I recently returned from vacation with my wife and two daughters where we celebrated our 25th wedding anniversary. It was a fantastic time — and got me thinking about entrepreneurship and the distinction between building a true business versus creating a job.
Business owners who want to achieve the former need to assemble the right team so that the show always goes on. That way day-to-day tasks are handled, but you also have the ability to think about the big picture — and to start working on your business rather than in your business.
The key component is to make sure you have the right team around you who can:
Moreover, in the event that you ultimately sell your business, it will be more attractive if the maintenance of the business does not rely on you. Your company is more valuable if the policies and procedures keep the business going, as opposed to relying on the person who is sitting in the CEO chair. If the CEO is less valuable on a day-to-day basis, the company will be valued higher when it’s time to sell it.
Like technology and office space, it is critical to invest in the right people. When the resources and expectations are clearly set, the business will run — and you can take a vacation too! Not only was I able to relax on my recent vacation, but I did some long-term strategic planning for specific clients as well as my own business — a sometimes-challenging task in the midst of day-to-day duties.
Take-away: There are many benefits to making sure that you are not bigger than your business. Surround yourself with the right Processes, Policies, Procedures, and People (that’s 4 P’s!) to ensure that your business will go on, even if you go out.
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Co-founders & Managing Partners