Build a Business Not a Job. 6

MYTOP is an acronym I created to describe a key strategy business strategy.  I’ll explain what it means and how it works momentarily. But first, I need to preface why the MYTOP theory is a critical element for business success and sustainability.

With unemployment rates at unprecedented levels, more and more Americans are finding the best path to a new job is creating it themselves. As a result, we’re seeing an increase in the number of self-employed individuals. Whether you label them as consultants, independent contractors, or freelancers, they are in business for themselves and by themselves.

But I ask, “Have these people really started a business?” I would argue that they have not. There is a difference between creating a job for yourself and starting a business. When you create a job for yourself, once you stop doing what you are doing, the business — or income — stops too. By contrast, when you establish a business, the company eventually becomes bigger than you alone and can survive without your daily contributions.

Now to explain the MYTOP theory. MYTOP stands for Multiply Yourself Through Other People. In order to build a sustainable business, your service or product offering needs to be easily taught to and followed by others. Otherwise, you will always be “the business.”

At this point in my life, I own and operate two companies: Susan Solovic Media and ItsYourBiz.com.  Susan Solovic Media is all about me. It’s a business I launched because I have certain business initiatives that are personal to me. While I have three part-time employees working with me in the company, it will never be a sustainable business model because without me, there is no product.

However, ItsYourBiz.com is a company I helped launch that has the operational processes in place to become a sustainable business with a clear exit strategy. My partners and I wanted to build something with value beyond the three of us. So today, ItsYourBiz.com is a strong organization supported by a team of talented individuals who know how to provide a consistently quality product to our market — without my day-to-day operational involvement.

Why is this distinction so critical? Because building a business is hard work. It’s a major commitment of your time, financial resources, and intellectual capital. If you are “the business,” when you want to retire or sell the company, it will have little if any value. Without you, there is no business.

Conversely, a business organization that’s functional without you has ongoing value. Your exit strategy may be to pass your company on to your heirs. I’m seeing many businesses continuing with second- and third-generation ownership. Another possible exit strategy is to give your employees an opportunity to buy you out. Finally, you can always sell to an unrelated third-party or competitor.

There’s no right or wrong answer to these business scenarios. Some people are happy with a consistent income stream and don’t want to grow their business beyond that point. However, it’s important to recognize the limitations of that decision early in your business development. I’ve met many dissatisfied entrepreneurs who were unable to sell their businesses or practices because they allowed themselves to become the business.

 

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You can pre-order Susan’s new book, It’s Your Biz, right now!

Check out her website for some fun extra’s too!

About the Author Susan Wilson Solovic is an award-winning entrepreneur and journalist, author of three best-selling books, multi-media personality and contributor to ABC News and other outlets, public speaker and attorney. Follow Susan on Google+ Read more »

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  • http://thefitnessoasis.com Tina

    Great article because this is my goal . I do not want to create a job for myself. I want to OWN a business, not a job. Being a business owner you have others work for YOU. I have read so many people decide to start their own businesses so they can be their own boss only to realize they are working longer hours & making the same.

    My goal is to work less and earn more by leveraging others through VAs

  • Sunny

    Hey Susan,

    I didn’t really go through the whole article. But whatever I did go through, it did make sense. It really isn’t a business if the income stops if you stop working. That’s exactly I’m going through these days.

    I pretty much make about $2000 a month just by working 4 to 6 hours (Apart from my Day Job) a day. But if I stop working late night, that $2000 is going to stop coming to my Bank Account. It clearly means, I do not have a business (Whether you call it part time or full time).

    Your Article – It kinda clicked my thoughts! Thanks so much!!!

    Sunny

  • Genevieve John

    I would like to get a copy of your new book. Will you have a book signing in New York?

    • http://www.itsyourbiz.com Susan

      John
      Yes. I will have a book signing in New York. We are working on a date right now and should have it finalized soon.
      If you’d like to buy it now, here’s a link. http://www.susansolovic.com/orders/110910047042/edit
      I’ll send you a free eBook called “The Era of the Entrepreneur” which has advice on all sorts of topics for small businesses.
      Thanks for your interest.
      Susan

  • http://www.telfordassociates.com Kent Accountants

    Its the same principles as the one’s discussed by Michael Gerber in the E-Myth.

    A ‘business’ needs to be sustainable without you involved in the day to day running.

  • http://www.itsyourbiz.com Susan

    Kent
    You are right. Michael Gerber is a “rock star” in my opinion. He wrote the forward to my book “The Girls’ Guide to Building a Million Dollar Business.”