Unfortunately, many business owners don’t take the time to reflect on the difference between these two choices. They may not even think the answer matters. They are so tied up in the day-to-day operation of their business and so hyper-focused on the bottom line that they’ll never reap the true benefits of ownership, and, worse, won’t see danger signs that are building around them.
I’ve always hated the cliche “Work on your business, not in your business”. Except in the most ideal situations, you’re going to be doing both. Hopefully, you’re heading toward “on” and away from “in”.
Here are eight ways to know if you are building a company, not just doing a job:
- A job requires that you show up at work to make money, whereas a company generates revenue whether you are there or not.
- If your company is so reliant on a single customer that they can dictate how you deliver your product or service, your company is more like a job than a valuable business.
- A job is a place where your personal reputation impacts your results, whereas a company is a place where the brand is more important than the personality of the founder(s).
- A job requires you to use your personal experience and expertise to get a result, whereas a company is a place where a process – not a person – consistently produces a desirable result.
- In a job, you get fired for taking too much vacation, whereas if you own a company, the more vacation you can take without impacting your company’s performance, the more valuable your business will be.
- In a job, the harder you work, the more money you earn. In a company, the smarter you work, the more money you earn.
- In a job, you solve the problems. If you own a company, your employees solve the problems.
- If the majority of your customers know your mobile phone number, it’s likely you have a job, not a company.
The ultimate test of your business can be found in one simple question: would someone want to buy your company? Whether you want to sell next year or a decade from now, you must be building a valuable asset someone would buy – otherwise, you have a job, not a business.
If you’d like to ensure that you’re building a valuable business, join me on May 28th, 2015, from 8:30-10:30am at Oceanside Country Club in Ormond Beach, FL for a free seminar titled “What’s Your Business Worth? 8 Key Drivers of Your Company’s Value”. Please use the link below to register.