April 6th, 2012 David Finkel (Taxloopholes.com Advisor)
Wouldn’t it help to have a concrete road map through the entire lifecycle of your business from launch to exit?
Well today is your lucky day because I’m going to share with you a short, short summary of this road map. We call it the “Level Three Road Map.”
A Level One business is a business start up. At this point not only do you have little freedom (you’re working long hours just to get things going) but you have little control.
A Level Two business is a business that is operating successfully, but the business revolves around the owner of the business. In essence the business works as long as the business owner is there each day to make sure that it stays working. At Level Two you have the control, but no real freedom.
A Level Three business is systems dependent. It is a business that is independent of any one person–including the owner of the business! There are intelligent business controls in place, clear processes and procedures, and a winning management team to guide the venture.
At Level Three you have both the control and the freedom. You can still work in your business, but now it’s a choice each day, not an obligation.
Now we actually break down Level Two into Early, Middle, and Advanced Stage.
With that said, put your business to the test to figure out exactly where you are at on the Level Three Road Map!
Simple Test to Determine Which Level
Your Business Is At (And What to
Focus on at Each Step Along the Way!)
Read through the following descriptions. Choose the description that best matches your business:
Level One: Your business is in start-up mode. You are currently writing up your business plan, or looking to secure your initial funding, or you are scrambling to prove out your business concept. Now is the time for you to sharpen your thinking on paper and launch your business.
Early Stage Level Two: You’ve done your planning and initial organizing and your business is going. You’ve got a few paying customers but now you are absorbed in the mad dash to close more business to make sure your fledgling company survives. Now is the time to stay focused on creating the reliable sales and marketing systems and to control costs so that you can make sure your cash flow is stable and allows you to grow.
Middle Stage Level Two: Your business is profitable and stable. It works… but to keep it working you’ve got to be there to run it each day. You may have employees, but all the key decisions pass through your desk. If you’re not there to work in the business the business comes to a grinding halt. Now is the time for you to build out your businesses core and start to bring in the team to pull you out of parts of your business.
Advanced Stage Level Two: Your business is working well. You’ve got at least one or more key manager/leader in your business to run one of the five core areas of your business: Sales/Marketing, Operations, Team/HR, Finances, and Executive Leadership. Now is the time for you to focus on finishing out your business systems and developing your management team.
Level Three: Your business is systems reliant and has a winning management team in place. You’re working there each day is no longer a necessity. You can replace yourself from the daily need to be present for your business to function optimally. Now is the time for you to fine-tune your business strategy, your communications systems between you the owner and your key leadership team, and to define your role if you choose to scale or own your business passively. Also, you’ll need to refine your company dash board so that if you choose to own your business passively you have the key information you need to make sure it is firing on all cylinders (and if not, give you the warning and time to step back in and address the situation.)
So where is your business on the Level Three Road Map? And what does your business focus need to be?
Here is a link to a 4-minute online quiz you can use to more accurately determine your business’s current stage and level. PLUS based on your results, you can access a short video tutorial for each level and stage so you know where to best invest your business’s resources.
Taxloopholes.com Advisor and
CEO of Maui Mastermind®