What are You Really Building?
I trust you had an amazing Independence Day Weekend. During these unsettling times it is good to be reminded of the benefits we have in our country – especially as an entrepreneur!
As we continue on in our Powering Up Profitability Series be sure the check back in the previous blogs if you have missed them.
This week we ask the question: What are you really building?
There are two types of business, an asset and a cash machine.
A cash machine is a business that is typically a solopreneur. The revenue is dependent on you generating the cash. All systems are built to create the lifestyle you desire as you deliver your product or service. The exit strategy is generating enough cash to invest in ways that your long term legacy is created.
An asset is typically built with structures and systems and people so eventually it runs without the owner in the day to day. This business is typically sold as the exit strategy.
The magical question to ask yourself is “Why am I doing this now?”
If you know what you are building in the long run, you can then determine if what you are doing is the right thing.
For example if you are building an asset you want to always be looking for who can help you do what you are doing. If you are building a cash machine you want to make sure your actions are all revenue producing. Either way you want to make sure you are staying in your zone of genius, only dong the things that will keep you on track for the results you desire.
Focus is the key to success. We all get the same 24 hours in a day!
Action Step: Answer the question Are you building a cash machine or an asset?
If you have questions hit reply and ask, we are happy to help!
For a deeper dive into all areas of profitability download our 10 Tips for Increased Profitability.