Step Three: Run Businesses on Auto-Pilot
At this point, a business owner has a few particularly enviable options available to them. One possibility is to close down the business for 10 hours each week, take time off, and settle for making the same amount of money per month that was generated before they boosted weekly profits by 25 percent.
Another alternative, however, is for the clever entrepreneur to leverage that newfound success for progressive changes and forward momentum. He or she will maintain the same hours of operation, capture the extra 25 percent in profits, and then wisely reinvest those profits in greater timesaving initiatives.
By working smarter – not harder – through organised systems, cutting edge technology, innovative advertising, and dynamic employee training, the entrepreneur can prepare to put the business into the hands of capable others – which is the next step toward personal freedom. If somebody else is running the store – without any loss of productivity – it is possible for the owner to literally play golf all day and sleep without phone call interruptions all night and still make the same amount of income.
This is the radical concept of working on one’s business without working in the business. The skilful and resourceful entrepreneur rises to a level of ownership that allows for continued improvements in profitability, but does not require that the owner assume day-to-day responsibilities and on-site oversight.
Legendary business leaders like Henry Ford made money by systemising production. Bill Gates become the richest man in America not by making computer software, but by inventing a system for selling software around the world without having to be physically involved in each of the transactions. The wealthy owners of NASCAR teams don’t drive the cars – they arrange a business model that perpetuates itself with the help of others, while they make leadership decisions from a distance. Great coaches don’t quarterback; they stand on the sidelines and make astute observations and effective changes in overall strategy.
Captains of 747 jetliners put the aircraft in motion and then switch to automatic pilot. This allows them to take a nap or do crossword puzzles while the plane safely flies all by itself. Superior business systems allow entrepreneurs to do the same thing with their companies.
Those who keep practicing and refining that approach while applying that kind of formula will soon retire from the business entirely. With a steady stream of monthly income to live off of, they are free to invest in new ventures, spend time on hobbies and vacations, and fulfil lifelong dreams.
This blog post is part of our ActionCOACH guide ‘Working Fewer Hours’ that can be downloaded here
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