Discover How to spend less time in your business and LET GO!

Discover How to spend less time in your business and LET GO!

Discover How to spend less time in your business and LET GO!

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Discover How to spend less time in your business and LET GO, all while building an asset you can sell down the road and enjoy the same life style when you transition into your new life after business.

Many people make the mistake of thinking they need to put in 80 hours a week year after year if they’re going to build a business that someone will want to buy one day.

The truth is, potential buyers are looking for businesses that can thrive without their owners. After all, once they buy your business, you’ll no longer be available to put in those 80-hour workweeks, right?

I have worked with many business owners to help them put in place  unwavering, unusual, efficient strategies to quickly reduce the amount of time they were spending in “work” rather than with the most important people in their lives, their families.

Most of the time business owners do not realise that they can increase their wealth, spend more time with people they really care about and enjoy new hobbies by putting to practice the concept of true leverage in every aspect of their business.

All you have to do is to follow the I SHALL LET GO process.

Invest in rental properties and other companies

Create a passive income that will help you to, not only secure your current income, but give you a steady and stable revenue when you decide to exit your business. Investing in rental properties and businesses develop multiple streams of income that continue providing cash inflow long after working on the initial transaction. The secret is to find cash flow generating assets that you can acquire, like a small apartment, then when the transaction is completed, find a tenant, sit back and enjoy the cash flow without having to invest any more time into it.

Synchronise enjoyable activities and work

You should organise regular activities like golf outings, mini boat cruises or anything you really enjoy doing that may attract local professionals away from the office to meet new and interesting people in a relax atmosphere. It will help you to meet potential prospects for your business, build your public image so that more people become aware of your offering and values, build relationships that will last long after you exit your business.

Host scalable Events

Organise onetime events that can be replicated to leverage income. When you spend time developing the concept and content of a one-time project you should try to find ways to generate income from this one-time event several time. For example, let’s say you develop a webinar on a specific subject that generates fees. The time you spend developing this webinar will be the same whether 20 people or 200 people attend. Oversell the webinar, statistics prove that only 50% of registered people will attend, so you will have twice the revenue per head for a given event. This webinar can now be sold again and again with very little time and effort to tweak the content, increasing your margin exponentially so a potential buyer for your business will be ready to pay more for your company.

Automate your Business

I know you will tell me, as so many business owners, I helped, “These are great ideas, but my business is unique and can’t be automated.” My advice: “Think outside the box.” Regardless of what business you’re in, if you need long hours, working in your business, instead of doing more enjoyable things in your life, then your business needs a radical revamp. You and your team should tear your business apart, selling or discarding the less profitable profit centres, identifying your cash cow products, upgrading the products with high potential growth and margins, and then finding ways to automate the processes to produce and sell those income generating golden geese. Business that are fully independent from their owners and key employees, relying mainly on systems and processes are less risky and attract higher prices

Leverage time versus income

Remove your daily inflated activities to boost your efficiency. If you are not under pressure due to tight deadlines it will take you for ever to accomplish certain tasks. The main reason is that we, as human being, have a tendency to be lazy and we let our mind wandering, if we are not under pressure, losing our focus. You should take the time to identify activities that take 20% of your time and are directly related to generating 80% of your income. This will help you to identify where you should be spending your time and freeing up more time for enjoyable activities without reducing your income.

License your ideas and products

Review your products, ideas or inventions patented or not, any services you provide that you’ve successfully repackaged as an eBook, online course, etc. and consider licensing them to value added resellers or distributors in exchange for royalty payments.  This will allow you to build a recurrent revenue, one of the biggest factors in determining the value of your company. Recurrent revenues are favoured by potential buyers as they can predict your future sales profits with accuracy. If you have to find new sources of revenue every month, a potential buyer will discount the value of your company at a higher rate, due to the risk it represents, compare to a company that is able to demonstrate that a big portion of its revenue is regular and recurrent.

Launch a Network Marketing strategy

A well-defined Network Marketing strategy can bring phenomenal growth and profitability. The reason for its bad reputation is that people embarking into this model have the “get rich quick” mentality and are not willing to put in hard work or they don’t have a sound strategy to follow in order to see results. Blogging can be extremely beneficial to any Network Marketing business. Lead Generation techniques on Internet can also be very useful.

Do your due diligence: find a great company, with products or services similar to yours with a favourable compensation model, adapt the model to your business needs and your revenue will grow exponentially in the next 6 months.

Employ a CEO

In order to plan for the continuity of your business, irrespective of the anticipated timing of change of leadership, you should formally start to think about what would happen if you were not able to run the business for an unexpected reason, like illness for example.

Having a capable professional that can run your business on a day to day basis is critical for the survival of the business. The earliest you start the selection process the most successful the leadership transition will be.

In your evaluation you should consider a key employee, a family member, or somebody you know outside of your business (working for a competitor for example) that may be up to the job. When you decide to retire, your family may still own the business, you can be a non-executive board member, or you can decide to sell the business to that person. Initially it might slightly reduce your profit margin, but the time freed up is more valuable since you can then use it to find other investment opportunities to boost your pension fund.

Thoughtfully repackage your products and services

You should look for additional income opportunities by simply repackaging products you already have. For instance, if you are in the DIY business selling a book entitled, “the 20 DIY secret tips” then you could repackage it as:

  • an e-book that you could sell on your web site and Amazon,
  • a series of paying webinars that will  teach your customers  one new tip per week for 20 weeks,
  • 20 other e-books (one per tip with a much lower price tag),
  • a DVD product,
  • an audio CD product…

Grow your Business

Small businesses normally choose a solution that only addresses their immediate needs. Growth will bring more complexity in your business so you should put in place systems that may be slightly ahead of your current requirements, but provides the capacity for future growth. Look for products that are complimentary to yours that your existing customers and prospective clients will benefit from. You could become a reseller, buying at a wholesale price and selling for retail, to create additional margins.

Operate a new model

You should investigate your corporate structure and governance mechanisms to make sure that they are optimally positioned for the intended business exit. For instance the partners in a Law firm may consider creating a limited company to optimise the tax obligations at both the corporate and the individual levels.

It is very important to review the make-up of the board and any consultancy board as it may also have an impact on the value perceived by a buyer.

Your business may benefit from a merger with another business prior to its sale. It may improve its scalability, enhance its product portfolio, help penetrating new markets and strengthen the management team

You should also explore how to spin-off one or more non-synergistic or non-performing business units to increase your margins.

Are you curious about how valuable your company is and what you would need to tweak to sell it when you’re ready? Then it’s time to get your Sellability Score via the questionnaire on the link below. It is free, takes about thirteen minutes and your responses are kept confidential. Complete The sellability Score Test Now!  Just click on this link:

http://exit-planning.co.uk/owners/sellability-score/

If you would want to know more on how to transition out of your business and would want to explore what you should do please do not hesitate to call Bob Jones on 01291 430 124.

 

 

About the author:

Bob has spent many years working in commercial law, managing the claims and legal teams.

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