The Four Business Stages To FREEDOM
It’s very easy to start up a business, it’s a lot harder to obtain financial freedom by building it. The main issue is the knowledge gap for business owners moving from stage to stage. The main gap going from struggle to business class.
- Start up
- Business Class
Beginning with the end in mind, I will go through them in reverse order. So, with the aim of living as you wish; ‘Investor/Freedom’ is about setting up your business to create an investment income either through it running itself or selling it and investing the capital to live off the interest. If you wish, the investment capital can enable you to experiment with new business ventures, property portfolios, the list is endless.
‘Business Class’ is where we want to take you first. This is when the business runs itself, with little involvement from you. It’s highly profitable and has a high value, the type of business anyone would buy because it is a money making machine.
‘Struggle’ includes 90% of all businesses in any country. 99% of businesses in any country employ less than 20 people. 95% of them employ less than 10 people and 95% of those employ less than five. So you could say all business is small business. We estimate only about 10% of this number are run by people who want to get on and grow their business. The remainder are happy and content with their lot.
It you think about it, most businesses are run by ex-employees, people who have had a trade or occupation and wake up one day and decide to go into business.
Why did you go into business?
Many people are content because they have little hassle and the business pays for what they want. They could be a shop owner; an accountant or a lawyer, operating a limited company, in a partnership, business proprietor or sole trader. Whichever they are in, I would say that 90% of business owners do not know, or have never explored, what they really want out of their business. This is why they struggle. Another reason they struggle is the lack of effective business training.
Those who successfully make it through their first year often learn by simply doing it. This works fine and there are many great businesses out there that have been built on this principle. But there is an easier way, and that’s based on knowledge and using leverage, the leverage of using somebody else’s experience, just as you are by reading this book.
‘Start up’ is self explanatory and as a phase of business can last from a few months to more than a year, depending upon the growth rate. A major challenge for many successful start-up’s is controlling the growth and avoiding rapid burn out .
There are two core differences between Struggle and Business Class: Owners of Business Class companies know what they want, they set goals and objectives, and then they build teams to deliver them. Owners of businesses in the Struggle phase do not do this.
Business Class people and organisations also focus on the customer experience. They design products and services that add value to their customer’s lives, and they deliver on the promises they make to them.
Struggle phase business owners focus on what they want, not what is best for their clients. For them it’s all about “How I want to run my business; I know what the customer wants” etc.