How do I get rich running a business?

Hi Aunty,

I have started my own business and guess what? Firstly, I lost my personal banker, which is crazy because I am earning a higher salary now than I was when I had a job. Secondly, people either think I’m loaded and can pay for stuff, or that I have no money, no status or am “in-between jobs”.

Anyway, that’s not why I am writing, although I find it reeeeally annoying. I want to know how I get rich running my own business. I don’t want to be sitting around in 10 years slaving away, doing what I am doing now, even though I am earning more than I was. I want to have my house paid off, the school kids’ fees paid, a nice place in the Blue Mountains and the chance to travel to incredible places with my wife.

How do I do that?

Gluey Dreaming
Sydney

 
Dear Gluey Dreaming,

Firstly, don’t worry because one day that bank will be back at your door, begging for your patronage, so relish that happy future memory!

But for now here is what to do. Become obsessed with your competitors in the market. Not just local, but global. And don’t say you haven’t got any, you great tosser. That would defeat the purpose. Because what you are planning to do is work out which piece of the puzzle is missing for one of your competitors.

Does a major player want geographic expansion and you have an office and market share in a one place which is the logical next step in their expansion? Do you have a kick-arse product that your competitor needs in their stable? Are you just years ahead and a lot better than your dopey competitor and have stolen audience that they want back? Have you worked out the future while your competitors are trying to escape their past?

Figure out who is going to buy you, then build your company for strategic sale. At the right time, go out and hold an auction.

But a warning, or two.

A focus on strategic sale can sometimes not be compatible with the best decisions for sustainable business growth, which in the end might be better for long-term wealth creation. Secondly, what happens when you get your dream? I’ll tell you what. You will have a great six months swanning around the world and then you will start to feel vaguely restless and empty. Meanwhile, your brain has been sifting through all the opportunities that have presented themselves and suddenly one will emerge as the next big thing and before you know it you are sitting on a beach writing a business plan. So make sure you make enough from the sale of the business to put aside a little investment fund to seed your next business.

Be smart,
Your Aunty B