The value of your business is larger than some and certainly some businesses are larger than yours. There is one thing that all business owners have in common and that is they want their business to grow!
If you are a self-employed business owner, this blog post is dedicated to you! You wake up every day unemployed, and you don’t get paid till someone says “yes, I want your product!”
The entrepreneurial spirit and the hard work that every business owner invests into their business is to be honored. The many hours of sacrifice, blood, sweat and tears behind the scenes that every entrepreneur experiences is to be commended. All of this energy is expended without any guarantee of success.
The small business owner is the primary job creator in this great country of ours and any success they achieve is despite all of the obstacles in front of them . They overcome these adversities and not only improve their lives, but also those they employ that help them accomplish their mission of serving their clients. This is what makes America work, not the bureaucrats in Washington D.C. If you work for a small business owner, thank them! If you are a small business owner, you know what we are talking about first hand! You did build that!
There are three important areas within your business. The first, which gets the most focus, is the value of your business. This represents the dollar amount that your business is currently worth if you were to consider selling it.
The second type of money or areas within your business is your Lifestyle money which represents the dollars that you are spending to maintain your current standard of living. Lifestyle Money can be broken down into three smaller categories which are:
- Expenses and benefits you enjoy because you are the business owner. I.E. You conduct your annual board meeting in “Hawaii”
- Money you take from the business to save or invest outside your business
- Lastly your remaining lifestyle is that amount left over after taxes for consumption to support your lifestyle.
There are many factors that influence the growth of your business and it is these issues that tend to dominate your time and energy.
There are only two ways people other than you can make a substantial impact on your business. One would require an intimate knowledge of your business to find new markets or better opportunities for growth. This often requires increased risk for your and your company.
The second way would be for someone to help you become more efficient with what you are currently doing and reduce areas of risk and loss. Obviously if you knew where the losses were occurring you would already solved these issues.
How efficient is your business? You may be loosing money due to expense loss that you have no idea that is even taking place. Expense loss is not only the money you are forced to spend which is simply the cost of doing business, but also money you could be loosing unknowing and unnecessarily.
Unfortunately one can spend so much time on making the value of their company grow that they overlook the expenses lost along the way. If you loose a dollar you did not have to loose, you not only lost that dollar, but what that dollar could have earned you had you been able to keep it. I.E. A dollar in taxes that could have been avoided.
Your business will grow as a result of your shear hard work and willingness to overcome. As your business grows, so do the expenses to run the business. Your job is to make your business grow to its maximum potential. However, if you are not working with someone who can help you eliminate or mitigate your expense loss by helping you find capital you are losing unknowingly and unnecessarily ,those losses will grow right along with your business.
Many advisers have ideas of where you should invest the money your business is generating. When it comes right down to it, there really is no better place to invest your money than in your own company, simply because it is something you know and can control to some degree. The money your company generates is investment return. There is more power in minimizing the losses than every trying to pick the winners.
If what you thought to be true about your business turned out not to be, when would you want to know? There is a better way.