In this video, I look at the hidden goal of smart business owners. One of the primary purposes of a business is to give you the lifestyle that you want. And one dimension of that lifestyle is that you have time and money freedom. Meaning that you’re free to use your time in the way that you wish and that you have money available to do the things that you care to do.
The best way to do that is to prepare your business as if you want it to put it up for sale because the things that it takes to optimize your business for sale are the very things that will give you time and money freedom.
And what does that mean? Well, it means that if every one of your customers wants to speak to you when they call your company, then that’s not likely going to be a business that is optimized, as you need to be there in order to serve those customers. If you want to get away from that, then your company has to be more important to your customers than you, the individual owner. If you couldn’t take a month’s holiday without coming back to a disaster, then your business isn’t optimized from the point of view of a buyer. Because that demonstrates that you need to be in the business for the business to flourish.
And why would someone want to buy that business? You’re not going to get a lot of money for a business where all you have to offer is positive cash flow in exchange for a full-time job running the business because it’s essentially just a job for them to buy. But you are going to get a lot more money for a business that has generated a lot of free cash flow with little to no involvement required by the business owner.
Why would you put off optimizing your business until you’re ready for sale if you can enjoy the benefits of having that optimized business for the entire time that you own it?
