Are You Really Building A Business?

Are You Really Building A Business?

Having worked with thousands of small business owners in recent years I have come to the conclusion that most are not actually building a business.

If they are not building a business then what are they doing?

The answer is simple … they have created a job for themselves and in the process they are a long way from building a business.

Let me explain …

First of all what is a business?

To me a business is a synergistic collection of systems that operate without the direct involvement of the owner to produce a proft for the owners.

Think about this .. a business is systems working together to produce a profit without your direct involvement. This is the true essence of a business and if you are building a business then this is where your focus should be.

So lets look at your business for a minute a compare it to our definition.

First of all … do you have systems in your business?

A system is a series of steps you take to perform a task to arrive at a desired outcome. The classic example of a business operating on systems is of course McDonalds. This is a multi-billion dollar business operated almost entirely by teenagers following a series of systems. You rarely see the McDonalds franchise owner flipping burgers right?

In the book the E-Myth author Michael Gerber gives us a well thought out approach to placing systems into every area of your business from customer service to how to make your widgets.

So what is the goal of systems?

The goal of putting systems into your business is so that you can hand the system to someone else to run thereby freeing up your time from having to perform that task.

If you are truly a business owner then you will have in place systems for every area of your business, or at least be working on them.

Some of the key system you need are:

* Marketing – you need a system that attracts a large number of highly qualified prospetcs to you who are largely pre-sold on wanting to do business with you.

* Sales – You need systems in place to convert leads into clients.

* Fulfilment – You need the right systems in place to then deliver your product or service to the customer or client.

* Customer Service – You need systems in place to manage customers and provide customer service to them.

Of course there are many other systems you need in your business but these are some of the key ones you will struggle with as you go about building your business.

Your role as a true business owner is not to be working IN any of these areas but to be working ON the systems that run these areas and then training the people to run those systems.

Second thing to consider is this … are you focused on cash flow or equity?

Most people who think they are in small business chase the dollar constantly. As a result they never build any true wealth in their business.

Think about it … if the success of your business relies on YOU then how much do you think the business is worth?

If you said zero you would be right. There is not much of a market for businesses that can only operate with the owner running at full pace. Such a business is worthless in the marketplace.

Of course cash flow is critical in any business and I am not saying you should not be concerned with keeping cash coming in the short term … but you have to balance this with developing assets in the business which contribute to the long term value of the business.

Remember Robert Kiyosaki of ‘Rich Dad, Poor Dad’ definition of an Asset is something that puts money in your pocket.

These are just a few ideas for your to focus on right now in making the mindshift from self employed job owner to an actual business owner.

How do you tell which you are?

Simple … just ask yourself the question … ‘If I were forced to have the next three months out of my business then would the business continue to exist?’

If the answer is no or not likely then it may be time to re-assess how you invest your time and energy in your business.

You may need to shift your focus to SYSTEMS & ASSETS to truly build a business that you and your family can profit from in the long term.

Of course the first systems you must put in place in your business is a MARKETING SYSTEM that operates on AUTOPILOT attracting qualified prospects to you and presells them on becoming a client. Having such a system in place will free you from the need to constantly be chasing business, and have it start to chase you for a change.

Finally a word of caution … beware the self acclaimed business gurus who primarily teach you activities for you to perform in the chase for new clients. Such thinking will keep you stuck permanently in a self employed job rather than enjoying the freedom of true business ownership. So look carefully at the methodology they are using to acquire you as a client and ask … do they really have a business or a job?

Shifting your thinking to business builder is easy to do. It starts with you blocking out time in your week each and every week to work ON your business rather than in it. Then start looking at what systems you need to have in place first and I suggest your highest priority is going to be your marketing systems.