Posts Tagged ‘business owner’

How to Semi-Retire From Your Business- Part Two

Involve the Entire Team: It is important to involve the entire team in this implementation process. Having an implementation team consisting of a select few will only lead to confusion, frustration and discontent.

In order to have an effective and efficient implementation system, it is essential to have everybody on the team involved.

This will also be a major contributing factor for the business owner, in moving closer to the next goal – letting go of the business and making it work on its own, by handing the reins of the business to those who will be ultimately responsible for running it.

Give Them Responsibility: The business owner can’t expect team members to work hard without giving them true responsibility for their jobs. If the business owner gives accountability, he also has to give responsibility. In addition, there has to be a system in place for rewards based on results.

It may be a share of the profits, for instance. This can bring out the best in all the team members.

Delegate: Delegating work goes far beyond just handing over responsibilities and jobs to other people; it means handing out the functions completely. It has much to do with letting go, instead of wanting to do everything oneself.

This is where one can see the true test of a leader.

Hands Off: It can be very useful to a general manager to run the business so that the business owner can step back more easily.

This is one good way of handling this situation, and in this manner, the business owner can leave the business in the hands of the expert who has been hired.

Easing Out: There are a few tips, as discussed in my Instant Systems book that can help a business owner ease out of the business, including:

- Not interfering with the work being done by the team members. They were hired to do the job, so let them do it.

- Giving up a parking space or office. Not having a place in the business will help keep the business owner from showing up all the time.

- Staying away from regular meetings, and just getting a brief from the general manager on the phone or via e-mail.

- Keeping all lines of communication open and remaining accessible.

- Scheduling periodic meetings or visit at the office from time to time, or showing up for specific meetings as required.

Handling Semi Retirement: While everyone hopes to achieve this state, many are not able to handle it when they really retire or in this case, semi-retire.

This is because they have been busy doing things and have been part of something productive.

However, the proposition of not having to go to work and still be paid can also be irresistible. One can deal with the pitfalls by developing a social life that you do not have to trade for money anymore.

But this doesn’t mean that the business owner will go back and start working in his business all over again.

This will mean investing.

An owner will now be making money with money to create wealth. While becoming a different type of business person in this sense is more challenging, in the end, many former owners find it is much more profitable.

How to Semi-Retire From Your Business- Part One

When a person buys a business and becomes a business owner, more often than not, this translates into buying a job.

This is because a business owner is often involved in designing, planning and implementing systems to run a business.

It becomes very difficult for the business owner to get free from the business and hand over duties to others.

It takes a courageous business owner to make an enormous change in the way he or she approaches business in order to make the much-desired transition from having a job to becoming semi-retired.

This is because all change is difficult due to fear – mainly fear of the unknown.

There is also fear of change, as a move to semi-retirement means an owners needs to change the way the he or she works with the company and team-members, and also in the way he or she views money.

Instead of taking a wage from the business, an owner will now be making money by maximizing profit. This will completely change the mindset of the business owner.

As a result, the owner’s whole relationship with the business will undergo a change of mammoth proportions.

To ensure the entire process of change is handled carefully, here are some ways to ensure a smooth transition – making sure the business can operate successfully and profitably without the business owner:

Create the Right Environment: If the existing conditions are not conducive change, transition to any change will be difficult. The team members within the organization should be willing and ready to introduce new systems and should genuinely believe in the urgency and importance of any new system.

The environment should be oriented for change in another way as well. There should be a climate of trust within the business, because a change usually involves moving away from status quo and requires the team members to step outside their comfort zones.

Open Communication Channels: One way of creating the right environment for change is having open communication channels so that the business owner is able to communicate with team and vice-versa.

That’s why it is important for team to feel there is an “open door policy” as far as communication is concerned.

There is a need for effective communication within the business, which means that the messages being communicated are actually received, and understood in terms of content and intention. It also means that they are acted upon, if necessary.

This is because any communication must result in some type of action.

Provide Continuous Feedback: It is crucial to have strong leadership through this process of change.

The business owner needs to employ a leadership style that keeps the owner on the right path. The best way of doing this is by providing the team members with constant feedback. This can be done by tracking their progress with the system and keeping them in the loop on the developments taking place.

It helps to offer encouragement and support and encourage them to provide feedback.

Communication is a two-way street and it is the lifeblood of any business; make it a priority.

Business Ownership the Surest Way to Wealth- Part 1

WHEN YOU CONSIDER the various ways to build your wealth, the three avenues are shares, property and business? But of the three, which is the best way of building wealth? For me, the answer is obvious and standout winner — business!

No matter what you read in the newspapers, business is — and has always been — the best way to build wealth. The biggest money investors on the planet are the venture capitalists (VC’s). They are ‘big money’ people who have excellent reasons why they put those dollars into certain deals.

Generally, they look at both a company’s management and opportunity for success. And in doing so, they don’t buy shares or property.

They buy whole businesses. Yes, they may acquire those firms through the purchase of shares. And they might get some property in the package. But overall, the world’s top VCs look for whole businesses they can buy. Some VC’s look at emerging industries in markets with high growth potential, while others look at existing industries and companies that are underperforming in their market or category.

The aim?

Turning those companies around.

Once a VC owns a company, a few things can happen. VC investors could split a company’s divisions up and sell them off in parts. Or they could decide to put their own management in place to help leverage growth. Or they may use a single business to buy other similar kinds of businesses to leverage cashflow and profits through acquisitions.

Whatever they may do, the point is the smartest and best money people in the world buy businesses. And if that’s what they do to make money, maybe it’s something you should do, too.

Why?

Because ownership allows control of day-to-day operations, something you can’t do when you buy shares in Microsoft.

Bill Gates and Steve Ballmer have their own team to do that. You can’t do that with property either — primarily because longterm capital appreciation is based on a variety of factors — most of which are outside your control.

But you can control business operations that produce and generate cashflow, and return on investment from profits on cashflow is the key to creating long-term wealth in a business. For the majority of entrepreneurs, I recommend the VC strategy of buying an existing business and turning it around. There are a lot of reasons for this, but the ‘find, fund and fix’ model is probably the simplest way I know to get into business for yourself to take advantage of everything entrepreneurship has to offer.

Article reprinted courtesy of My Business Magazine

ActionCOACH: Helping Businesses All Over the World

ActionCOACH helps small business owners all over the world. Having 1,000 coaches in 32 countries allows us to have an international reach — no matter what country, business coaches can help a business owner with just about any issue they’re dealing with.

Watch the video above for some testimonials from some of our clients in the UK to see how exactly our business coaches help people, no matter the country!

Owning a Business in a Recession

Small business owners might be overlooked, but their businesses are still businesses.

Despite what you might have heard, it isn’t all doom and gloom in the business world today. In fact, more and more businesses are reaching out and acknowledging they need help to avoid closing their doors. This might seem like a bad thing to them…but it’s actually a good thing.

Business owners are acknowledging that they need to be held accountable, and so the only chance of failure is if the business owner doesn’t work to achieve their goals. If you have even mentioned once that you are losing money, or missing out on sales you owe it to yourself to invest some of your time learning how your business can reach its full potential.

Interested in learning more? Click here.

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