Did you buy a business… or a job?

If your business relies solely on you to get the work done, it can be argued you don’t have a business: you’re self-employed. While that sounds harsh, it simply boils down to whether the business can function without you.

And some business owners with employees may as well be self-employed – they’re trapped on the tools because the business can’t operate without them. While it’s challenging for owners to let go, that’s precisely what most of us need to do. You can do the work faster and better than anyone else, but it’s a fool’s gold.

Most owners go into business for more money and more lifestyle freedom. If you want to get the full business rewards you deserve, you need to reduce your businesses’ reliance on you. There are two main considerations here:

1. If your business relies on you to get the work done, it’s a double- whammy: you can’t leverage other people’s time to generate more income, and you can’t go on holiday because the revenue stops when you’re not there.

2. You should take a long-term view and look at your business as an asset you can one day sell. Any business that relies on the owner is less attractive to some potential buyers, meaning you’ll get less for it.

I argue that a truly successful business is one that’s highly sellable (meaning it’s attractive to potential buyers), for two reasons:

1. Its fundamentals are sound – solid cash flow and profitability, loyal customer base, and great people following clearly defined processes. (Ironically these fundamentals also make it a business you’ll want to hang onto for a long time to come. But at least you have a choice.)

2. It doesn’t rely on the current (or future) owner, meaning a new owner could step in and achieve the same results (or better); this also means the current owner (ie you) is not trapped in it, but is free to operate in your genius (or go on holidays).

This strong correlation between an awesome business to own and one that’s highly attractive to others is what it means to Have Your Cake And Sell It Too. [Also the title of my book.]

But it’s easier than you think to change this, and start building a self-sufficient business; a business that doesn’t rely on you.

3 steps to a self-sufficient business

1. ‘Sell’ mindset
A ‘sell mindset’ is not about selling your business, but about preparing to one day sell it for top dollar. By definition you’ll build an awesome business that you won’t want to sell. 

2. Delegate
It’s too easy for owners to get sucked into fixing everything – but while it may be easier in the short term to just do it yourself, it won’t reduce your business’ reliance on you. Delegation is an art. Communication before, during and after the job is key. Have team members shadow you as you do tasks eligible for delegation so they learn from the best.

3. Training & processes
Ongoing on-the-job training will help your people to step up.
Clearly state what is expected of them, and what success (or otherwise) in their role looks like. Break down and clearly define the key repeated activities within your business, and give ongoing feedback on their performances.

Jason Cunningham is a business growth expert, author, keynote speaker and industry commentator, and owns his own successful financial practice.
Get jason’s  book at www.jasoncunningham.com.au/book