Now that the issue of business structure has become a frequent business conversation, it’s important to state that business structure has different phases.
The initial phase of business structure has to do with generally making your business operations more efficient.
The phase that follows has to do with putting your systems and processes to the test by physically exempting yourself for short periods. This is where you hear the question “can your business function without you?” but there is a trick to it.
There are two levels to your business functioning without you. The first is that you are not physically present but you have to do a lot of follow-up via phone calls, emails, chats, etc to ensure things are going well. That is progress, but it’s not the goal.
The next level is that you are actually away from the business and do not need to follow up but the business still functions efficiently. This is the goal of structuring. Getting the business to eventually work for you. It’s at this point you finally cross from being self-employed to being a business owner.
The next phase of structure pertains to getting other signatories to the company account, setting up a functional board, and creating proper corporate governance measures in place. The implication is that if you as the CEO and Founder become bad for the business, the structure can move you aside and keep the business going just fine.
You would have noticed by now that this can’t happen overnight. Business structure is a process that takes years and those who go the full length of it end up with organizations like Nestle, Coca-Cola, UAC, Unilever, etc that last for generations.
You cannot be desiring to build a legacy business and not be deepening your roots in the soil of structure.
Think about it as you stay committed to #DoBusinessBetter