- unlimited income potential,
- able to fire themselves, and
- can sell the company, in part or in whole.
I’ve worked with hundreds of entrepreneurs, and known many hundreds more, that don’t even come close to maximizing these inherent qualities of business ownership.
You Have Unlimited Income Potential
Let’s start with #1: unlimited income potential. I think too many focus on the potential, but don’t really learn how to it into reality.
If you haven’t learned how to increase your revenue within weeks, if not days, then you don’t really know enough about your business or your market.
Sure, some markets have very long sales cycles, but you should know what action you could take today to ensure a sale by the end of that cycle. If you don’t know those steps, then your sales cycle is probably long because you haven’t figured out how to sell to that market.
Other entrepreneurs get sales quickly, but don’t know how to generate them on demand. Typically they say they get sales through word-of-mouth.
Make turning the potential your business has into on-demand reality.
For #2, rare is the entrepreneur who fires him or herself.
Just because you created the business doesn’t mean your the best person for every job within the company. It doesn’t mean you really know how to do any of the jobs in your company.
Many entrepreneurs have an “I’ll do it myself” attitude when they are a mediocre at the job. Maybe they really can do it better than the people they hire — that’s probably because they hire people who aren’t as good as themselves so they can feel important and needed.
To unlock the unlimited income potential, you must fire yourself from every job in your company and fill those roles with people far more ambitious, talented, and brilliant than yourself.
Make A Sellable Asset
Lastly for #3, the more jobs that you fire yourself from within your company, the greater the chance of selling your business. Also, there’s a greater chance you’ll get a good price for it, too.
This is also the final stage of unlocking all the value from the company. How cool is it to get future earnings from the company today? That’s what happens in a business sale.
Everyone talks about the equity of a company (i.e. the value that has built up), but buyers don’t buy a company for its past earnings. They buy for its future earnings.
You already got its past earnings and when you sell, you get some of its future earnings as a parting gift.
On a scale of 1 to 10, with 1 being abysmal and 10 being brilliant, how well are you taking advantage of each of these benefits of entrepreneurship?