Why your lifestyle business could be your most valuable asset
Your business could be one of the most valuable assets that you will ever have and I bet at no time yet, have you considered that or been made aware of it.
If you have not got a plan for your retirement, if you don't have your pension in place, you haven't done any kind of saving towards that, understand me when I tell you, this business that you're creating is the most valuable asset that you have.
Because ultimately, if you're smart about it, and if you build intentionally, you will be able to use the business that you have built as a vehicle to provide you with the funds that down the line will provide for your retirement.
Let’s dig a bit deeper.
How to make your business your most valuable asset
If you've got a business, we have got the chance to reconsider the foundations and make sure that you have the right foundations in place.
We've got the opportunity to take a look at the products or services that you're selling, and make sure they're priced well (to maximise number of sales and profits), to make sure that your product/service ladder is solid, that you have recurring revenue and that we can make as much revenue as possible without your involvement.
We have the opportunity to review and tighten up your expenses and to ensure that only expenses with a solid ROI are in the business.
We can build the right assets within your business and service the ones you already have so that they feed further into revenue.
We can reduce the liabilities, both in terms of debt and things that make your business inefficient.
We've got the opportunity to create value in your business, that means down the line it could be an asset that you sell. It could be in the next three to five years, or the next 10 years, it's your call. It will likely depend on your age, how much you love what you do, what your long term goals are but you could turn that business into an asset that you can sell.
Creating an asset you can sell
When we sell a business we usually sell it for a valuation based on a multiple of revenue or EBITDA, which just to keep it simple for now, think of as profit before tax, interest and depreciation.
The key thing I want you to take away from this blog, is that you have this opportunity to build an asset that down the line could be your future pension and if you don’t have one right now, it is likely that you very much will need your business to provide it!
See what I mean when I say this could be your most valuable asset?
This means you need to get the right foundations in place, follow my series of blogs that are coming up to find out how.
You also need to get out of the mindset that you just need your business to make you some money this month. If you are in this, start thinking like a business owner. You could well be building a valuable asset that will see you to the end of your life, in a monetary sense. This needs work, on the right things and at the right time.
If you get it right, it will be the most valuable asset you have.
Embark on your journey out of Destination Unknown
Join my free community in Destination Unknown and I will help you with the how.
If you are running a business and trying to build it into something that will help you live your ideal lifestyle, then Destination Unknown is the place for you.
We will be talking strategy, offers, launches, numbers, networking - and all the other practical steps you need to be taking to create your dream lifestyle business. So be prepared to do the work!
It will be focused on how to take your income to the next level, so there already needs to be a foundation for us to build on.