When was the last time you thought about your legacy? For a lot of business owners, their business and what happens to it when they stop being part of it is a large part of the legacy they leave behind.
At the global ActionCOACH conference in Vancouver this year, one of the speakers gave a very interesting insight – to develop your businesses in the right direction while at the same time creating a legacy.
The idea here is that you should be really clear about exactly what you are spending your time on.
Sometimes, you may need to spend time on increasing your income in order to give you the room to take the next step.
But the ultimate goal should always be to build assets rather than maximising your income.
When it comes to your business – you need to be clear about whether your actions are turning your business into an asset – by developing systems for managing a growing team or cultivating smart inbound marketing channels – or whether you are simply increasing your personal income (by creating a job for yourself).
The asset is what is actually valuable to you – whether you want to sell it on to a buyer, or whether you want to build a legacy and leave something for your children. So if you are not moving towards developing your business into an asset then… well, what are you building?
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Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text:
I’ve just come back from Vancouver and we had a global conference of Action Coach there and it was absolutely brilliant.
We had some great speakers and the whole team of the conference was wealth creation. Now, yes as business women and as a business coach, I tell my clients that actually a successful business is one which is profitable. It can work without you and it can give you that profitable income in a sustainable way, right? And they are familiar with it but, you know, I’m sure you’ve had some occasions in your life when someone said something and it just makes so much sense. It made you see something in a completely different perspective altogether.
Now, one of the speakers during this conference said something very fascinating and in fact, I want you to write this down, okay? What he said was that “Transition of assets is always much much easier than the transition of income” and that statement of the transition of the asset being easier than the transition of income, made sense to me as a mother. And what I thought was, when I want to leave a legacy for my son, I don’t want to leave income behind.
I want to leave assets because that’s so much easier to pass on to him versus asking him to be in my seat so he can generate the income. Similarly, if you think about it as a, you know, whether as a parent or as a businessperson, I mean 1 out of 5 from stats which are available out there, 1 out of 5 business owners are able to sell their business successfully and that’s staggering, 2 out of 10, 1 out of 5. So what happens with the remaining?
And they’re not able to sell because they’re trying to sell the income, they are trying to make that transition happen, but the buyer is not interested in that. The buyer is interested in an asset which is always easier to pass on.
So my question to you really is, where is your energy being focused right now? And it’s possible that yes you need to focus on generating more profits and more income for yourself. But the question really is, who’s keeping you accountable? Who’s keeping you on track to make sure that you are building the asset value? You’re maximizing this asset because at the end of the day, whether as a parent or as a businessperson, when you decide to transition, this asset will be much easier to transition than the income.