The more valuable the owner is to the company, the less their company is worth. That may be good for the owner’s ego, but it’s bad for the company.
To determine if you have a job or run a business, ask yourself the following seven questions. If the answer is yes, then it’s a job. If the answer is no, then you’re on your way to building a valuable company. The lower your score, the more valuable your business.
1. Do you have to be there to make money? If you’re building a company, then the company generates revenues and profits even when you’re not there.
2. Is your personal reputation more important than the company’s brand? If so, then your individual impact is outsized and you have work to do.
3. Is your personal experience and expertise critical to the company? In a real company, processes and well-trained people generate the desired results.
4. Can you take time off whenever you desire? If not, then you need to do a better job of team-building, delegation, cross-training, and documentation.
5. Do you have to work harder to make more money? In a company, you have to work smarter, not harder, to make more money.
6. Do you solve the problems? In a company, employees are trained and empowered to solve the problems.
7. Do the majority of clients deal directly with you? In a company, the business is not reliant on the personal relationships of the owner.