In an ideal world virtually everyone would build a business…at least if they’re interested in getting paid twice for their hard work. For a number of reasons building a business is a good decision. Three are the most obvious and popular. Of those, two, namely making more money and having to work less seem to get more press than the third. This post will focus on that third reason, which is perhaps the most important – future salability…how you can get paid twice for all of your nine to five effort.
Having spent time with a number of entrepreneurs and would be entrepreneurs, I have found the two reasons why most entertained the idea of starting a business were generally the prospects of higher income, greater flexibility/working less, or a combination of both. Though some mention the idea of future salability, the tone of quite a few of them suggests it is more of a fantasy than a realistic goal. It’s no secret that business owners tend to have above average incomes – according to salary.com the average salary of a small business owner is $233,600 – and they are perceived to have greater flexibility in their work load and schedule. (The perception is only true in some cases. I have found more than a few unfortunate business owners who are tied down by their enterprises to a greater extent than your average salaried employee; some by choice others by business demands. But for many, they do enjoy a level of flexibility beyond that of their employed friends.)
Besides the owner perhaps making more money and having the time to pursue endeavors that he or she enjoys, there exists a third important reason for building a small business: creating and enlarging a saleable asset.
For those who don’t happen to be in position where they carry stock options or some form of an equity stake in a business, their sole compensation for their work is their income. It may take a number of forms such as salaries, bonuses, or commissions, but whatever form it takes it is what it is. They may get a raise, but they won’t be paid twice. Their pay cannot be multiplied. But for those lucky individuals who own saleable businesses, they in fact get paid twice for their work, once at the present time and secondly when their business is sold. For each new customer they gain, they not only get to pocket the proceeds from the current sale, they now also have a larger customer base. For each sale they make, they not only reap a profit, they also increase the overall revenue and profits for their company. In the end, their work doesn’t just produce an income; it builds the valuation of their business. And who wouldn’t want that?
In keeping with the theme, I’d like to make mention about one other scenario relating to the subject. I don’t know the stats, but it occurs to me that many existing businesses are profitable for their owners but are not structured so as to be saleable such as one man operations, businesses heavily dependent on the skills or network of their owners and the like. I should think that most of these could benefit from being re structured and run with intent to become saleable, at least if the owners are interested in building an asset.
Question: What business opportunities would you be well suited for? What is your plan to pursue them?
www.leadingbythinking.com
Author Resource:
http://www.leadingbythinking.com Paul Hoyt is an emerging writer presenting a fresh perspective on topics relating to business and the logic of life. He is the founder and President of a successful luxury watch company and is a member of the Cerebrals Society for those with IQ's in the 99.7 percentile.
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