The Journey Of A Business
1) Journey starts with the Business Owner trying to master the Profession. This is the time to dirty one's hands and to learn the nuts and bolts. His thinking is restricted to Salary in this leg of the journey
2) Then the journey continues and the Businessman begins to Scale up slowly one step at a time. He hires a few team members & learns to delegate work. However he still supervises everything and is the Captain of the ship. In this leg focus moves from Salary to Profit
3) The next leg of the business journal is most crucial. In this leg focus is on transforming a Profession into a Business. Many businessmen find it very hard to navigate this stage because here his focus shifts from running a Practice to Building a Business. He needs to start looking inside rather than outside. Some of the focus areas for him are:-
A) Brand
B) Trademarks
C) Systems and Processes
D) Hiring Team Leaders
E) Implementing Technology
F) Deciding on Company Structure
G) Deciding on how to Capital raising strategies
4) His focus is on increasing Volume & Building Brand
5) This leg is transforming from Profit into Cash Flow Stage
6) Now we move further into the Business Journey when the Business Owner recruits a CEO and replaces himself
7) Now he focuses on playing an Invisible role. Many Businessmen fail badly in this stage. Their love of being in control comes in the way. Letting Go of control & Power is the hardest of all things to do but this is perhaps the most important decision for a business.
8) In this leg the whole idea is to Inject the Brand & Values into the Business and to make the Business stand on its own feet and truly self sustainable.
9) This is when the Valuation of the business sky rockets because Market Loves Self Sustaining Businesses
10) Truly Self Sustaining Business means a Business System that can run by itself with the help of Available and Easy to Recruit Professionals without undue Interference from the Promoters
11) While at the same time Promoters show their commitment to their Business System by owning a significant share of the business even when they have let go Management Control.
12) Market in a manner of speaking says, "if the Promoters can own such a Significant Share of the Business and still have the confidence and conviction of staying Inactive then it is worth buying this Business even at a higher Valuations"
13) This is the Cash Flow to Valuation Transformation Leg of the Business Journey
14) Now the Promoter starts the process of Going to Public with his Company's IPO.
15) This is the Point of Wealth Maximization .
posted by Raja Bhattacharjee @ October 20, 2021
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