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A few summers ago, I was invited to have dinner with a group of fellow entrepreneurs. From my perspective, they were all running successful businesses. They had teams, and some of them had products that were sold at huge stores like Target.
Over dinner, I mentioned an upcoming five-week trip abroad. One entrepreneur was surprised, asking how I could be away from my business for so long. I was taken aback by her response because, despite her successes, I realized she lacked the autonomy that many folks dream about when they start a business.
It made me wonder: How do so many aspiring business owners start by dreaming of freedom, then end up building themselves another traditional job?
Beware the Golden Cage of Entrepreneurship
This is where many business owners get stuck: We build businesses to support us, but instead of creating freedom, we fall into a new kind of trap. If we aren’t intentional about it, as our business grows, it will demand more and more of our time, and suddenly, we’re caught in golden handcuffs — tied to our business because it’s doing well, but we’re unable to step away. The business is driving us instead of the other way around.
We’re so busy keeping the wheels turning that we don’t have the opportunity to step back, zoom out, and build systems that let the business run without us. If this sounds familiar, don’t worry—you’re not alone. The good news? You can change this.
The mental shift: working on it, not in it
Michael Gerber’s classic book “The E-Myth Revisited” put the idea of working on the business and not in it on the map. In his book, he explains that business owners often fall into three roles: the technician (doing the work), the manager (organizing the work), and the entrepreneur (growing the vision). The problem? Most entrepreneurs get stuck in the technician role. They’re doing all the work, all the time.
When you shift to seeing your business from an entrepreneur’s perspective, instead of asking, “What needs to get done today?” you start asking, “How can I build systems, processes, and a team so I don’t have to do everything myself?”
This is where the magic happens. By creating systems and investing in the right people and technology, you can build something that doesn’t rely on you to function regularly. As a result, you end up creating an asset that generates cash flow and optionality without you having to put forth effort each time.
Why an asset mentality matters
- It gives you freedom. When your business becomes an asset, you gain freedom. Freedom to take a vacation without your business falling apart. Freedom to step back and focus on strategy, creativity, or big-picture decisions. Freedom to spend time on what matters most to you — your family, hobbies, or even a new venture.
- It creates growth. A business that relies solely on you can only grow as far as your time and energy will allow. But your business can grow when you build systems, delegate tasks, and empower a team. Systems don’t get tired. Teams can multiply your efforts. Growth becomes possible because you’re not the bottleneck.
- It builds optionality. An asset is something you can leverage. If you’ve built a business that runs without you, you have options. You can keep it and enjoy the benefits of a business that pays you without consuming all your time. You can hire people to help you run it so you can step away. Or you can sell it to someone else who wants a cash-flowing asset.
Steps to building your business into an asset
- What jobs need to be done? The first thing you need to do is write down every single task or job that needs to be done for your business to function. You can group tasks into categories like operations, sales and marketing, finance and accounting, and service providers.
- Create processes and procedures. Start by creating process documentation for how everything gets done. Write down step-by-step instructions for your most common tasks. When you document your processes, you make it easier to train someone else to do the work, and they don’t need to rely on you for every question they have about tasks. Your systems become the blueprint for your business.
- Delegate and empower. You can’t do it all yourself — and you shouldn’t. Hire people who are smarter, faster, or better at certain tasks than you are. Then, trust folks to do the work, including creating and updating the processes and procedures. This isn’t just about offloading tasks; it’s about empowering others to take ownership, make decisions, and contribute to the growth of your business, including your employees.
- Automate where possible. Technology is your friend. Use tools to automate repetitive tasks like scheduling, invoicing, customer follow-ups, and email marketing. Square Subscriptions, for instance, can also be used to streamline billing and payments. Automation frees up your time to focus on higher-level work that moves the business forward. Start with one thing and go from there.
- Think long-term. Start asking yourself: “If I wanted to step away from this business in five years, what would need to be in place for that to happen?” Use this question as a guide to build systems, hire strategically, and structure your operations with the future in mind.
- Work on your business consistently. Building an asset doesn’t happen overnight. Block out time each week to work on the business. Whether creating a new process, reviewing your operations, or planning for growth, this time is essential for moving toward a business that works for you.
Building an asset instead of a job means embracing contradictions. The hands-on approach that made you successful is exactly what you’ll need to ease your grip in exchange for more autonomy. The sweet spot isn’t to completely remove yourself but to practice intentional involvement. Choose to be hands-on because it fuels your creativity, not because everything would collapse without you. Your business should reflect your vision while giving you room to breathe. They payoff? A business that serves your life, instead of a life that serves your business.
