Creating A Business That Operates Independently Of You
Have you ever heard of Jodie Cook? Jodie successfully scaled her social media agency to a point where she could exit and has since been authoring books like 'Ten Year Career'. She also frequently contributes articles to notable platforms, primarily Forbes, about the entrepreneurial journey.
Flashback to when Jodie started her agency; every business detail required her attention. Taking a summer vacation in 2014 was out of the question due to her intense involvement in her agency's day-to-day operations. This insight prompted her to streamline her business processes using Standard Operating Procedures (SOPs). The result? She got back her autonomy and flexibility in her schedule.
Why Pursue Autonomy in Business?
Personal Freedom: Who doesn’t relish the idea of taking spontaneous vacations or extended sabbaticals? Picture the tranquillity of sunset cocktails by the beach.
Empower Your Team: By allowing your team to craft and refine SOPs, they not only demonstrate their expertise but also grow within their roles. As they embrace more responsibilities, they evolve into key players in your business.
Enhanced Growth: Disentangling yourself from the nitty-gritty paves the way for accelerated growth because you have eliminated the primary bottleneck, you.
Boosted Sellability: A self-sufficient business is more attractive to potential buyers and to you as the seller, for several reasons:
Higher valuation.
Smoother transition post-sale since the operations aren't reliant on the owner.
Reduces or eliminates the need for an earn-out*, securing a more immediate payout.
How To Decouple Yourself From Operations
Audit Your Time: Scrutinize your calendar to pinpoint tasks and the time each consumes.
Catalog Your Activities: Use a spreadsheet or time-tracking software to list tasks, duration, and their associated processes.
Prioritize: Determine which process you want to detach from first.
Draft an SOP: Document the exact steps required for the identified process. This becomes your SOP.
Delegate or Automate: Employ software for automation or entrust the process to a team member using the SOP as a guide.
Reiterate the last three steps until you've systematically removed yourself from various processes, making room for activities you're truly passionate about.
Anticipating Potential Roadblocks
Navigating the path to more autonomy can prompt a bunch of questions, ranging from what tasks should be automated vs. delegated to the level of detail an SOP should encompass. Here at The Big Exit, we're adept at guiding entrepreneurs through these queries as developing efficient procedures is integral to our 4 EXIT HABITS™ framework.
Do you feel deeply entrenched in your business's day-to-day, don’t hesitate to reach out. We're geared to help entrepreneurs transition from being indispensable to enjoying the freedom that a well-structured business brings.
Here's to autonomy and prosperity 🍹
*Note: An earn-out is an acquisition agreement whereby a portion of the purchase price is contingent upon future performance metrics. This often necessitates the seller's continued involvement, potentially impacting the final payout.
