Are you ready to level up in your business?
To transition from Operator to Owner in your business, decisions must be made at the lowest possible level of your business.
One helpful framework is the five P’s: promise, product, process, people, and profit. By aligning these elements, you’ll gain freedom from day-to-day management and enjoy a more fulfilling life inside and outside your business.
Let’s talk about profit. Without it, you don’t have a business.
Profit brings freedom, which is the reason we become entrepreneurs in the first place. I’ve created the “Profit Hierarchy,” inspired by Maslow’s hierarchy of needs. The Profit Hierarchy has five levels: wealth, relationships, leisure, health, and legacy.
First comes wealth. You need to generate enough profit to sustain your business and personal life. Once you’ve achieved this, you can redistribute the profit to buy back your time. This might mean hiring a manager, marketing company, or salesperson to ease your workload. Until this first step is realized, it’s almost impossible to move to any of the following as you find yourself bound into making every decision and doing everything in your business.
Next is relationships. As you free up time, you can focus on nurturing connections with family, friends, and loved ones. For many entrepreneurs, this is a priority, whether it’s attending your child’s sports games or enjoying date nights with your partner. After going ‘all-in” on your business for so long, you realize that you’ve been missing the people that mean the most to you and begin to carve out more time.
Leisure follows relationships. Now you have time to pursue your hobbies and passions outside of work, like golfing, skiing, or reading. Remember, you got into business to have a better life and if all you do is work….. Business owners have created habits along their journeys to choose work over pleasure, often out of necessity. Don’t fall into the trap of never enjoying time to yourself doing the things outside of work that give you enjoyment.
Health is the fourth level. Physical and mental well-being is crucial for a successful business and life. Remember the saying, “The person with their health has 1,000 dreams, while the person without has only one.” Prioritize your health to maximize your relationships, leisure time, and legacy. If you’re not healthy, it will be hard to lead a healthy business.
Lastly, consider your legacy. Think about what you want to leave behind personally and professionally. How do you want to be remembered? Your business should support the life you want to live, so focus on the legacy you want to create.
Reflect on your position in the Profit Hierarchy. Where do you want to be in one, three, five, or ten years? Write it down, and create action plans to achieve your goals. With the Profit Hierarchy in mind, you’ll build the life and business you’ve always dreamed of. Listen to more about Profit Hierarchy on the Business Owner Breakthrough podcast.
If you’d like a free copy of my 1Page Planner for business owners to get going on the process you can download it here.