The ultimate test of your business can be found in a simple question: would someone want to buy your company?
Whether you want to sell next year or a decade from now, you must be building an asset someone would buy – otherwise, you have a job, not a business.
Here are eight ways to ensure you are building a company, not just doing a job:
- Revenue Independence: In a true business, revenue continues to flow even when you’re not actively working. In contrast, a job requires your constant presence to generate income.
- Customer Dependence: If your business relies heavily on a single customer to the extent that their preferences dictate how you deliver your product or service, it’s more like a job. A valuable business, on the other hand, should have diversified revenue sources.
- Brand vs. Personal Reputation: In a business, the brand and reputation of the company take precedence over the founder’s personal reputation. A job, however, often revolves around your personal skills and image.
- Process vs. Individual Expertise: A business operates on well-defined processes that consistently produce results. In a job, results typically depend on your individual expertise and efforts.
- Vacation Flexibility: In a job, taking too much vacation can be a problem. In a business, the ability to take extended time off without affecting performance is a sign of a valuable enterprise.
- Working Smarter vs. Harder: In a job, higher earnings often come from working longer hours. In a business, efficiency and smart strategies lead to greater financial rewards.
- Problem Solving: A job requires you to solve problems directly. In a business, effective systems and a capable team handle problem-solving, allowing you to step back from day-to-day issues.
- Customer Interaction: If most of your customers know your personal phone number, it suggests you have a job rather than a business. A well-established business should have systems in place for customer interaction that don’t revolve around you personally.
If you’re unsure whether you’re running a business or just holding a job, GPS can help.
Whether you're planning to sell soon or in the future, our expert team can provide a clear view of how your business stacks up from a buyer’s perspective.
We’ll analyze your performance across the eight key drivers of company value and offer tailored advice on how to enhance your business’s worth and attractiveness.
Let us help you understand and improve your business’s value. Get in touch with GPS today to start the process.
