194 - Why You Should Treat Your Business Like an Asset
Today on the podcast I'm diving into why you should treat your business like an asset.
According to Investopedia, an asset is anything of value or a resource of value that can be converted into cash. Essentially, it's anything that you can sell or something you can hold on to build wealth.
Treating your business like an asset is like raising a child. You need to put in a certain amount of time nurturing the business, just like you would a child. When your business is an infant, it needs constant care and attention. This is usually when you are running the business solely on your own. As the business grows, we often bring in more people to help us nurture it, the same way we bring in teachers and caretakers for our children. It takes a village. The end goal is to build a business that can leave the nest and flourish without us. And sure the business may need to call home to ask you to schedule their dentist appointment or drop some wisdom and you can spoil your business with your time, attention, and resources as much as you'd like, even when it's an adult.
Even if you love spending 12 hours a day on your business and it's your full passion, you may not feel that way in 20 years. You may want more time to spend travelling or with your family or doing something else. Just because we're not ready to do something does not mean we don't need to learn about it. It helps us envision it for the future. If you wait until you need a business that runs without you, it will be too late. You need to start building the systems now.
I recently asked my Facebook group, Braden's Besties, what it means to say "treat your business as an asset." I got a variety of responses, from "hire a team" to "intellectual property protection." which includes trademarks, copyrights, etc.
Trademarks are an asset that a business owns and owning a trademark increases the value of the business. Other assets include proper systems to pay ourselves which mean good profit, savings systems, paying down debt, and reaching retirement account goals.