There are lots of moving parts to building an 8-Figure Business. First, why build an 8-Figure Business? There is significant profit potential, and more time off. Most would wonder how can there be more time off? Because big businesses must run without you. There is also the massive exit potential because at $10 million+ the purchase price of your business goes up dramatically as bigger potential buyers arise.
When building an 8-Figure Business you need to have a framework that includes goal setting, of course you must know where you are going if you want to have any chance of getting there. Set SMART Goals, Specific, Measurable, Achievable & Realistic and Time-Bound. Also set exit, 5 year, 1 year, goals for the next quarter and the next month. One of the biggest mindset shift in building an 8-Figure Business versus building a smaller business, is thinking about and setting asset goals.
Future economic benefits are long term planning, and the reason most smaller business owners are not thrilled about obtaining assets are because most assets cost money and hurt short-term profits, but lead to long-term success. Companies create value by building assets that provide themselves or acquires future economic benefits. What are types of assets:
4. Technology/Intellectual property
5. Distribution network
7. Reputation/Band (trademarks/copyrights)
10. Strategic partnerships
11. Plants, operating equipment
12. Vehicles, furniture, real estate
When building an 8-Figure Business, the key question you should ask is will building each of these assets, give you future economic benefits, and will this allow you to be a throne in your competitions side and/or give you an competitive advantage? Will this make your business an extremely valuable acquisition candidate?
Another area is establishing metric goals which are defined as parameters or measures of quantitative assessment used for measurement, comparison, or to track performance or production. The key is figuring out the metrics or KPIs that yo must set and measure for your business. Other than a few categories, metrics are more short-term (1 year or less).
Next you want to build your system which is a procedure or a process for obtaining an objective or completing a task. There are 4 basic reasons for needing systems. Precision & consistency, time and money, scalability, and last is to free your time & build business value. This also makes your business more attractive and valuable to potential acquires.
Building an 8-Figure Business could provide generational wealth beyond your wildest dreams. Just yesterday Bloomberg had an article that stated the heirs to Wal-Mart made 5 Billion dollars in one day, and just think Sam Walton died in 1992, and look how much the are still making decades latter. This is will worth it.