Today we’re going to be talking about the difference between success in sustainable in a sustainable business, and when I say sustainable business, what I mean is a personally and economically sustainable business, so a successful business is one where you’re making a reasonable amount of money and you’re reasonably happy with what you’re doing, but you may not be in love with what you’re doing. You’ll only like what you’re doing, so take that successful business, make it personally and economically sustainable. There are five pieces that you need to be paying attention to, and in my experience, most business owners are deficient in at least one of these areas, if not two, three, or even four the areas. So let’s go through what they are. S
So we always start with values.
Because as you’ll see, as we go further and further into what’s the sustainable business, it always keeps coming back to values and more importantly keeps coming back to what are the clarifying statements around the values that you have.
Those become tools and be done. Lots of videos on what the tools are and how they and how you go about using that. The second thing is, and this is the most important thing if you want to sell your business to an outsider at some point in your life, and that’s becoming operationally irrelevant. Now, when I say operationally irrelevant, lots and lots of folks have a hard time figuring out what do I mean by that Well, operationally, relevance is really pretty simple.
All it means is that you are not involved in the day to day operations of your business at all
You don’t do anything tactically in your business. You don’t sell to customers you know serve as customers. You don’t deliver products that your customers want. Now, if you’re in the business less than 25 people, I’m going to tell you right now is really hard to ever become operationally involved in your business.
You need to have enough people to actually deliver the service that gets you out of the way. Unless the business runs. Now, one of the things they’re going to keep your business from growing past 25 people is you don’t make yourself operationally irrelevant and you become the bottleneck in your business. The third thing in a sustainable business is having a recurring revenue stream and that means having regular revenue coming in in a predictable manner. Now that recurring revenue that doesn’t exist in all businesses in a business like a construction company or if you have a life insurance agency or a retail store, it’s really not recurring revenue. Somebody comes in and buys something. Somebody has to build a house or build a building for them. Well, you’re not going to build another building for the next month, the next year it’s going to be awhile. However, if you have a sales system in place that predictably creates sales conversations, that’s almost as good as having your recurring revenue, which leads us into our fourth area.
Sustainability, which is systems. Now, systems are the underlying key to excellence in all businesses. Your employees want systems because they want to know what they have to do to create an excellence in the work they do. You know, I’ve never met an employee that wants to do a bad job. They tend to get into that level after they’ve been in your company for awhile because you haven’t provided them with systems that allow them to be excellent at what they do, and if you have a system, sometimes you let those systems slide which causes a lot of frustration for your employees. Now, what are your customers want They want a system so they know what to expect from your company. They know that they’re going to get the same thing every time they come in and they buy something from you, so that’s where systems are important, and then finally, which is the fifth area, sustainability.
It’s not an input, but it’s actually an output is a result of something that happens and that’s profit. If you have great values in using well, you become operationally irrelevant. Your Business. You become good at delegating. You have a recurring revenue stream and you have great systems in your business. Profit is what the result is, and there are four areas of the property that you really need to pay attention to. That is, you have enough money for lifestyle. Do you have enough money that you’re putting away in an emergency fund for when you have a downfall and your business or you need to change your business and your cash flow that’s coming in doesn’t support you Do you have enough profit in your business that provides for marketing and for sales and for growth The truth is no bank is going to fund a 100 percent of the growth for your business, and then finally,
do you have enough profit that you can get excess cash that’s going to allow you to put together enough money to fund your retirement plan
Because the truth is most private businesses, you’re not going to get the financial independence with your business by yourself. You need other things along the way. So those are the five areas of sustainability. Here’s what I would like you to do. I’d like you to leave a comment below. Let me know what you think about this, and we have a, an ebook which is what we call the objective review, which talks about how we help people figure out what they want to do with their business and it’s something that you might be interested in taking a look at. There’ll be a call to action like you have to do is click on that. Give us your email address and we’ll have an anonymous way to you. Oh, and my name is Josh Patrick. I’m the founding principal here at the sustainable business. I really appreciate you stopping by. I hope to see you back here really soon.
My main focus in life is helping private business owners create a sustainable business that will last past them. I help create great outcomes using life experiences I’ve had during my almost forty years of running and being around my favorite people, private business owners. I’m a student, an entrepreneur and a curious observer of life. Read More