Ever notice on the back of a hotel door, there is a floor diagram with a red dot that signifies “you are here.” It’s there to show you your room in relation to the fire exits. In short, it’s your exit strategy and life-saver plan. As a business coach, that “red dot” got me thinking about the situation most small business owners find themselves in. They don’t really know where they are in relation to their own exit strategy… selling the business.
As such, let’s play the “red dot” game. Visualize a circle with a red dot in the middle. Most business owners are that red dot and the circle is their business. Sadly, most owners are at the very center of their business, no where near a profitable exit strategy (door.) As the owner (dot), they are at the center of every transaction, every decision, and every problem of that business. Everything depends on the owner. Unfortunately, since everything depends on the owner, the business is not worth much to a buyer. In that situation, there is no real, self-sustaining and self-sufficient business. The owner IS the business. As such, who in their right mind would ever want to buy such a company that is so dependent on one critical person? Who would want to buy your crazy job as a Chief Everything Officer? Very few would buy such a business. Or, if someone does buy it, odds are they will not pay much for it.
As a business owner, to achieve greater fulfillment and wealth, you must gradually move your dot away from the center of your business and closer to the eventual exit door … a profitable sale of your business. To achieve this, ultimately you do NOT want to be the most important person in the business. In fact, you want just the opposite … to be the least important person to the daily operations of your business. You want a business that can operate profitably and consistently without you. A business that works well whether you are there or not. Whether you take a nice vacation or not. Whether you are sick or not. You want to own the business and provide leadership (vision, direction & accountability) but again, be one of the least important people to the day-to-day, tactical, operational dealings and details of the business. Put simply, you want to provide more “brain equity”, less “sweat equity.”
The Growth Coach provides small business owners with the structure, discipline, and proven business coaching process to make this wealth-building transition happen … to move you (the dot) from being the Chief Everything Officer and owning a job to the Chief Executive Officer owning a real business.
The farther you get away from the center of the business and closer to the outer edge of the circle (if not completely outside of the circle), the greater the value of your business. If you move from the center, the business is less dependent on you and more dependent on the systems and procedures you put in place. Additionally, until you sell the business for a fortune, it will be so much more enjoyable to run when you are no longer at the center of everything. Start moving your dot away from the center and grow the value of your business!
In summary, unlike the back of a hotel door, most business owners do not know where they are in relation to a successful exit strategy … selling the business. They are working too much “in” the details of the business, too much in the center of the business, and not nearly enough working “on” the business. Business owners (red dots) do not know where they are or how to move efficiently and effectively toward the exit door (selling their business).
Business coaching will provide you with the exit strategy and life-saver plan. An objective business coach will help you move toward the outer edges of the business. With an effective business coaching process, a coach can help you to define where you are, where you want to go, and even help you map out a plan to get there … as well as provide on-going accountability so you make adjustments along the way and stay on track.
Watch this video on “Selling Your Business for a Premium”
Certified business coaches with The Growth Coach can help you achieve this life altering “red dot” transformation. Click here to find a business coach near you.