how to automate your business

How to automate your business…..

“How to automate your business?” is a question so many entrepreneurs ask. Particularly when they’re limited on time, or just too lazy to put in the effort. The idea of owning a 24/7 cash flow machine that never stops funneling money into your bank account can be downright intoxicating. I have spent a lot of time, money, and learning trying to figure out some ways of accomplishing this myself. Unfortunately, most people who say they have a system for doing so almost never do. But there actually are legitimate ways to automate your business, or at least acquire other passive income systems that truly do create passive income. how to automate your business

Phases of automation……

In our training curriculum, we teach our people that wealth is built in 3 parts. The first part is the Startup. This phase is about making as much money as quickly as possible. And it usually isn’t passive (At least not totally.)
For example, real estate investors will put a lot of time and effort running wholesaling and property flipping businesses. Great efforts have to be put into marketing and networking in order to find scenarios where properties can be bought at significant discounts. More time and effort has to be put into due diligence, negotiations, and project management. It’s an active business but there are few other business models where somebody can go from making minimum wage to making hundreds of thousands of dollars in a year.

For example, real estate investors will put a lot of time and effort running wholesaling and property flipping businesses. Great efforts have to be put into marketing and networking in order to find scenarios where properties can be bought at significant discounts. More time and effort has to be put into due diligence, negotiations, and project management. It’s an active business but there are few other business models where somebody can go from making minimum wage to making hundreds of thousands of dollars in a year.
Most successful entrepreneurs go through a development phase where they are extremely occupied with the operation of their business. Way more hours are required compared to the average job, and many times the pay is far less. But the phase is necessary in order to start the first phase of automation…..relationship development.

Most successful entrepreneurs go through a development phase where they are extremely occupied with the operation of their business. Way more hours are required compared to the average job, and many times the pay is far less. But the phase is necessary in order to start the first phase of automation…..relationship development.

The Relationship Phase

The second phase is relationship development. Relationships are probably the most essential component of transition from a manually operated business to an automated one. The reason being is that relationships create lead pipelines.
What this translates to is the one man show transitioning from always working to find business, to now conducting business, and making consistent profit. Once profits start coming in, paying for costs, and stockpiling as free cash, the business can then start affording more man power to operate components of the business…..known a delegation.

What this translates to is the one man show transitioning from always working to find business, to now conducting business, and making consistent profit. Once profits start coming in, paying for costs, and stockpiling as free cash, the business can then start affording more man power to operate components of the business…..known a delegation.

The Delegation Phase

Delegation is the next crucial step to building an automated business. Not only does it further free the entrepreneur up to focus on what they love. But it also allows the entrepreneur to afford the talent for certain tasks that the entrepreneur may not be gifted with. Once this happens, the business can start to truly outperform. Marketing becomes more effective and more targeted. Responding and communicating with clients becomes more efficient. Systems work more effectively. Costs become more efficient in relation to revenue. All because you have the right people in the right places doing what they’re the best at. This brings you to your final phase…….the Ownership Phase.

The Ownership Phase

You already have relationships and eventually branding working for your business. You have specialists effectively manning all the essential components of your business. And you are the captain. However you’re still not truly automated. You’re still the captain of the ship. Everyone still defers to you for the big decisions. You’re still monitoring your business for consistency and places where adjustments need to be made. It’s still a full time job. So you have one more job to delegate…..you have to hire a captain to replace you.

The captain should be better than you, and they should understand the missions, values, and long term vision of your business. Once you have them in place, congratulations! You now OWN a fully automated business! Your only new job is to make sure your investment is performing as a whole. And you’ll know that by the financial progress your business is making. Much as you would any business you buy.

Notice What I Didn’t Talk About…..

I didn’t go off on a tangent about opt in pages, auto responders, auto posters, bots, etc. There’s a reason why…..

In this age of automation, most businesses still tend to be more scalable through the use of human capital. The market is largely fed up with cold, impersonal, automated systems. Most of us hate using automated systems when we call, when we need answers, or when we need to resolve issues. Customers often fear falling between the cracks. They can often feel overwhelmed and discarded when they can’t get assistance customized to their needs.

In my opinion you leave a lot of money on the table when you lose clients t bad business practices. I’m not against automation. But if you plan to use those tools, again you want to make sure you delegate the right experts to operate those systems better than you can, and provide additional support when a rigid system isn’t meeting a specific need for some of your clients.

 

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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