Well, there are three purposes.
Why would you bother ever going into business without looking clearly at the purposes of being in business?
1. Repay You For Your Investment and Risk
There is no point in going into business if the rewards for doing so are insufficient to repay you for your investment in both time and money, as well as to repay you for your risk.
Otherwise you may as well just keep your job, where you are paid a paycheck for turning up, and you’ve never needed to put your capital at risk or your time and effort into that risk.
A lot of dentists forget this important fact when running their businesses.
They fail to take their business seriously.
They fail to realise the time and money they have invested in getting to where they are, and that if that time and money had been put into another investment, then that investment would be returning a dividend or a rental income.
2. Reward You For Having Owned The Business And Sold The Business
The purpose of being in business is to grow the business and sell that business for a profit.
Along the way, the business needs to provide you with sufficient reward that you can invest to provide for you to retire with a lifestyle worth living.
Some businesses will do this for the entire lifetime of the owner. At other times, a business will only be profitable and viable for a shorter finite period of time, and so the business needs to be looked at as a stepping stone to bigger and better things.
Some business owners enjoy that thrill of the chase, and the movement from one big project to the next, as they sell and buy businesses.
Other business owners look at their business as a career life time choice.
Either way, the purpose of each business is for you to financially profit from owning the business.
3. Provide You With A Lifestyle While Owning The Business
What’s the point of being in business if you have to scrape and scrimp along the whole way?
What sort of a life is that?
The point of being in business in the first place is to reward you along the way for the ownership of that business and what that business provides back to the community, and to allow you to lead a comfortable life along that way, as a reward for your owning the business.
Why would you want to own a business and then go without?
Purely because you owned that business?
To me that makes no sense….
Importantly, having a better lifestyle that you lead allows you to invest into your community purely as a result of having that ability to spend a little more.
4. Provide employment in your community.
One of the benefits of owning a business is that the business then provides employment opportunities for your community, both with jobs within your business as well as in ancillary businesses with whom you do business with.
5. Giving Back.
Owning a profitable business allows you as the business owner to be more philanthropic, and to give back to your community.
If you are owning a business and your business is not ticking all five of these boxes, then you need to evaluate the reasons as to why you are in that business at all…..
My next public speaking presentation showing Dentists how to grow their Dental practices will be in London England on Saturday 4 August 2018 with Jayne Bandy.
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The Ultimate Patient Experience is a simple to build complete Customer Service system in itself that I developed that allowed me to create an extraordinary dental office in an ordinary Sydney suburb. If you’d like to know more, ask me about my free special report.
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