MANAGEMENT • 4 MIN READ

Guide to Building Businesses That Run Themselves

Are You Stuck Working “IN” Your Business?

In today’s fast-paced world, businesses that run themselves are gaining popularity among entrepreneurs. A self running business is a company that can operate without constant oversight or micromanagement from its owner. Such businesses are built on systems, processes, and automation that allow them to function efficiently and effectively without constant supervision.

Throughout this article, we will discuss the importance of creating a self sustaining business, benefits of starting one, and steps to create businesses that run themselves.

Why It's Important

Creating a self sustaining business is crucial for entrepreneurs who want to scale their business. According to a study by the Small Business Administration, only about one-third of small businesses survive past ten years. One of the reasons for this high failure rate is that many entrepreneurs fail to create a sustainable business model that can survive beyond their personal involvement.

A business that runs itself frees up the entrepreneur’s time and resources, allowing them to focus on other aspects of their life or start new ventures. It also creates a more stable and secure business that can survive economic downturns or other unexpected events.

Benefits of Businesses that Run Themselves

More Time and Freedom

Having a self running business frees up time and provides the freedom to pursue other interests or start new ventures. Entrepreneurs can use this extra time to spend with family and friends, travel, or focus on other areas of their lives. In addition, having more time can also lead to greater creativity and innovation in their business ventures.

Increased Efficiency

Self sustaining businesses operate more efficiently since they rely on systems and processes, allowing for consistent quality and productivity. By automating tasks and processes, businesses can streamline operations and reduce the risk of errors.

This can lead to increased customer satisfaction and loyalty, as well as improved profitability. For example, an analysis by McKinsey & Company found that companies that automate their processes can achieve productivity gains of 20-30%.

Reduced Costs

By automating tasks and processes, self sustaining businesses can reduce operating expenses associated with staffing, training, and management. In addition, having efficient systems and processes can lead to cost savings in other areas of the business, such as supply chain management and inventory control.

Scalability

Self sustaining businesses can be scaled easily, making them attractive to investors and potential buyers. By having strong systems and processes in place, businesses can quickly and efficiently expand their operations to meet demand. This can lead to increased revenue and profitability, as well as greater market share.

For example, Airbnb is a self sustaining business that has been able to scale quickly due to its efficient booking system and user-friendly platform. As of 2021, the company had over 4 million listings in 220 countries and had facilitated over 800 million guest arrivals since its launch.

Better Work-Life Balance

By creating a business that runs itself, entrepreneurs can achieve a better work-life balance, which can lead to greater happiness and well-being. According to a study by Gallup, employees who have a good work-life balance are more engaged, productive, and less likely to experience burnout.

By having a business that operates efficiently without constant oversight, entrepreneurs can focus on other areas of their lives, such as their health, relationships, and personal development.

5 Self Sustaining Business Ideas to Help You Scale Better

Creating a self running business requires a deliberate and systematic approach. Here are some self sustaining business ideas that entrepreneurs can use to create a business that runs itself:

#1. Develop a Clear Business Plan

Before taking any action, entrepreneurs need to develop a clear and comprehensive business plan. This plan should include a long-term vision, specific goals and objectives, and a roadmap for achieving them. A well-designed business plan helps entrepreneurs stay focused, prioritize tasks, and measure progress towards their goals.

For example, a business plan should include a marketing strategy outlining how entrepreneurs plan to reach their target customers, a financial plan to achieve their fiscal goals, and a staffing plan to build an effective team.

#2. Implement Systems and Processes

To create low maintenance businesses, entrepreneurs need to implement systems and processes that can run efficiently and effectively without constant oversight. These systems may include software tools, automated workflows, and standardized operating procedures.

By streamlining operations and minimizing manual intervention, entrepreneurs can free up their time and energy to focus on strategic planning and growth.

#3. Build a Strong Team

A self running business requires a strong and capable team that can take on significant responsibilities and contribute to the success of the company. Entrepreneurs need to recruit and train employees who are reliable, skilled, and aligned with the company’s values and goals.

By empowering employees to take ownership of their work and providing them with opportunities for growth and development, entrepreneurs can create a culture of accountability and continuous improvement.

#4. Foster a Culture of Innovation

To stay ahead of the competition and continue to grow, entrepreneurs need to foster a culture of innovation within their company. This involves encouraging employees to think creatively, take calculated risks, and identify new opportunities for growth and improvement.

Entrepreneurs can achieve this by rewarding experimentation, providing resources for research and development, and creating a safe space for employees to share their ideas and feedback.

#5. Leverage Technology

Technology can be a powerful tool for creating a self sustaining business. Entrepreneurs need to stay up-to-date with the latest software tools, automation platforms, and communication technologies that can help streamline operations, improve customer experiences, and increase efficiency.

By leveraging technology effectively, entrepreneurs can automate repetitive tasks, reduce human error, and scale their businesses more effectively.

Business Challenges

Creating businesses that run themselves can present a number of challenges for entrepreneurs, including:

Ongoing investment in technology and training:

Implementing and maintaining systems and technology can be expensive, and training employees to use them effectively requires ongoing investment.

Entrepreneurs can overcome this challenge by developing a long-term strategy for technology and training, prioritizing investments based on their impact on efficiency, productivity, and customer satisfaction.

Risk of losing control and accountability:

Delegating responsibilities to employees can result in a loss of control and accountability, which can be a challenge for entrepreneurs.

To address this challenge, entrepreneurs can implement performance metrics and accountability measures, ensuring that employees understand their roles and responsibilities and are held to a high standard of performance.

Potential for complacency among employees:

Some businesses may have limited scalability due to the nature of their products or services.

Entrepreneurs can overcome this challenge by diversifying their offerings or exploring new markets to expand their customer base. According to a report by the US Small Business Administration, businesses that export their products or services have higher revenue and job growth than those that do not.

Low Maintenance Businesses Made Easy with 2X

Entrepreneurs can also work with business coaches or mentors, such as those offered by 2X, to gain insights and guidance from experienced professionals who can help them navigate these challenges.

2X is a leading business coaching company that provides support to CEOs, entrepreneurs, and industry experts looking to grow and scale their businesses. They offer a growing community of successful business leaders and a variety of resources, including the book From 6 to 7 Figures, which can be particularly helpful in creating a business that run themselves.

By working with 2X, entrepreneurs can gain valuable insights, receive guidance from experienced professionals, and connect with other successful business leaders.

Running Businesses That Run Themselves Can Be Tough

In conclusion, creating businesses that run themselves can be challenging, but the benefits of doing so are significant. A business that runs itself allows entrepreneurs to focus on strategic planning and long-term growth, while empowering employees to take on greater responsibility and contribute to the success of the company.

By following the steps outlined above and leveraging the resources and guidance offered by 2X, entrepreneurs can build successful, scalable businesses that can continue to grow and thrive.