Outside of the lottery, there is no such thing as a get rich quick scheme. Earning your millions takes the right combination of hard work, knowledge, and luck. One way some people do it is by starting a new business and building it into an enterprise successful enough to sell.
The history of business over the last few decades is replete with success stories involving entrepreneurs who started with virtually nothing and ended up with multi-million deals when it came time to sell their businesseses. You just have to know how to do it.
1. Find or Create a Need
The first step is to either find or create a need. The route you choose is up to you. In either case, the need you decide to fill should be one that does not already exist in a crowded field of competitors. Remember that your business will need to differentiate itself from all other competitors. The fewer competitors there are, the easier your task is.
2. Finance Your Vision
Next, understand that the principle of having to spend money to make it is not a myth. It is very much a reality. You are going to need to finance your vision one way or another. You’re likely to begin bootstrapping your new business at least to some degree. Eventually, you’ll need additional financing.
Be careful to finance your vision wisely. You might choose to go to a commercial bank. Or perhaps you will be more interested in a private lender like Nationwide Corporate Finance. You might even turn to equity investors, peer-to-peer lenders, and crowdfunding.
Regardless of your choice, understand that how you finance will partly determine the future of your company. You need to find financing that fits your circumstances, does not drain your resources, and doesn’t turn over control of your business to those funding it.
3. Practice Open-Book Management
Open-book management is a strategy of managing a company in a way that motivates employees to behave like business partners rather than just workers. It creates a model that incentivizes workers to invest themselves in making money.
It’s often said that workers who are not invested in the companies they work for require supervision. On the other hand, those who are invested supervise themselves. That’s what open-book management does. It creates a team of workers who all have a stake in the success of the company. When everyone has a stake, a company tends to grow and expand consistently.
4. Create Repeatable Systems
Business buyers want to see companies that consistently repeat their successes over and over again. In order to accomplish that, you have to develop repeatable systems. You have to develop strategies and methodologies that consistently produce positive results.
5. Keep Accurate Financials
From day one, keep accurate financials on your business. This may involve two different kinds of accounting methods, depending on where your business is located. First, the accounting department should be practicing tax accounting in order to limit your company’s tax liabilities as much as possible. Remember that tax accounting pertains only to taxable income.
Any intent to sell your business suggests the accounting department should also be creating a separate set of records under generally accepted accounting principles (GAAP). You are not keeping two sets of books in order to conceal income, rather you are practicing two means of accounting in order to give buyers a full picture of your company.
The taxman is only interested in taxable income. Buyers want to know more. They want to know the full value of your company down to the last penny. That’s what GAAP accounting is for.
6. Work Yourself Out of a Job
Finally, you need to work yourself out of a job. What does that mean practically? It means building a business that does not depend on you for its survival. If the company cannot get along without you, how can a buyer be expected to come in and take over? It cannot, and it will not.
It can be difficult to let go of a company you have built from the ground up. But if your goal is to earn your millions by building such a company and then selling it, you are going to have to let go at some point.
It is possible to make your millions by building and selling a business. People do it all the time. You now know the basic principles for doing it. Do you have what it takes?