Create your customer

Peter Drucker said: “The purpose of business is to create a customer”.

And then a whole industry blossomed from this determination.

As a business owner – Actually I think I should start referring to business owners as retirement vehicle drivers.

Anyway, as I was saying… Business owners in a helicopter view have a different purpose, I believe.

The purpose of the business owner is to look after himself selfishly. He can do this by selflessly looking after aspects of his business to improve it as a target for acquisition.

Let me unpack that:

1. Just as the business makes its services and products as attractive as possible to its customers,
2. so are businesses made attractive to acquirers,
3. so that when several businesses are for sale, the most attractive business will get the better attention.
4. When there is more than one buyer interested in one business the potential acquirers become more honest and competitive,
5. the price goes up,
6. the business owner hops into the driving seat.
7.  To set this situation up, there are parts of the business which need to be ship-shape.
8. That takes sometimes uncomfortable action, as opposed to comfortable inaction.
9. The result is a winning one for the business owner retirement vehicle driver.

For a long time I have preached that is important to know what your business’ value is. Let me fine tune that slightly for drivers who are still on the road, nowhere near an exit. It is more important to know what gives your business value, than to know its actual value.

Will this decision add to the value of my business? This question, regardless of what the current value is should be at the forefront of every driver’s business decisions, every day.

This might help.