The major problem with most businesses…
Let’s keep it real for a minute.
No business is perfect.
Not every business is a good fit for every person.
Heck, most people shouldn’t even be entrepreneurs to begin with.
It takes mental toughness and brass balls to succeed as an entrepreneur.
Most people do not have the vision, the work ethic, the tenacity or will power to handle the ups and downs, temporary setbacks and hardships that come with entrepreneurship.
If you think life is tough, try building a business!
That’s one of the many reasons people close down their business and return to the employee ranks.
That’s one of the reasons many people NEVER even start a business of their own.
They simply don’t have the patience, vision or work ethic.
Now there is nothing wrong with that.
To each their own.
I’m not here to judge anyone.
These people are still great people.
They’re your mom, cousin, Uncle Frank and best friend, Tim.
And then you have people who WANT a business of their own, but can’t afford to get started.
That’s a subject for another post.
That being said, some businesses are better than others.
Some business models are a better fit for some people and not others.
I’ve evaluated many different types of businesses.
Some were good.
A few were exceptional.
However, almost every business I looked at had one MAJOR PROBLEM.
Some of you might be guessing that problem is employees.
While that isn’t the major problem with most businesses, it is a common problem.
I would rather take a cyanide pill than have employees (that’s another blog post).
So, what’s the major problem?
Drum roll please…
The major problem that most businesses have, as I see it, is NO EXIT PLAN.
Most businesses owners have done nothing more than create themselves a job.
They are the business.
They are still stuck trading hours for dollars.
They have to keep going to work every day if they want to keep getting paid.
Or even worse, they have to let someone else run their business and place their blind trust that the other person will not steal from them, tarnish their reputation, or destroy what they’ve built.
Good luck with that.
Here’s a piece of advice I have for you that I wish someone would have shared with me…
Before you even start a business, create an exit plan for your business.
In other words, what is your plan to create a business that you can one day sell for a big profit.
As Stephen Covey says, “begin with the end in mind.”
Put some serious thought into what you need to do, from day one, to create a business that can run (and grow) without you (and without employees), and/or be sold one day for a big profit.
This is a very critical question… something most entrepreneurs never think of.
And before they know it, they are 50 and 60 years old and they are stuck in the grind.
They’ve created something profitable that is 100% dependent on them.
And if for any reason they stop, there is no business.
There is no money coming in.
I can’t think of a worse situation to be in myself.
Other Articles You Might Want to Read:
- The E-Myth Revisited
- The Failure Rate in the MLM Industry
- Dealing with Attrition
- Sample Blog or Website Business Plan
- How to Reduce Your Small Business Expenses
Heck, how many business models even offer that?
It ain’t perfect, but it’s pretty dang good.
Build it once and it can potentially pay you for life.
I’m not saying it will happen for you.
But, it can.
Or, you can build it big, sell it and cash out.
Many distributors do that.
It’s nice to have options.
I’m not saying you have to do network marketing.
But make sure you find a business that is a good fit for you.
Make sure you come up with your exit plan before you need one.
Make sure you create a business that allows you to have an exit plan.
Otherwise you will spend your whole life building something that you cannot sell, and does not provide residual income.
To me, that is a nightmare.
What do you think?
What is the most common problem that most businesses have?
Leave a comment below to share your thoughts.
I look forward to hearing from you.