Just as McDonald's founder Ray Kroc went to work "on" the business and not "in" the restaurant, he had another stroke of brilliance. He realized he had to attract two very different sets of customers to build McDonald's. While he obviously knew McDonald's had to attract people looking for a quick, inexpensive meal, he also had to attract another type of customer. People with a desire to own and operate their own small business.

Kroc sold burgers and fries to one type of customer and a business opportunity to the other. In the world of selling burgers and fries, the competition is other establishments that serve burgers and fries. In the world of selling business opportunities, the competition is any other type of small business venture someone could buy, from a printing shop to a clothing store to a dry cleaning business.

So What Does This Have To Do With You and Your Restaurant?
The point, is that no matter what type of restaurant you own and whatever you plan on doing with it at the moment, you really have two sets of customers. The customers that buy your food and beverages and the customer who will eventually buy your restaurant.

Why Would Anyone Want to Buy Your Restaurant?
People may have different reasons for purchasing a restaurant but it's probably safe to assume that making money is fairly high on the list. An independent restaurant that is highly profitable would probably attract more interested buyers and bring a higher price than a marginally profitable one.

Other factors like growth and profit potential as well as the value of the assets may also be considered but basically, the more profitable an existing business is the more it's likely to be worth to a potential buyer.

In addition to profitability, another major factor when purchasing an independent restaurant is the impact the current owner has on the daily functioning of the business. How easy or difficult is it going to be for someone else, like a new owner, to perform those functions and get the same kind of results? If the success of a restaurant is perceived as being highly dependent on the active involvement and unique abilities of the owner, the less marketable and valuable the business is likely to be to someone else.

This is where many restaurant owners who work in the restaurant performing the functions of the general manager or the chef often come up short. Interested buyers, upon closer examination, determine that the ongoing success of the restaurant has a great deal to do with the owner's presence, their hands-on involvement. Maintaining the same level of success without the owner around may seem highly unlikely or at least a risky proposition.

Your Business Isn't Worth As Much If The Restaurant Depends on You
If your restaurant depends on you being there grinding it out, day after day, your business isn't worth as much and you probably don't have much of a life either (at least outside of working in the restaurant). You might think that's just the way it is being an independent restaurant operator, but maybe it doesn't have to be that way. We're convinced it doesn't.

You Are Not Your Restaurant
Unfortunately many operators get so personally tied up in their restaurant, it's difficult to tell where one ends and the other begins. Remember you, your life and your family are what really matters most. The restaurant, your business, is really just the "means" of providing you and your family with what you need to live the life you want. That may be a value judgment, but we believe that looking at your business as a distinct entity, and not as an extension of yourself gives you a shot at not only having a life but dramatically improves the odds you will have a more successful business too.

If you see yourself separate from your restaurant, it's not only healthier but it also helps you understand the importance of building a business "that doesn't depend on you being there all the time."

Building a Business That's Not Dependent on You
In the following article we'll discuss an approach that will give you more freedom and enable you to build a much more valuable business. It's an approach that will make it easier to expand, franchise or sell your restaurant too.

You'll also want to continue with the series of articles in this section entitled, "There's Got To Be An Easier Way To Do This" by Bill Marvin. Bill's insights can help you become an expert at dealing with people. By improving your understanding of people you'll see how it's possible to build an organization where teamwork, high productivity and low turnover is the norm.