How to BUILD a business that lives BEYOND you!

Summary

This 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

00:00

📈 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.

05:01

🛠 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.

Keywords

💡End Goals

End goals refer to the ultimate objectives or destinations that a business aims to achieve. In the context of the video, the speaker discusses four possible end goals for a business, emphasizing the importance of clarity in these objectives for business owners. The script mentions that these goals can range from shutting down the business to transferring it, merging, or even listing it on the stock market.

💡Business Owner

A business owner is an individual who has ownership and control over a business. The video script highlights the role of the business owner in determining the direction and end goal of their business. The speaker advises business owners to be clear about their ultimate goals and how they plan to move the business forward beyond their involvement.

💡Transferable Business

A transferable business is one that can be passed on to another party, such as children or senior team members, to continue its operations. The script explains that for a business to be transferable, it must have solid teams and systems in place, ensuring that it can operate independently of the original owner. The concept is used to illustrate one of the potential end goals for a business.

💡Merger and Acquisition

Merger and acquisition (M&A) refers to the consolidation of corporations or entities through various types of financial transactions. In the video, the speaker describes M&A as a potential end goal for a business, where the business owner may choose to merge with a larger organization or acquire smaller ones to grow. This requires a well-structured business with financial transparency and compliance.

💡IPO (Initial Public Offering)

An Initial Public Offering is the process by which a private company goes public by offering its shares to be traded on a stock exchange for the first time. The video script presents an IPO as a possible end goal for a business, allowing the business to be listed on the stock market and owned by the public, creating a legacy that can live beyond the original owner.

💡Business Scalability

Business scalability refers to the ability of a business to grow and expand its operations, often by increasing production, expanding into new markets, or adding new products or services. The script emphasizes the importance of building a scalable business to ensure it can be transferred, merged, or listed on the stock market.

💡Financial Transparency

Financial transparency means that a company's financial information is clear, easily understandable, and available to all stakeholders. The video mentions the need for financial transparency as a prerequisite for businesses considering mergers, acquisitions, or an IPO, as it makes the business a more attractive and credible option for investors or buyers.

💡Corporate Governance

Corporate governance refers to the system of rules, practices, and processes by which a firm is directed and controlled. The script discusses the importance of strong corporate governance systems for businesses aiming to go public, ensuring high accountability and ethical practices that build trust with the public and regulatory bodies.

💡Business Legacy

A business legacy refers to the lasting impact or the heritage that a business leaves behind, often associated with long-term success and sustainability. The video script uses the term to describe the outcome when a business is listed on the stock market, creating a company that can continue to operate and grow beyond the involvement of its original owner.

💡Owner Dependence

Owner dependence in a business context means that the operations and success of the business are heavily reliant on the owner's direct involvement. The script warns against building a business that is solely dependent on the owner, as this could lead to the business shutting down when the owner decides to stop working or retire.

💡High-Intensity Training

High-intensity training, as mentioned in the script, refers to an intensive educational session designed to provide concentrated learning and skill development in a short amount of time. The video offers a 40-minute high-intensity training as a resource for business owners to learn how to structure their businesses for profitability and scalability, aligning with their desired end goals.

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