I was recently given a gift of Gerber's book on audio CD, called the E-Myth which is a must read for SME owners. Normally I hate this kind of gift as I cannot stand the ra-ra antics of motivational speakers.
This one is not a motivational speaker. Yes there is a bit of the ra-ra, but there is a lot of good information here. This is someone who talks about the realities of SMEs. This is someone who I agree with, and whose book so far has been really great.
He says that the sole reason for starting or buying a business, is so that you can sell it! Now this is something I have said for a long time and having done 30+businesses since 1982, lived it. I have written on this topic before, and stand by what I have said. You create more wealth through business sales than through drawing a salary from the business. In South Africa, even with the new capital gains tax, it is still the case. I am sure in your country much the same situation exists. Do the numbers people. Prove to yourself whether there is more money in selling your business regularly or not?!
Rob Smorfitt
Showing posts with label serial. Show all posts
Showing posts with label serial. Show all posts
Thursday, June 5, 2008
SMEs - benefits of portfolio entrepreneurship (3/2007)
What is portfolio entrepreneurship? Portfolio entrepreneurship normally follows on from serial entrepreneurship. Ideally this should be something all entrepreneurs do, but seldom is.
A serial entrepreneur is someone who buys and / or starts a business, and then moves on and sells it, and then repeats the process. However, a portfolio entrepreneur, as the next stage, owns multiple businesses at the same time.
A portfolio entrepreneur requires a fair amount of skill to juggle these different requirements on his or her time. It is not a simple process and ideally, to start with, the entrepreneur should ensure that the two businesses are in the same industry, as this will allow the entrepreneur to then gain the necessary skills in managing two businesses simultaneously.
Key success factors here are partners and delegation. Failure to do take partners, and more importantly the delegation of duties, will surely lead to business failure, and quite likely a nervous breakdown. There are always exceptions ot the rule, but ideally you need someone to do the work. At this level you should be focused on strategy and possibly top level sales.
I personally love the sales part, and therefore focus on strategy and sales. Work to your strengths.Give it a try. It is fun and challenging. It is exciting and as you begin to diversify it is incredibly stimulating. Just remember the cash flow consequences or you can lose it all.
Rob Smorfitt
A serial entrepreneur is someone who buys and / or starts a business, and then moves on and sells it, and then repeats the process. However, a portfolio entrepreneur, as the next stage, owns multiple businesses at the same time.
A portfolio entrepreneur requires a fair amount of skill to juggle these different requirements on his or her time. It is not a simple process and ideally, to start with, the entrepreneur should ensure that the two businesses are in the same industry, as this will allow the entrepreneur to then gain the necessary skills in managing two businesses simultaneously.
Key success factors here are partners and delegation. Failure to do take partners, and more importantly the delegation of duties, will surely lead to business failure, and quite likely a nervous breakdown. There are always exceptions ot the rule, but ideally you need someone to do the work. At this level you should be focused on strategy and possibly top level sales.
I personally love the sales part, and therefore focus on strategy and sales. Work to your strengths.Give it a try. It is fun and challenging. It is exciting and as you begin to diversify it is incredibly stimulating. Just remember the cash flow consequences or you can lose it all.
Rob Smorfitt
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