For the last 35 years, JKL Associates has been helping business people move through the various stages of business acquisition, operations, and perpetuation. We have regularly referenced that many initial business buyers or startups acquire or purchase themselves a job. Over time and with development, they move into the role of actual business owners. No longer are they chasing dollars each and every day to pay themselves a wage. They have put some process and structure into the operation, and it not only begins to operate like a business, but the owner can now step out of working in the business to working on the business. This is a monumental step forward not only for the business but for the owner as well.
This often quiet movement, with all the various challenges of the business swirling around them coming to a logical order and the team applying themselves to resolve them, is a wonderful experience. It is at this very moment that the business owner moves from managing to leading the team.
Over the years, this transition point has taken various lengths of time to achieve. Many factors influence the timing of such a next-level success effort. At the beginning of the business, the owner is fully invested in the operations of the business—not only financially but mentally, emotionally, and likely in every other way they can put themselves into the future success of the business. This can continue for a number of business cycles – sometimes for years. Over time, they gradually come to the point where they concede to the process and think they have made it. They are a business owner, and this is what it is to own a business. They become so set in their ways that any change to that system, which they believe is doing them well, would be out of the question to attempt.
When we look deeper into this dynamic of business ownership, we find that the expectations the owners set for themselves are actually quite low. By setting the bar so low, it reduces the failure rate in their own eyes. Unfortunately, it also reduces the growth and potential of the business. We like to refer to this growth process when moving from owning a job to owning a business as the middle ground. It is the launch pad for the owner of the business to grow from a management perspective and lead the organization to its next level of growth. When this happens, the owner now moves from business owner to asset owner. The business now becomes a part of their large financial portfolio and not just the transfer of time for money. That was their initial role when they first entered the business, whether as an employee or having purchased the business from a third party.
This week’s question is: Do you, as a business person, want to continue transferring time for money or build yourself into a business owner and eventually an asset owner?
At JKL Associates, we have been navigating this leadership growth plan for many businesses and industry leaders. It needs to be a growth expectation and not just a nice thing to happen if and when it might happen. If it is not a defined end game objective, then there is no real focus on it. All the daily distractions you like to manage will keep getting in the way until you decide what and how you want to become. Interested in growing into the leader you have the potential to become? Give a Promise Guide a call for a no obligation conversation at MI (313) 527-7945 or FL (407) 984-7246.
Journey On!
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Celebrating 30 years of Delivering on “Promises”
