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Value Creation Blog

A Day In A Life Of A Passive Business Owner

Posted by Josh Patrick

passive_ownershipOne of the very best things you can do to improve the value of your business is to make yourself operationally irrelevant in your business. I call this making yourself into a passive business owner. It doesn’t mean that you don’t care or work in your business. It means that you let others take care of the day-to-day operations of your business.

You don’t have to be the first one in anymore.

That’s right, you don’t have to be the first one in. You also don’t have to be the last one to leave at night.

You’ve learned the art of delegation with authority. You have team members who open the shop and close at the end of the day. Your days of doing work that requires your presence are now over.

Customer services calls aren’t your problem.

Remember all of those customer service calls that you fielded? Those are also done. You only visit with customers when you want. Not when someone calls on the phone.

If there is a customer service problem you’ve trained key people to handle these calls for you. In fact, if you take these calls, both your employees and customers just might get upset. After all you no longer know what the correct protocols are for solving problems customers have.

You might work on marketing and almost never on sales.

The time you spend working is only on strategic issues. That means you might help develop strategies for bringing new business in. You might even think about opening a new division. You won’t be spending time on making sales calls except to the largest and most important customers you have.

When you do go and visit a customer it’s to make sure your company continues to provide high quality products and services. You want to only make sure your people are keeping the promises your company makes to its customers.

You get to focus only on the things you’re really good at.

When you’ve become a passive owner there is nothing that you have to do. Well, almost nothing anyway. You’ll get to focus on what you’re really good at and not what has to be done. All of the day-to-day activities in your business are being handled by people who are probably better at them than you ever were.

You now get to focus only on a very few things that you’re really good at. All of these items will really help make your company more successful. None of them will be operational.

You don’t even have to come in the office.

If you want to come in the office then feel free to do so. Just remember that you don’t have to come in. The work that you do is no longer dependent on you being in any particular place at any particular time. You can come and go as you please. That’s because the work you’re doing is not dependent on timing or location.

You really only have two jobs and they don’t require you spend a lot of time.

You do still have two jobs. Both of these jobs are really important. The first is you make sure that your company is providing products and services that your customers want to buy. The second is making sure your company is getting an adequate return on investments.

If either of these is out of whack, you don’t jump back in. You call your senior managers together, let them know there are issues and expect them to solve the problems. If they don’t then you’ll have to make changes. That’s the tough part, knowing when and if a change is needed.

I hope you like this picture. If you successfully become a passive owner two things will happen. First, your business makes more money. Second, you have options with what you want to do with your business as you age. How does this sound to you?

I’ve written a case study on how to become a passive owner in your business. If you’re interested in getting a copy of this case, click on the button below.

passive ownership mind map

 

Topics: value creation, wealth management, passive ownership

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