How to BUILD a business that lives BEYOND you!
Summary
TLDRThis video script offers a deep dive into the four potential end goals for any business: eventual shutdown, transfer to successors, mergers and acquisitions, or going public through an IPO. It emphasizes the importance of clear objectives and outlines the preparations needed for each scenario, from building scalable systems to ensuring financial transparency and strong corporate governance. The speaker provides actionable insights to help business owners align their strategies with their desired outcomes, and invites viewers to a 40-minute training for further guidance.
Takeaways
- 🏁 The video discusses four possible end goals for a business owner to consider while building their business.
- 🔍 The first end goal is the eventual shutdown of the business if it's not scalable or profitable, and lacks systems and teams.
- 🔑 The second end goal involves making the business transferable, either to children or senior team members, which requires solid teams and systems.
- 🤝 The third end goal is to pursue mergers and acquisitions, which requires financial transparency and compliance to make the business attractive for acquisition or merger.
- 🏦 The fourth end goal is to list the business on the stock market, which necessitates a scalable business, strong brand, and robust financial and corporate governance systems.
- 🛠️ Building a business that is owner-dependent may lead to its shutdown upon the owner's retirement or discontinuation.
- 👨👧 To make a business transferable, it should be attractive enough for the next generation or team members to take over and scale further.
- 💼 Mergers and acquisitions can be a growth strategy, either by acquiring smaller businesses or merging with a larger one for an exit strategy.
- 🏛️ Listing a business on the stock market creates a legacy that can outlive the owner, requiring high accountability and a strong public image.
- 🎯 The video emphasizes the importance of clarity on the end goal to guide the business's development and strategy.
- 🎁 A 40-minute training is offered in the video description to help design and structure a business for scalability and profitability.
Q & A
What are the four possible end goals for a business according to the video?
-The four possible end goals for a business are: 1) Shutting down the business when the owner decides to stop working; 2) Building the business to transfer it to someone else, such as children or senior team members; 3) Going in the direction of mergers and acquisitions; 4) Listing the business on the stock market.
What happens if a business is not scalable and lacks systems and teams?
-If a business lacks scalability, systems, and teams, it is likely to shut down when the owner decides to stop working, as it is not built to continue beyond the owner's involvement.
Why might children be unwilling to take over a 'mom and pop' store?
-Children might be unwilling to take over a 'mom and pop' store if it lacks scalability, systems, and a solid team, and if they have bigger aspirations or opportunities elsewhere.
What is required to make a business transferable to children or team members?
-To make a business transferable, it requires solid teams, functional departments like marketing, sales, operations, and clear strategies and systems in place, reducing dependency on the owner.
What is the significance of mergers and acquisitions as an end goal for a business?
-Mergers and acquisitions can help a business grow by acquiring smaller businesses or merging with a larger one, allowing the business to continue with a solid management team and strategic direction.
Why is financial transparency important for a business considering mergers and acquisitions?
-Financial transparency is crucial for mergers and acquisitions because it ensures the business is a clean and viable proposition for being bought or for buying out other businesses in the industry.
What does it mean to list a business on the stock market?
-Listing a business on the stock market involves making the company publicly owned, with a board of directors accountable to the public, and implementing strong financial and corporate governance systems.
Why would a business owner choose to list their business on the stock market as an end goal?
-A business owner might choose to list their business on the stock market to create a legacy business that can live beyond them, especially if their children are not interested in continuing the business.
What preparation is needed for a business to be listed on the stock market?
-Preparation for listing a business on the stock market includes building a scalable and profitable business, establishing a strong brand, and implementing robust financial governance and corporate governance systems.
What additional resource is offered in the video for business owners to learn more about structuring their business?
-A 40-minute high-intensity training is offered in the video description, designed to help business owners design and structure their businesses to be profitable, scalable, and not dependent on them.
How has the 40-minute training impacted business owners according to the video?
-The training has transformed the lives of more than 35,000 business owners by providing strategies and systems that have helped them build meaningful and valuable businesses.
Outlines
📈 Business End Goals and Strategies
This paragraph introduces the concept of having clear end goals for a business. The speaker emphasizes the importance of understanding the ultimate aim of one's business venture to ensure its longevity and success. The four potential end goals are briefly listed: shutting down the business, transferring it to successors, engaging in mergers and acquisitions, or going public through an IPO. The paragraph sets the stage for a deeper dive into each of these goals and the preparations required to achieve them, highlighting the need for business owners to think beyond their immediate operations and consider the long-term vision and sustainability of their enterprise.
🛠 Building a Transferable or Acquirable Business
The second paragraph delves into the specifics of the second and third end goals: transferring the business to a new owner or engaging in mergers and acquisitions. The speaker discusses the importance of building solid teams and systems to make a business transferable, which could involve passing it on to children or senior team members. For a business to be attractive for transfer, it must have clear strategies, systems, and teams in place, reducing dependency on the owner. The paragraph also covers the considerations for mergers and acquisitions, such as financial transparency and compliance, to make the business an appealing target for larger organizations or to acquire smaller ones. The speaker suggests that these strategies can help build a legacy and ensure the business continues to thrive beyond the original owner's involvement.
Mindmap
Keywords
💡End Goals
💡Business Owner
💡Transferable Business
💡Merger and Acquisition
💡IPO (Initial Public Offering)
💡Business Scalability
💡Financial Transparency
💡Corporate Governance
💡Business Legacy
💡Owner Dependence
💡High-Intensity Training
Highlights
The importance of having a clear end goal for a business owner's journey.
The four possible end goals for any business: shutdown, transfer, mergers and acquisitions, and listing.
Understanding the inevitability of shutdown for businesses that lack scalability and profitability.
The necessity of building solid teams and systems for a business to be transferable.
The appeal of transferring a business to children or senior team members as a viable end goal.
The strategic approach to mergers and acquisitions for business growth and eventual exit.
The importance of financial transparency and compliance for businesses considering mergers and acquisitions.
Listing a business on the stock market as a means to create a legacy and ensure longevity beyond the owner.
The requirement of strong financial governance and corporate governance systems for a public listing.
The impact of owner-dependence on the sustainability and transferability of a business.
The need for a scalable and profitable business model to attract the next generation or team members.
The role of marketing, sales, operations, and human resources in creating a well-oiled business engine.
The strategic planning involved in building a business for potential mergers or acquisitions.
The preparation required for a business to be listed on the stock market, including brand building and public trust.
The potential for a business to be a legacy, living beyond the founder through public ownership and strong governance.
A special 40-minute high-intensity training offered to help design and structure a business for desired end goals.
The transformative impact of the training on over 35,000 business owners, providing strategies for building meaningful and valuable businesses.
Transcripts
in this video I'm going to break down
for you what are the possible four end
goals in your journey as a business
owner while you're building your
business it's very important as a
business owner to be clear about what is
the end ultimate goal of your business
how are things going to move forward
Beyond you in that business now that's
where this conversation that I'm going
to have with you today is extremely
extremely important so pay attention
make a lot of notes this is probably a
conversation that shouldn't happen on a
YouTube video it should ideally happen
one to one but I want to give you
everything that I've got to help you
build your business with absolute
Clarity so let's understand what are the
possible four end goals for any business
I'm going to list all the four down in
one shot and then I'm going to elaborate
each end goal and what kind of
preparation goes in if you want to go
towards that particular end goal so
let's understand this together the first
end goal of any business is to shut
eventually where you can't do anything
and Beyond you that business comes to a
standstill and everything stops the
second end goal of a business is to
build it so that you can transfer it and
I'll talk about who you can transfer it
to and why would they be willing to take
it up and continue it the third end goal
for any business is to go in the
direction of mergers and Acquisitions
and the fourth end goal is to list the
business let's understand what do these
four end goals actually mean what do
they represent and what kind of
preparation do you need to do based on
the end goal you want to take your
business towards consider this the one
inevitable outcome if you don't build
something which is scalable if you don't
build something which is profitable if
you are building something which is like
a hobby business is that eventually that
business will shut down when you decide
not to continue with that business
because if your business does not have
teams does not have system systems does
not have departments has not created a
significant penetration in the market
then even your children don't want to
enter that business so a business that
is built around the business owner where
everything is owner dependent and
there's nothing that is sustainable
about it ends up going in the direction
of shutting down now that is one end
goal so be clear if your current
approach is where everything is owner
dependent everything is dependent on you
you are the one who's servicing clients
you are the one who's getting clients
there's nothing that happens without
your presence then actually what you're
building is a business that can only be
shut when you decide to stop working
then let's look at the second end goal
of any business the second end goal of
any business could be for you to
transfer that business either to your
children or to your senior team members
who you trust to carry forward that
business when you decide to retire now
what can make a business transferable
that's a very important question to
answer if you really want to make sure
that your business continues Beyond you
and your children are willing to get
into the business or your team members
are willing to take that business
forward then you need to build solid
teams and systems you need to have
functional functions like Marketing
sales operations where there are clear
strategies clear systems clear teams and
not everything can be dependent on you
think about it it will not excite your
children to take forward a mom and pop
store the only reason they will take
forward a mom and pop store is if they
don't have a bigger aspiration or a
bigger goal or a bigger opportunity that
they are exposed to if you want to
attract your own children into the
business so that they take it forward
then in your journey as a business owner
at least build it to a point where it's
worthy for them to dive into that
business and scale it further so if you
want to build a business which is
transferable the basic requirement is
you need to have functioning functions
you need to have Marketing sales
operations accounts human resources and
management set up in a manner where in
each one of these activities there are
clear strategies there are clear systems
and there are clear teams which is
making your business a well oiled engine
where the owner is not involved on a
daily basis and the owner is free from
day-to-day fire fighting and can focus
on growth and expansion that's when this
business becomes transferable you can
trans transer it to your children or you
can make some of your team members your
partners by diluting some portion of
your equity and setting up an
arrangement where they take the business
forward Beyond you when you decide to
retire and still continue to remunerate
you for the foundation that you've built
for the organization that you've created
so that is the second end goal and it
requires a different type of preparation
in comparison to a business that is
predictably going to shut down because
everything is owner centc the third end
goal or third option any business has is
to go in the direction of mergers and
Acquisitions now what do I mean by this
one way of growing your business is to
acquire smaller businesses in your
industry and thereby acquiring the
management teams of those smaller
businesses who you can later make
directors in your business and they can
take the business forward the other way
is to merge your business with a larger
organization in your industry where you
sell your stake and you exit the
business so this is largely an
acquisition or a sale option which can
help you build a solid management team
not just managers but people at a
management level at a seit level who
have the Acumen who have the Strategic
thinking capability who have the
business ability to build an
organization and take it Forward mergers
and Acquisitions require you to not just
build departments not just penetrate the
market and have a good good amount of
customers in your industry but it also
requires you to structure your business
in a manner where there is financial
transparency where there is good amount
of compliance so that your books of
accounts are clean and it makes you a
good viable proposition to be bought
over by a larger player or for you to
buy out smaller players in your industry
and thereby use their management acument
to continue the business so this is the
third option which is largely a sale
based approach option where you are
eventually going to sell out your equity
in the business and you're going to
retire from the business the fourth
possible end goal for any business is to
list the business on the stock market to
do an IPO of the shares of your business
make sure that the public owns the
company you have a board of directors in
place who are answerable to the public
you have strong financial compliance
system corporate governance systems
where the entity
is bigger than an individual and
therefore you have the ability to build
a legacy business which can live even
Beyond you look a lot of business owners
who've built successful businesses when
they reach their 50s and 60s and when
they are planning to retire and let's
just say their children don't have the
interest in their own business or in
that particular industry use this option
of listing the company on the stock
market making the public the owners of
the business having strong
accountability and governance systems in
place which will ensure that the
business and the organization will live
beyond the owner this is truly a legacy
business now the preparation for this is
very different you got to firstly build
a scalable business in your own tenure
as an entrepreneur then you got to also
build a brand where the public is
willing to associate and own shares of
that brand and obviously you got to have
strong financial governance and
corporate governance system systems and
mechanisms where there is high
accountability zero fil frage zero kind
of non-compliance or unethical practices
so that you build something that is
credible that the world that the public
at large is willing to own and keep
alive as your legacy so this is the
fourth end goal for any business my
objective of doing this video is to get
you into thinking what is the end goal
towards which you want to build and to
help you get clear about this I have a
special gift for you in the description
below there's a link that we've inserted
of a 40min minute high-intensity
training which will help you design and
structure your business in a manner
where it is not dependent on you which
will help you understand what it takes
to build a profitable and a scalable
business so that you can choose the end
goal of your desire make sure you click
on that link and continue your Learning
Journey because that 40-minute training
has transformed the lives of more than
35,000 business owners they've used the
strategies and systems have broken down
there and have been able to build
something of meaning and value so click
on the link continue your Learning
Journey so that you can build a business
in alignment with the end goal that you
desire
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