do you have a good strategy or just a good story?
Post on 20-Jan-2017
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Do You Have a Good Strategy or a Just a Good Story?
Growing your business will always elicit big dreams and audacious goals. It should!
However, it’s important to keep in mind that you need a path to get there.
You need more than a happy
story.
You need a great strategy!
Good story: I’m going to build this company and sell it one day and that will be my retirement.
Detailed story, but still a story: My company will be
grossing $3 million per year and I’ll sell it
for that and then invest the money and get 10% interest per year and live off of
that.
Strategy: Realistically your company will be worth about 10-15% of gross
sales plus assets.
It is unlikely you will make 10% per year in
interest unless you are willing to try risky investments or know a lot about investing.
The reality is that you will probably make $500,000 on the sale of your company and earn
small interest each year.
See whether a CEO or a COO would be better to help you reach your goals.
Strategy means planning based on reality, not what you hope it to be.
If you want to retire with $3 million, then you need to build your company so that it is
worth $3 million once you are ready to retire.
Which means you shouldn’t be in landscaping, but in fertilization, weed
control, or pest control.
These yield a much higher value that is desirable by other companies who might
want to buy your company.
If you’re selling in 10-15 years, you’ll have to guess what the market might want.
You’ve got to be willing to change
your business model to ensure you are
providing something that other
companies want.
Also, if you want to earn 10% interest in the future, begin investing small now so
you learn how to invest intelligently.
Many business
owners are good at telling
themselves stories about
the future.
But to reach your goals, you must use strategy. Figure
out your vision and what your
goals are
and create a realistic strategy on how to get there!
Service Autopilot tracks your money so that you can base your goals on real income and
expenses.
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