you when you talk about starting to just look at your business as if you're going to sell it. You think about all the things that changes in your mind and what you need to put in place and make it more valuable later on. Those would be systems and processes that remove you from needing to be there. Mhm what it's like if you're the only if you have to be there to run it. If all the values on you, then they're going to want you to hang around even though you sold it, so you're still going to be working so well. Here's the thing. This is what we're going to talk about the 6 ft because the six fees are really crucial for your audience to hear six pieces the infrastructure to build a sustainable, scalable asset. So when you're ready, you actually have something that people want to buy. The problem is, most business owners never build their business to something that nobody actually wants to buy. That's why 80% of businesses don't sell. So number one is people. If you are the owner and you're tied to the business and the business cannot operate without you, then you have. You don't have a business. You have a glorified job in which you go to work at every day versus a business that works for you. Virus don't want to buy a job. They want to buy a business. So entrepreneurs listen up high. You got to stop wanting to do everything yourself. You know you'll never grow unless you let go of the control. You can't control everything you need to focus on your strengths because you're not good at everything. I'm not good at everything. Nobody's good at everything. Figure out your strengths. Focus on your strengths. Higher your weaknesses. Get the right people in the right positions. People is the first p. You don't build a business, you build people and they build the business. So you need to get the right people in the right space. And you need to ask who questions. Steve, who opens the doors, who handles customer service, who handles legal, who handles accounting, who handles marketing, who had his manufacturing, transportation, logistics, environmental, etcetera. The list goes on and on. All entrepreneurs should stop right now. Pauses, podcast and write down your list of all the hooves in your company and put down the names next to each who. Here's a clue. You should never be next to the who. You should never be next to the Who Because if you are, then the business can't run without you and you will never maximize value. Have a dentist that called me to sell this business. But in practice, 45 years, one dentist, one dentist and three dental hygienist. He's like Michelle. I can't stay. I'm exhausted. It's 45 years and I'm like, You know what? Too bad you should have figured about this a long time ago. You know, you, they're going to have to stay for two or three years, and the purchase price will be dependent upon you. Stay in this can be tied to you stain or get an associate. But you have nothing to sell because the businesses you and when you leave the patient sleep. All right. So people is very important. The second P is product. You gotta ask yourself, Is your product driving or dying is on the way up on the way out. Do you have an Amazon way up here, or do you have a blockbuster. And let me tell you, because you didn't ask me. Michelle, why are 70% of these businesses going out of business have been in business 10 years or longer? Well, here's the answer, Steve. It's because these businesses that are going out of business is because they stopped doing one thing and one thing only. They stopped doing what I call a mime. A. I am a mom. Always innovate and market always innovate. Okay, product is innovation. Innovation. So blockbusters on Netflix they did nothing about it. They have the opportunity to buy Netflix. They sat back fat and happy and out of business. Toys R Us in business, 70 years did nothing different. Zero innovation and wonder why they went out of business. So innovation is key, especially with this pandemic right now. So here's three great questions for you to ask yourself. Write them down, write them down. And you know what? You probably have to hire an expert, get a mentor or get get Steve. Get somebody to help you figure this out, because when you're in your fog, guess what, Steve, It's foggy. It's hard. So you need an outsider's perspective to help. You really see things that you're not seeing clearly because you're in the middle of your chaos. So three questions Amazon to this in the nineties. Ask yourself, what business are you in Amazon? Ask themselves. What business are we in? Well, they were in the book business, but they actually go. Bingo. We'll stop right there, Steve, because you can't give away the answers. They were in the book selling business, right? What was the next question to ask themselves? What did we do better? What? What do we do better than anybody else? Anybody else? And they said fulfillment. We can fulfillment better than anybody else. The last most important question is, what business should we be in now? Go, Steve. Logistics nation means shipping all the products to you. Absolutely. They should be in the fulfillment business. And, like ding ding, ding, dong, dong dong, we should be the fulfillment business. Those three questions right there transform Amazon from a small bookseller to multibillion dollar robot conglomerate that they are today. And so, Steve, you do consulting right into coaching and you do mentoring. So you work with your clients on those questions, you know, because It's hard for business owners to say, All right, we know what we do. What do we do? Really, really well, And then it's hard for them to say, What should we do? What what does this will be in? Um, so that's product. You have to pivot. You have to innovate. Let me tell you what. So many business owners are in trouble right now because of covid. It's because they never diversified. They have one revenue center, Uh, and they have about 1 to 3 months of working capital. And then they wonder whether out of business, you gotta be diversified. I have multiple companies. So if one business is bad, one business does not do good. This year, I've got other businesses. They pay me right, and you should have a year's worth of working capital. One year, at least, one year's worth of working capital. That's easy. It's been hard to do, Easy said. Hard to do. Never. Nobody ever said business was easy. No, but you know what do what's easy and life becomes hard. Do what's hard in life becomes easy love that number three p processes. So the process. This is number three and and let me just you probably already know this because you work with business owners. Most business owners don't think about processes. It's kind of like exit strategy. They don't think about processes until something bad happens in their company. And they're like, Oh, we need a process for that You know, I were selling manufacturing company and they had a catastrophic event occur on the manufacturing floor, and they're going to get sued from everybody, and they'll probably end up out of business filing bankruptcy. Unfortunately. And the owner says to me, You know, we really need a health and safety process for that and like you needed it before this. So you really should think about your processes early on. Tweet them as you go because, of course, you're gonna enhance your processes. You're gonna tweak your processes. But but here's where most business owners get it wrong. Steve, I think this is very important. Most business owners designed the processes around their agenda. I would tell you there's different service industries. Um, like chiropractors, doctors, you know, sometimes dentists, you know, they base their process around when they're open is based upon their agenda. You know, they're open. Okay, Monday, Wednesday, Friday from 9 to 12 and 3 to 6 and then and then Tuesdays and Thursdays. A half a day. And you know what I mean? That's based upon our agenda is not based upon the client experience. So you really need to design. Your process is based upon the client experience, and I work with a lot of contractors. Subcontractors can't get mad at me because my husband's a contract, but we have the multi disc multidisciplinary clinics, and he knows not to do that. So you need to design your customer, experience your processes around the customer experience in mind. McDonald's to this in the forties. Did you ever watch the movie The Founder best movie ever write such a great movie? So remember back in the forties, McDonald said, we want to develop a fast food restaurant. This was McDonald brothers, not Ray Crock. We want to develop a fast food restaurant around our customer experience. We want to design the processes around our customer experience. We want the customer to experience great tasting food. That's hot. That's fast. How do we do that? Do you remember Steve when they went to the tennis courts. Yeah, everything tape everywhere or they was chalk and they drew their kitchen and worked on the flow. The prospect on the floor. Remember they kept bumping into each other until they finally figured out who told who takes the customer's order. Who toasted buns. Who puts the brokers on who put the pickles on a stick? Is it to the client and, you know, fast, right? So even though that was done so long ago and tweaked and enhance along the way, that's those processes does design around The customer experience is what you can eat at McDonald's. Anyone on the road and still get the same experience, right? They never said it's gonna be healthy for you. They never said it's gonna be go again. I They said It's gonna be great tasting food fast, and that's what it is. They never sent a customer service is gonna be great because the customer services not great. And most locations it's not like Chick fil A Chick fil A built their processes around customer experience. Just examples built their processes around. You know, their slogan was happiness. We create happiness. Happy, happy employees, happy customers, happy employees. Happy clients. So you're really going to think about that? Because Have you ever dealt with a business, Steve? Where? Oh, my gosh. You're on your phone. Pushing this number, This number, this number. This number to get a life person. Or you have to tell your story to 56 different people to get some resolve on your problem, right? Right. They did it backwards. They designed the process is around their own agenda, not the customer experience number four, the fourth p. I want to say one more thing about processes. I have to say One more thing about possible, we have to have policy and procedure manuals. We have to have s o. P checklist to have employee handbooks and non compete work. Michelle, come on. This is so much work. Well, you're not going to start your business for $20 million because the first time that that viral walks in Just ask you for all of this. This is why it can grow the value of your business exponentially to pay attention to these details, right? And then hire Steve to come in and do your processes and policy and procedure manual. And that's just for you. So number four proprietary is the highest value driver of all the peas. Thank you.
should I sell my business or keep it? So here's the deal. You should always build your business as if you're going to sell it one day because nothing lasts forever. We don't last forever. Unfortunately, you know there's a cycle. There's a site, a human cycle in a business cycle. Businesses follow the same cycles of human. You're born, you're in the incubator. You go from incubator to an effort to a dollar, to a teenager to an adult, which is in your prime. It's a senior citizen to death. So what goes up must come down. And the bottom line is, you don't last. You don't live forever. Look at look at the little old lady to call me. Her husband died from a heart attack. You always build the business, so it's sellable if you get in a position where you need to sell because you had a heart attack and you want to make sure your family is taken care of or you're just diagnosed with cancer or something happens. So also, things don't last forever. Remember, 70% of businesses are going out of business, a bit of business for over 10 years, and they're not sellable because business owners have the wrong mindset. Should I sell my business? You should build your business as if it will be sellable. Just like you know your house right One day, you might want to sell your house and downsides. When your kids go to college. Nobody wants to buy a dump of the house. Nobody wants to buy a dump of a business, so you should always build it with the end of mind. And if you can keep on to on if you can keep it and you want to, that's fine. At least you have a sustainable business that's scalable. It's profitable and you can stay in business. Or maybe your Children will take it over. But you always should build it to sell. Does that make sense? Absolutely. That's why 70% of business owners That's why there's so many bankruptcies right now. Because business owners are thinking the wrong way, I may never want to sell it. It doesn't matter if you never want to sell it. What matters is you built it to sell, so if you ever get in a position where you want to sell it one day or you need to sell it one day, then you need to make sure it's sellable because here's the deal. There's five way sex at the company. One way is legacy. Transferring your legacy. Guess what? Your kids don't want your business anymore. I'm sorry to break this to you, but it used to be that businesses were handed from generation to generation and generation. But now the kids don't want their parents' business. They want to go, you know, create their own masterpiece. They don't want to walk in Mommy and Daddy's footprints or an Aesop, which is still into employees, you know, and that's a slippery slope. You have to be very careful about what s happened. Less than less than 10% of business transactions are done from ESOPs. You know, you could hire a manager to run the company, but then you're really still tied to it. So that's not really working, or you can sell a percentage of it or you can sell 100%. Those are the five ways to really exit. The other way is to self opinions on the dollar. Close your business with our bankruptcy. So what's your choice? What would you prefer