Income or Business Freedom: What Are You Really Building?
- Homy
- 2 days ago
- 3 min read
A strategic perspective for business owners rethinking what they’re really building
Most business owners chase revenue. Some chase profit. Very few stop to ask the question that changes everything:
“Am I building an income stream… or an asset that gives me freedom?”
This distinction shapes how valuable your business becomes, how much leverage you have, and how much control you retain over your life.
A simple thought experiment makes the distinction obvious.
A Tale of Two Choices
Imagine two scenarios:
Scenario A — A £3M Asset That Pays You
You own a £3 million property in London.
It generates £150K rent per year. After fees and maintenance, you clear about £115K.
It appreciates roughly £90K per year.
Total benefit: £205K per year + ownership of a £3M asset.
Time required: a few hours per year.
Scenario B — A £250K Corporate Job
You earn a high salary, but:
You work 50–60 hours a week.
Your income stops if you stop.
You have no assets under the income.
You’re paid more… but you’re less free.
Because the truth is simple:
The owner of the £3M asset can choose to work or not. The job holder cannot choose freedom without losing their income.
This pattern shows up in business ownership too.
Income vs Freedom in Business Ownership
Every week I see two owners with similar revenue and similar profit — yet radically different levels of freedom.
Business A — The Freedom Asset
Business value: £3M
Dividends: £150K
Runs without the owner
Owner may choose to work in the business
Can be sold or retained
Business B — The High-Income Trap
Business value: £1M
Owner extraction: £300K
Owner must be there daily
All decisions flow through the owner
The business isn’t sellable at its true potential
Most owners believe they’re building Business A — but unintentionally build Business B:
a demanding job with a nicer title.
A Real Example: When Income Disguises Itself as Value
I once advised two founders expecting a £15–20M exit.
They received offers of £4–5M.
Not because the business lacked profit — but because it couldn’t run without them.
Every relationship.
Every sale.
Every key decision.
All tied to the founders.
They had built Business B — income without freedom.
They weren’t selling a business.
They were selling their jobs — and buyers weren’t willing to pay a premium.
If your business relies on you, then buyers aren’t buying a business. They’re buying your job — and most won’t pay a premium for that.
They didn't build systems. They didn't develop leaders. They built their jobs!
The Four Pillars of a Freedom-Generating Business
This is at the heart of the Business Freedom Framework:
1. Strategic Clarity: A business with a clear direction to grow, built around systems, not heroics or personality. And a clarity of what will NOT be done!
2. Sales Growth Systems: Revenue generated through a repeatable, owner-independent process.
3. Leadership & Team: A leadership bench that can run the business without you.
4. Exit & Succession Readiness: Understanding what buyers value — and creating those conditions long before you ever plan to sell.
These four pillars increase valuation, reduce risk, and expand your personal freedom.
But they serve an even bigger purpose.
You Can’t Plan Your Exit Without Planning Your Life
The purpose of a business is not just income.
It’s not just growth.
It’s not even the eventual exit.
The purpose is freedom — the ability to choose:
to work or not work
to expand or step back
to sell or simply enjoy passive income
to pursue the next chapter on your own terms
Freedom doesn’t appear at the exit event.
It is built — deliberately — through the structure of your business.
The Questions Every Owner Should Sit With
Stop for a moment and ask yourself:
Could your business run for three months without you? (Do you want it to?)
Are you building something that a buyer wants — or something only you can run?
Are you optimising for income, or for optionality?
And most importantly: What is your freedom point? (The level of asset value that allows you to live the life you want.)
If these questions feel uncomfortable, good — that’s where clarity begins.
If this resonates
This article is adapted from my book Exit Before You Exit — a practical guide for founders who want to build businesses that serve their lives, not consume them.
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