bleed you dry—delivering minimum returns for maximum input in terms of your time, effort, and resources.
Begin with the end in mind
How might you set up your first business, if you knew that it
wasn’t going to be the only business you’ll ever have? In The Invisible Entrepreneur the focus is on you not being in your business, and having to run it day-to-day. It’s about you taking on the role as the investor of the business. And, if there’s one thing that I would encourage you to do is to begin thinking like the investor from day one.
It might sound like an impossible role to play in the beginning, however it will pay you dividends if you can master operating like this. It will give you enormous freedom to
direct two game plans simultaneously. Game Plan 1 is your business. Game Plan 2 is an investment portfolio, funded by your business. Another way of saying this is, don’t put all your eggs in one basket.
If you’re interested in creating a future that gives you the best of both worlds—your business and your investment portfolio, then please call me to discuss how this can be achieved.
William de Ora is the best selling author of three business books. The Invisible Entrepreneur: How To Grow Your Business By Taking 3 Months Off! The Invisible Partnership: How To Live, Love, And Work With Your Life Partner The Invisible Branson: The Definitive Guide To Becoming A Business Rock Star To contact William: Email: [email protected] Mobile: 0414 834 733 W: www.InvisiblePartnership.com