Are you building a Legacy Business or a Profit Business? This is an important question every business owner needs to answer before they launch. But most don’t even know they should ask this question at all let alone when. And if a business owner does think about how they’ll eventually exit their business, they often don’t know how to take action on their vision.
Legacy vs Profit
Most people think they’re creating a Legacy Business, when they actually have a Profit Business. In a Profit Business, you (and your time) are the most valuable asset. You’ll keep expenses low, profits high and pay yourself regularly. You’ll make withdrawals of profit along the way that you’ll use to build your Freedom Generator outside your business.
Creating a Legacy Business takes a considerable amount of legwork and money up front. That’s because the goal for a Legacy Business is to be sold for a profit that fuels your Freedom Generator in a significant way. You can take out profit along the way, but generally you’re putting all your energy toward increasing the value of the business with an eye toward the eventual sale. You’re hiring the right skill set of highly qualified individuals and offloading time-consuming tasks that slow growth. Your business needs to run without you, because you won’t be involved forever.
So how do you know which camp you’re in?
Hint: By your ability to answer these five critical questions:
Question #1: “Who would buy your business?”
Would a major company in the industry you’re working in want to acquire your business down the road? Or, can you envision multiple types of companies that would see your business as an asset? Having a potential answer to this first question is important in determining so many things—not only the type of business you have but the direction you’re going.
Question #2: “Why would someone buy your business?”
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Makaylah Rogers is the co-founder of MindShift.money. She is a Thought Leader for her generation, teaching people how to rewrite their “money rules.” With an extensive background in wealth building and personal development, Makaylah’s path has taken her into executive roles in various fields including launching startups, real estate sales and motivational keynote speaking.