As a business owner, it’s easy to focus on growing profits or hitting sales targets, but have you ever thought about building a business that runs without you? A business that doesn’t rely on its owner is the most valuable asset you can have. It gives you the freedom to control your time, choose what projects to work on, and take time off without worrying about the business.
When you’re ready to step away, a business that can run on its own will be worth much more than one that depends on you. Here are five steps to make sure your business can thrive without you.
Jack Stack, the author of The Great Game of Business, suggests sharing the company’s financial results with your employees and giving them a chance to earn more when the business does well. When employees feel like they are part of the company’s success, they’ll act like owners and make smart decisions, even when you’re not around.
If you’re not ready to share financial details with your team, try this simple trick: When employees ask you questions, respond by saying, “If you owned the business, what would you do?” This forces them to think about the problem from your perspective. Over time, they’ll start solving problems on their own, making your life easier.
Some products or services may require your personal involvement. To change that, make a list of everything your business offers and rate how easy it is to teach someone else to handle each task (on a scale from 0 to 10). Start by stopping the work that’s hardest to delegate and repeat this process regularly. This will free you from tasks that require your attention.
If you’re your company’s top salesperson, it’s time to step back. One way to do this is to build a recurring revenue model. For example, offer customers a subscription or service contract that meets their ongoing needs automatically. This way, money comes in regularly without you needing to constantly make sales.
To make sure your business runs smoothly without you, write down the steps for all the important tasks. This could be an employee handbook or a set of instructions (called Standard Operating Procedures, or SOPs). When your team has a guide, they can follow the steps even if you’re not there. If someone leaves, it’s easier to train a replacement with everything already written down.
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