"...unless you start your business with the intention of selling it, it will almost always turn out to be a disaster."
This is a quote from the preface of my latest book, which will be published in early December 2016, only a few short weeks from now.
The title of my book is Beyond The E-Myth--The Evolution of an Enterprise: From a Company of One to a Company of 1,000!.
It's a mouthful, I know.
If you read the book--and I certainly hope you will--you'll find out why.
One of its key premises is that, unless you have the mindset that your business itself is actually a product for sale, your attempts at growth and ultimate financial freedom will fall abysmally short.
The sad truth is that the vast majority of small businesses on the planet are a fool's errand because so very few of them are built based on the understanding that "Job #1 of a small company's owner is to prepare his or her company for sale!"
This means that the focus must be on equity rather than on just income.
Take McDonald's as a case in point: Grown from a tiny hamburger stand--a company of one, if you will--to a stunningly immense enterprise--a company of exponentially more than one thousand.
"There's no getting around it, the public company called McDonald's is a product for sale.
And that was the intent at the outset. There at the drawing board of the tiny McDonald's corporation... Way back in the '50s when they were lining up to buy the company called McDonald's after the 50-plus-year-old Ray Kroc crafted his very first store--his franchise prototype--the intent was to scale for sale.
And the franchisees bought it.
And they bought it for the very same reason everyone else was buying it."
And that is what I am most adamantly suggesting that every business owner should do: design, build, launch, and grow his or her business in such a way that it will attract multitudes of buyers, not only for its consumer-oriented product (the hamburger, the insurance policy, the kitchen remodel, the software program, or whatever your ostensible product may be), but multitudes of buyers for the product that is the business itself.
This, then, is what distinguishes an entrepreneur from someone who owns and operates a business: an entrepreneur is an inventor of a growing company--a product--with the intention of selling it to a buyer who falls in love with it.
And this buyer of your company doesn't fall in love with what your company does so much as with how well your company does it, as reflected, first, by its ability to attract and retain customers and, second, by its ability to repeatedly produce return on equity.
Working ON your business with this future-oriented mindset, and not just IN your business taking care of the concerns and fires of today, is the only way to make this happen.
Remember that your company, "no matter what it does, and how it does that, is nothing other than a product. A product you're preparing to sell."