April 11th, 2013 David Finkel (Taxloopholes.com Advisor)
I got a great voice mail a while back from Maui Advisor Rob Mabary about how owning several Level Three businesses has impacted his life. That really hit home for me since last year in Maui, Rob and I were talking about how he hadn’t made the decision to make his businesses fit his life, versus making his life fit his businesses. Well fast forward 12 months. Rob has really taken that input to heart and his 7 Level Three businesses (which generate several million of net income each year) now support his lifestyle versus him having to fit his lifestyle into his business.
I wanted to share with you 4 “tips” he shared that I think will make a difference for you.
1. The three building blocks of all Level Three businesses are systems, team, and intelligent business controls. How are you doing in these areas? Do you have scalable systems that help your business generate consistent results? Do you have a loyal and talented team you can build with? And do you have simple scorecards and metrics and other controls that allow you to know how your business is doing and make sure the right things are being done at the right time and the right way?
2. One easy way to scale your business is to look for complementary businesses that your business is already creating customers for and if appropriate, launch that new business. Rob and his wife Patrice launch roughly one business a year now and since they build the new business based off a stable business foundation of their other business as the main client that new business has a very high success rate.
What other businesses do you create customers for that you could set up your own second business to capture? Remember, the hardest part of launching a new business is securing your early clients, so if your old business would generate enough business to make your new business successful then your odds of success are very good.
3. Make sure you make the switch as your business starts to succeed in a big way to let your business fit your lifestyle, not your lifestyle force-fitted into your business. Sure in the early years you’re going to have to scramble to make the business go, but later on, don’t let that “habit” of how you work so hard keep you from enjoying the balanced life you have earned.
4. Final Tip:Master the skill of building Level Three businesses. It took Rob 8 years to build his last business to over a $1 million of net profit. He did it with business two in 18 months!
If you want real security in life, don’t build a job for yourself (aka: self-employed business owner). Instead master the skill of building successful Level Three businesses. Once you master that skill, no matter what happens to any one business you can always successfully launch, build, and sell or own your next business. That’s real security in this world.