When you sign a big new deal or have a kick-ass month, do you write yourself an extra check out of the business? Some owners do – but should you? When I begin work with a new client, I make it a point to ask if they have an exit plan. That may seem like a strange question to ask so early in our working relationship, but it gives me insight into their thoughts, dreams and goals for business growth and personal happiness.
You see, there’s no right answer. But it does help me define the bumpers that need to be in place to allow my client to achieve success in a way that is meaningful for her.
Before you answer the question for yourself, it’s helpful to examine your behaviors and mindset.
If the business revolves around you and your life, then you have a lifestyle business. Your work takes a back seat to family and your other priorities. Growth is nice, but not a goal or focus.
On the other hand, if your goal is significant business growth, then you’ll need cash to fuel that growth. This cash will be used to invest in various aspects like your marketing equipment and your people. As you scale the company, adding and filling capacity can result in growth in the bottom line, profit, and equity value.
Business owners typically face a fork in the road as they work on their business: grow for the long-term or grow for now. Leaders who look to the long-term focus on caring for customers, employees and their community. Owners looking at the now are interested in serving their needs but not much else.
Sounds pretty black-and-white, doesn’t it?
But wait! The good news is that there is some middle ground. You’ll just need to work at finding the balance between the two that’s right for you, your family and your team. In fact, this middle ground is where the majority of small businesses reside. It may take some trial and error to find the balance for your company, but it will be worth it in the long run.
So, if you’re still trying to figure out the answer to my initial question, do yourself and your business a favor. Go easy on raiding the piggy bank. Remember, cash gives you options. Don’t limit yourself.
If you’re ready to add cash to your business and grow with confidence, give us a call.