How Long Does It Take to Go Absentee?

By Oliver Wu
March 2007

One of the most frequently asked questions we get is: “How long does it take for me to become an absentee business owner?” This month’s column is dedicated to answering this very question.

“It generally takes 1 year for most business owners to go absentee.”
There are two things that affect how long it will take for you to become an absentee owner: the cash flow of your business, and your personal expenses. If you have high personal expenses, it means you may need to build up your business to the next level before you can go absentee, which means it will take longer for you to become an absentee owner.

In other words, how long it takes for you to go absentee depends on where your business is now, and how much money you need to live on. Does your current cash flow support your personal expenses (after you use part of your cash flow to pay a full-time manager)? If your current cash flow does not support your personal expenses, you’ll either need to build up your cash flow (which will increase the time it takes to go absentee), or reduce your personal expenses (which allows you to go absentee faster).

It generally takes 1 year for most business owners to go absentee. For most people, their business does not generate enough cash flow to support their personal living expenses if they hire a manager. This means they need to increase sales and take their business to the next level, so they can afford to hire a manager. Then, they need to systemize their business so the manager will run the business according to the owner’s system. After that, the owner will be able to go absentee. This process takes about 1 year for most people.

If your business is generating a lot of cash flow (meaning you can afford to hire a manager now), it will speed up the process for you to go absentee. If your personal expenses are low (meaning you don’t have to take the time to build up your business to the next level), it will also speed up the process to go absentee.

Note that when we say it generally takes 1 year, we are referring to businesses that have been established, not startup businesses. For startup businesses, it generally takes 4 years to go absentee, since it takes a while to establish your business to a point where you have consistent sales and cash flow.

This is a big reason that Aaron buys existing businesses and turns them absentee, rather than starts new businesses. It takes too long to turn a startup business into an absentee owner operation, and is often times a lot riskier. Who knows if your startup business will last 4 years? Statistics show that 99% of new startup businesses fail within 10 years.

As the owner of an existing business, give yourself 1 year to become an absentee owner, give or take. Obtain the right support, have realistic expectations, and we are confident that you will reach your goals.

For more information on how you can become the absentee owner of a profitable business, check out our consulting program.

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