A common theme in that success story is business mindset. As a Business Owner we should take time to survey the broader business landscape and reflect, observe, and learn lessons from other businesses. We often see Large or Corporate Businesses and wonder about their success and what it took to get there.
This is not about thinking of building an empire, but about building something of value, something that is bigger than the sum of the group of individuals who started the business.
When they started out, a great deal of effort went into planning, budgeting, finding investors, and funding the business. This demonstrates a key intent in the business. This is not just about a business that will pay salaries, but something that will have leverage from the outset, something that will have a solid foundation for growth, and something that will create value for the investors. This is about building an asset that has the sustainable ability to generate and grow profits.
In the area of Small and Medium business in particular, many Business Owners take a different view at the outset. This view starts with starting a business where the key requirement is to be able to cover expenses and pay oneself a reasonable salary at the end of each month.
This mind-set of asset or salary is what trips up many Business Owners. It becomes too easy to get caught in the comfort zone of being satisfied that you are paying yourself a salary every month. You lose perspective and you lose sight of the end game.
Employees have little or no business risk, receive a salary every month, and they bank on some kind of company pension scheme to fund their retirement. As a Business Owner you are taking a far greater risk, you have no guarantee of a monthly salary, and in most instances no company pension scheme. You therefore have to focus on building a business that is an asset for the long term, and something that you can ultimately sell to fund your retirement. Because of the risk that you have taken, that ‘retirement package’ has to be far greater than the pension plan of an employee.
What is your mind-set? Are you running a business to pay yourself a salary, or are you building a valuable asset?
If it is your intention to build a valuable asset, then you need to think according, and act accordingly. Day in and day out, month in and month out – are you planning and putting things in place to build an asset?
Do you know how to change your mind-set, and what you need to do differently, in order to move from the employee / salary mind-set, to building a business that is an asset with real value?
Need to know more?