Defining Your Business Legacy: What Purpose Does Your Business Serve?
I’ve been speaking with business owners about how they can and should achieve eight-figure profitable growth. That is, take your multimillion dollar business and work on it, so that it is at least $10 million of annual profitable revenues. Or, if you are already at that figure to put another 8-figures on top of it.
Why? Because business owners that are running eight-figure businesses have much more latitude, they have many more options and they can be much happier in their business.
But let me ask you a very basic question?
What would you like your business to achieve?
In other words, what is your business legacy?
We all hear about:
- how we want to protect our family members in, or, who count on the business.
- we want a meritocracy so that people in it who are doing their best are rewarded.
- then there are also issues around how are we are going to help our society?
what kind of legacy are we going to leave?
- finally, and simply, how are we going to create wealth?
These are basic questions that you really need to clarify and understand.
Why? Because if you want to create a profitable business that’s one thing. If you want your family to be protected it’s another, and if you want to do social good that’s also something that has to go into the equation.
So, in the link below is a tool for you to start to think through how you want to define your business legacy. Getting to eight figures is going to help no matter what, but if you can study these in the privacy of your own office, I think you’re going to be far closer to figuring out what your business should achieve and therefore assuring you make your own legacy happen.
You are probably wondering, what does this all mean?
To review, in the first exercise, you defined your goals in terms of:
- family vs. meritocracy and
- wealth vs. legacy
In addition, you learned that two of the four directions are more important to you as you lead your firm.
Now, in Part 2 (What Purpose Does Your Business Serve? PART 2 DOWNLOAD LINK HERE) you’ll notice a name for each of the four quadrants.
If you are:
- Owner/Family and Wealth-driven, you are Dynastic.
- Owner/Family and Legacy-Driven, you are a Patriarchal firm.
- Wealth & Meritocracy firm, you are Value-Driven.
- Meritocracy and Legacy-driven you are a Social Entrepreneur.
Look at the definitions of each of the four quadrants and consider your quadrant. Does it define what you believe? Can it help you think through how you want to guide the destiny of your firm or focus the actions of your staff?
Pursuing all four quadrants equally is not a strategy.
By seeing which quadrant best defines your goals and your firm, you can start to take some clear steps:
If you are focused on:
▪ Family and Wealth you are working to create a Dynasty and build the wealth of your family. You should invest heavily in your next generation based on the ROI for your business.
▪ Family and Legacy you are taking the approach of a Matriarch or a Patriarch. You will make decisions based on your love for your kin and your intention to carry forward the company in your name.
▪ Meritocracy and Wealth you are working to create the most Value-Driven company you can regardless of your family. You should invest heavily in the best talent that will generate the highest ROI for your business.
▪ Meritocracy and Legacy you are taking the approach of a Social Entrepreneur. Your decisions will be based on how you can do the most good for your community by working with the best and brightest you can hire.
To summarize, how can you align your firm to meet your mission? Start by having an honest conversation with yourself and decide what success means to you and your vision of your firm. Once you can define which one of the four driving values best reflect your vision, you can move forward. Now, you have the basis for making the hard choices amongst the conflicting agendas that you are faced with and you are running your business your way.
Have questions or thoughts how to do this? Contact me at (412) 973-2080 or firstname.lastname@example.org.
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