It’s cool to see a business running on its own, not needing the owner to be present. And it’s not a dream you can do that with almost any type of business. There are a few things you have to know about the business before you can let it survive on its own.
You have to know it like the back of your hand
There’s a big difference between learning and doing. In order to really understand the business, you have to work in it for a few years. You have to make sure the business makes sense. Let’s assume you’re starting a restaurant you need to know what your food cost is. How many people can be seated and any given time and what average person orders.
You do that to understand how much profit you can make. Then you have to understand what type of advertising works best for your business. How you can make sure you’re packed all day every day.
Having done that you have to understand all the things that can go wrong with your business. And have a backup plan for anything that might come up. Once you’ve done that you are ready for the second step.
Training someone to take your place
That person must not only be good at his or her job, they have to love the business as much as you do. They have to be willing to stick with it during the hard times and make no mistake hard times will come.
This person will also have to make a nice salary. He has to make enough money that competitors won’t steal him away from you with a bigger paycheck. As much as someone can like your business or even love managing other people a bigger paycheck might cause them to leave you.
Setup a limit
One of the reasons business owners lose everything is that they don’t know when to fold. If you start a business and it’s losing money you have to know when to close it. We’re all hoping never to get to this point, but you have to think about it especially if you want someone else to manage it.
You have to set a limit to how much this business can lose before you close it. You can still fix the problem if you see losses starting to pop up. But if it reaches your limit you have to let it die. Going down with the ship was a stupid decision when it was conceived and it’s a stupid decision now.
A business can be profitable only after you cover your basis. Too many business owners wing it and don’t really know if they are profitable. Do the math, make sure your business is a well-oiled machine. Only then can you be an absentee business owner.
I hope you found this post helpful, if so like it and share it with your friends. And while you’re at it, check out my ebook ‘level up your business’ a guide to starting your own business the right way.