I think a great deal about what it takes for a business owner to change their relationship to their business. I believe this is the most important part of moving from an active to a passive owner. And, for many business owners this is the best way to move towards retirement.
What is business relationship management?
The crux of managing your relationship to your business understands that you want to and will take actions to become operationally irrelevant in the day-to-day activities of running your business. If you are able to manage and change your business relationship you will find that you can either work less hours or spend more time on activities that will add value to your business.
Changing your relationship to your business allows you to move into Stage 2 where your primary concentration is on strategic and not tactical activities. Moving into Stage 2 requires you to have at least one key person who can watch over the da-to-day activities of your business.
How do I start changing my relationship with my business?
I believe the most important thing you can do is hire a chief operating officer. This person will be responsible for the daily activities of the business. You will still be responsible for finance, marketing, sales and strategic activities. Your new COO should manage everything else in your company.
If you business is like many that I work with this will free up at least fifty percent of your time. You will have the opportunity to not only think strategically about making your business better but will have time to do so.
To start changing your relationship with your business you should also build an organizational chart of the different functions your company has. In the beginning there might be only two names in all of the boxes, but as you make your company more successful you will find that other names start filling the boxes, your company will make more money and you’ll find you actually have options with what to do with your business.
I’m interested in if you’ve thought about changing your relationship with your business and if so, have you done anything about it. Let me know.
I find that a good exercise is to examine your company with the eyes of an outsider. I’ve developed a Stage 3 exit readiness report that might help you with this. Click on the button below to get more information about our complementary, customized report.