Do You Own A Business Or A Job?

An Important QuestionIf you run your own business you may think that this is a silly question but bare with me because it’s, actually, a really important one – for several reasons.

The best definition I’ve ever come across as to what a business is, or should be, came from a friend at Action Coach.  They define a business as;

‘A commercial, profitable enterprise that works without you’

and, if your business works without you, then you really do own one.

Another question that will help you understand what I’m talking about is this;

How long could you be away from your business before you stop earning money?

A Holiday Snap of a Tropical ParadiseMany business owners don’t make any money, at all, when they’re away from their business.  When they go on holiday they stop earning money at the end of their last day of work before leaving.  Some owners can be away for a week or two before their income stops coming in and others may be away for a month or so.  But only a minority of business owners could be away for as long as they wanted to.  And they can only do that because their businesses truly do work without them.

Here’s one final question for you;

How long would you have to be away from your business before you no longer have a business, at all?

So, what does all this mean for you, as a business owner?

Well, one of the reasons you may have got into business was to build up your company so that, one day, you could sell it.  Whether or not your business works without you has a significant impact on it’s value.  If your business doesn’t work without you then anyone that buys your business would have to work in the business, as you do, and this is reflected in the way the business is valued.  As a rough guide, this kind of business would be valued at around 2 to 3 times the annual profit.

On the other hand, a business that does work without the owner having to be there is typically valued at 10 to 15 times the annual profit, which, as you can see is a significant difference.

Of course, one of the other major benefits of having a business that works without you is that it frees up your time whilst still supplying you with an income.  And that’s priceless!

Hopefully, you can now see the difference between owning a business and owning a job, so, let me ask you; What do you own?

If you do own a business as per the Action Coach definition, that’s terrific but, if you own a job, what do you want to do about it?

The E Myth Book CoverYou may be happy to leave things just the way they are but there are a couple of other options for you.  Firstly, you could get hold of a copy of Michael Gerber’s excellent book, ‘The E Myth’.  This book is all about what you need to do to make your business work without you.  If you’re in business and you only ever read one business book, this is the one you should read.  Full Stop!

The second option?  If you’re serious about making your business work without you then get yourself a Business Coach!  My friend, Roger Lamb, at Action Coach would be delighted to talk to you about what he, and Action Coach, have to offer.  If nothing else, you really should take advantage of one of their FREE Business Seminars.  You’ll get to take away some excellent ideas and strategies that you can put to work in your business immediately and you’ll learn all about the system that Action Coach have developed that, when followed, will ensure that your business works without you.

If you’d like an informal chat with Roger, just send a message through the ‘Contact Me’ page and include your own contact details.

Please share this with your friends and colleagues if you’ve found it, at all, interesting.  And I’d also love to hear your thoughts, so, do feel free to leave a comment, below.

Have a great day,

Steve Bimpson

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