There is an option that business owners need to think about, especially in today’s environment where passing the business to someone else might not be possible. That option is to move from being an active owner/operator in your business to a passive owner.
A passive owner is involved in the business, but not to the extent that an active owner is. A passive owner will be involved in marketing and strategic directions but will not be involved in sales or operational issues. A passive owner will spend a few hours a week at their business and have systems in place that allow them to monitor progress the business makes.
Passive ownership depends on the owner successfully changing their relationship to the business. The owner must train people to operate the business on a day-to-day basis. They also must understand the key measurement issues on their business and have a simple report that continually updates them on how the business is doing.
Many business owners we speak with aren’t interested in selling their business. They are interested in working less hours and taking some of the daily pressures of running a business off their shoulders. Making the move to a passive owner requires planning, training and systemizing the business.
Do you have any interest in making yourself into a passive owner? If so, what specifically are you going to do to move yourself towards this goal? I would love to speak with you about passive ownership. Please either write me at Jpatrick@stage2planning.com or click on this link to set a time to speak with me.
I've put together a mind map on the specifics of becoming a passive owner. Click on the button below to go to our signup page to get this mind map. The map will show you the steps that are necessary to become a passive owner.