Imagine a business that not only thrives when you’re not around but also continues to generate income like clockwork, allowing you the freedom to pursue your passions. This isn’t just a fantasy – it’s the reality of owning a performing asset. But what exactly is a performing asset, and how can it transform your approach to business ownership? Let’s unravel the mystery and explore the boundless opportunities awaiting savvy entrepreneurs.
What Exactly Constitutes a Performing Asset?
Technically, a performing asset is defined as an asset that provides a consistent annual financial return. However, let’s delve deeper into its meaning. For business owners, a performing asset signifies a venture that operates smoothly and profitably, even in your absence. It’s a business that not only sustains itself but also generates steady revenue and income for you personally. In essence, it’s when your business works for you rather than the other way around.
Surprisingly, many business owners are unfamiliar with the concept of a performing asset or why it is crucial – and not just for their long-term success and goals. With a performing asset, you can start seeing benefits right away. While small at first, as you keep doing the work the return gets better and better. You are actually benefitting long before you have a “complete” performing asset.
In my easily 10,000 conversations with business owners over the years, most initially have no idea what I am referring to when I bring up the value of a performing asset. And that’s perfectly okay. But once they understood the meaning and intent, I think every last one of them were immediately intrigued.
If your business relies heavily on your presence, then you own a job, albeit possibly a well-paying one – but it is not a performing asset (at least, not yet). It’s important to understand the difference between a job that needs you there and a performing asset that operates independently of your constant involvement.
What a Performing Asset Might Look Like
Some business owners want to work. And that is great. Others would rather not regularly show up at the office. And that is great too. Then there is literally every daily-engagement dynamic in between that are also great! The point is that you can have a performing asset and work as much or as little as you like. The key is that whatever approach you choose, you need someone lined up who can do what you do and quickly step in to replace you when you are away, whether that be long-term or short-term.
The following are a few potential ways you might engage with your business while building and maintaining a performing asset.
Scenario 1: You work at your business a traditional eight-hour day, five or six days a week. Maybe you love being there, maybe it’s a grind. Either way, you want to be present most or all the time.
Scenario 2: You exist almost completely outside your business while someone else efficiently and effectively manages it. All the while, the company continues to generate money and you are rewarded with consistent deposits into your bank account.
Scenario 3: You might work a little more some weeks or maybe take regular time off to build a rocket ship or something. The point is, a performing asset allows you the latitude to do what you want, when you want.
You’ve Built Your Business, Now Build Your Life
You see, a performing asset isn’t about how much you work; it’s about how much your business works for you. With a performing asset, you gain the freedom to dictate your work schedule. You can choose to be as active or as passive in the business as you desire. What’s important is that the tasks you continue to perform – usually those you excel at and enjoy – can be easily delegated to others. Yes, the beauty of having a performing asset is that you can take off and do whatever you want, like all that wonderful stuff you included in your personal vision. It’s your life… go live it!
Take the Journey
Designing your business to be a performing asset allows you to live the rich rewarding life you deserve. But it is going to take some effort to get you there. Building your business to be a performing asset will take time, focus, and patience, to name a few things. But the rewards are incredible.
Owning a performing asset is truly the key for business owners who want to attain financial independence and personal fulfillment. By transitioning from being actively involved in the day-to-day operations to having a business that operates without your constant oversight, you are well on your way to a fulfilling life of freedom and prosperity.
Want to learn more about turning your business into a performing asset? Reach out now.
Blair Koch is a Keynote Speaker, the CEO of TAB Denver West, a TAB CEO Advisory Board Facilitator, and a Business Ownership Lifecycle Coach. Blair has spent most of her career helping small business owners achieve their personal and professional goals. She also hosts the Best Businesses in Denver podcast.