HAVE YOU ACHIEVED THE ELUSIVE 4th ROLE IN YOUR BUSINESS?

Hope of investor concept

Most business owners understand that as their business grows, their roles also progress from technician to manager to president…..but there’s a 4th role which very few ever achieve.

The majority of business owners get stuck in one of those three roles and don’t progress to the next level…this has serious implications for their business and their financial future.

I will outline the 4th role and discuss why it’s critical to achieve it, if you’re to sell your business and maximize your exit.

The 3 common roles are as follows:

1.Employee / Technician

This is the role that most 1-person service businesses focus exclusively on. It’s all tactical and focused on ‘getting the work done’.

The business owner is short-sighted and believes he’s self-reliant.

‘It‘ll be better if I just do it myself’ and ‘Why should I pay someone else to do it and it won’t be done as well’ are the common statements that the technician either articulates or is thinking.

2. Manager

The technician now progresses to ‘manager’ level and looks at the business as an entity in and of itself.

The business owner will have others do the work and will focus more on the business as a whole.

There’s focus on systems and structure.

Their ultimate goal isn’t just to get the current work finished, but to move the business forward into the future and see it grow into something great.

‘Who’s the best resource for this task or activity’ and ‘How can we improve performance’ are questions that are being asked and solutions sought.

3. President

The manager then progresses to ‘president’ level and takes an even broader view of the business in terms of time and the market.

The business owner is acutely aware of where the business sits in the competitive landscape and understands that the key to success is sustained growth.

The focus is on codifying intangibles like mission, values and culture and their energy and time is devoted to motivating and educating their team.

‘What are our critical success factors?’ and ‘How can I keep everyone in the business focused on our objectives?’ are the questions that are being addressed.

These 3 roles are commonly known but there’s a 4th role which most business owners don’t know exists…..and if they do know…..it’s rarely achieved.

4. Investor

The move from ‘president to ‘investor’ requires a significant shift in mindset but it must be made if you are to maximize your exit.

In this sublime stage, the business owner no longer has an emotional or ego based attachment to the business.

If you still find the business as part of you and vice versa, you’re still too attached.

The investor role exists outside the business.

‘What is the rate of return on money/time investment in this business?’ and ‘How does my investment [time or money] in this business compare to other businesses?’ are the critical questions to ask.

Most business owners have a significant proportion of their personal wealth and years that can never be replaced tied up in the business.

Yet most business owners do NOT BEHAVE as if their business was an investment.

They do not manage it and hold it accountable for value appreciation and return on investment. They do NOT manage by ‘key metrics’ at all.

Transitioning from thinking like an ‘owner-operator’ to an ‘investor’ is frankly, not easy, and will feel uncomfortable and odd but is necessary for you to maximize your exit.

To discover how you can go through that process and receive a 75% discount, visit www.maximizeyourexit.com/sell-smart-net-what-youre-worth-t

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