Creating a successful business is a challenge; creating one that gives you freedom as an owner is an even more daunting task.
Many entrepreneurs devote all of their energy and resources into their businesses, which minimizes (and eliminates) any spare time and leisure they once had. Though many small business owners understand and embrace the sacrifices required to grow their companies, they risk slipping into the mindset of being a producer for their businesses, rather than a builders of them. This creates businesses that are owner-reliant; limiting entrepreneurs from enjoying the profits and accomplishments from a flourishing venture.
Understanding the difference between these two mindsets (and actively switching to a “builder’s” perspective) will enable you to build what I call a “level three business” and enjoy a lifestyle that gives you more freedom as a business owner.
Are You a Business Producer or Builder?
To make the critical switch, it is essential to learn what distinguishes the perspective of a producer from that of a builder. Entrepreneurs who view themselves as producers are concerned with the day-to-day logistics of their businesses (i.e. driving sales and fulfilling client purchases).
Builders are able to “zoom out” and see the bigger picture; where the end goal is the day they can step back from their businesses without disruptions in profitability and progress. Owners who are builders recognize that they are only temporary producers and lifetime builders.
Once an entrepreneur builds a self-sufficient business, the business itself becomes the producer and the owner can choose to continue scaling the company, own it passively, or develop an exit strategy.
[hr]
Once an entrepreneur builds a self-sufficient business, the business itself becomes the producer and the owner can choose to continue scaling the company, own it passively, or develop an exit strategy.
[hr]
A self-sufficient business—what our company, Maui Mastermind, calls a Level 3 Business—does not manifest itself overnight. Once a small business owner consciously identifies as a builder, he or she must bring on team members who share the same mentality. Regardless of how large or small their roles are within the company, it’s important for team members to recognize the overarching objectives of the business and direct their efforts towards them.
If you, the business owner, are the only one operating with a builder’s mentality, progress stagnates. If every contributor refers to the same blueprint, they are able to build the structure efficiently and cohesively.
David Finkel, the CEO of Maui Mastermind, says, “Your business has to create value or no customers will hang around; it has to be profitable or it won’t be sustainable. But it also has to be scalable or it will always be limited by you, the owner. Yes, you can make a ton of money actively running a business, but why not make the money and have the freedom?”
Although it’s not easy to build a Level Three Business, the right frame of mind can help direct you along the path of success and create an enterprise that consistently creates and delivers profitable value—whether or not you’re running the show.
Maui Mastermind Chief Catalyst and COO Patty DeDominic is an accomplished entrepreneur who was named CEO of the Year by the Los Angeles Business Journal, inducted into the Women’s Business Owners Hall of Fame, is the former Chairperson of the Foundation for SCORE, and a former President of the National Association of Women Business Owners. In 1991 DeDominic acquired CT Engineering and grew it, and her other company PDQCAREERS, into one of California’s top employers with a staff over over 600 people across 30 states. In 2006, she sold her businesses to a privately held firm that boasts over one billion dollars in annual sales. Download a free copy of David Finkel’s bestselling book, “Build a Business, Not a Job!”, at www.mauimastermind.com.
© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.
