For a number of years, I’ve been concentrating on entrepreneurship and building businesses under the philosophy, “look for problems, innovate and sell.” I began focusing on this formula a long time ago, when I knew that I wanted to do more than be pigeon-holed in one field.
I had always wanted a challenge and being an entrepreneur gave me the opportunity to seek out problems and create innovative solutions – but in a variety of environments.
Over the years, I have developed a business model focused on buying a business, restructuring it and then selling it. The model’s proven successful for me because as an entrepreneur I have a trader’s mentality. Some people like a long term build for their entire careers and sell when they retire. That’s never been for me. I buy low and sell high or sell high and buy it back lower. If you watch sports, then you know that even if the game is ugly, a win still counts as a win. In business, a profit is still a profit, and it should be celebrated in the same way.
I haven’t deviated from this formula because I think it is simple and straightforward. My winning formula for entrepreneurship is to identify a common problem, create a unique solution that only YOU have, and then sell that solution for a reasonable price.
As an entrepreneur, your value is being a solutions provider.
To put it more concretely, winning startups are those that can hone in on a problem, one customer, one product, and then solve that problem in their own creative way. The fact is, people don’t buy products — they buy solutions to problems. For an entrepreneur who is beginning a business, the opportunity to focus on one specific problem, and to build the right solution to that problem, is something that must be explored.
Sure, some will question, “Why would they sell their company when it is continuously producing a profit?” There will always be potential buyers who don’t understand why an entrepreneur would sell a profitable business.
To be honest, when a business reaches the peak of its profitability, that is when it’s probably the best time to sell.
Remember, businesses need to constantly grow in order to remain successful, so, when you as a business owner come to the point where you know that growth isn’t going to go any further, you have a choice. You can either sell it to someone who is willing and able to continue to grow the business or you can take a risk of the business plateauing or even failing.
I know for myself, I’m always looking ahead to the next project and I think that’s the mentality many entrepreneurs have. It is in their blood. Selling a profitable business allows them to roll the money into their next venture.
That’s why I like to share my winning formula for entrepreneurship. Seeing other entrepreneurs succeed is reason enough.