What would you say are the value drivers for your business?
Is your business ready to be sold today? If not, what do you think you need to do to build value in your business?
What can you do today to make your business more valuable?
There is, ultimately, only one reason to create a business of your own, and that is to sell it! You start a business, grow that business, finish the business, and get paid for it.
Have you ever thought about why anyone would want to buy your business? The answer is: Because it works, and it works well without you.
There are four key elements of your business: strategy, people, processes/systems and customers.
In your mind, which do you believe is the most important?
Developing a strategy and, in turn, a strategic plan is the single most important thing that you will do for your business. It defines your business in terms of: What business are you in? Not what you do or your commodity, but what you deliver to your customers. Further, it defines your business in terms of your current and future markets, your competition, your strengths and weaknesses, your personnel, and your structure.
People are a business’s most valuable asset. Give it the investment it deserves. They are a value-added resource for your business that needs to align with your strategy. Make sure employees feel engaged. Make sure they understand the company’s direction and the part they play. Don’t forget key employee “stay put” contracts for a period of time after your death or company sale.
What’s a process? Getting from here to there. How do you see a process? By results, good or bad. What is a system? Elements designed to work together. They provide the vehicle to facilitate predictability giving your customer what he/she wants every single time. What is “system thinking”? A clear track to the end result, it is in writing, accountable by somebody and able to be duplicated by anyone.
Build and maintain a satisfied, loyal customer base. This maximizes the stability of your business. Who is the most important person to your company? The customer. I asked “to” your company, not “in” your company. Who is the most important person in your company to your customer? The person they connect with. You need to manage the “points of connection.” Contact opportunities with customers should be as effective as possible.
Your business value. Realize that you, the business owner, want to be replaceable. You have to create a company with:
- a culture of innovation,
- a brand independent of your persona,
- intellectual property,
- systems for recording/transferring institutional knowledge,
- an empowered management team and
- proven operational systems.
All of which comprises a formula for success that can be replicated without you.
Someone will walk through your door with the intention of buying your business — but only if it works. And only if it works without a lot of work, and without you to work it.
Gordon Parkman is with Achieve Results Consulting, LLC.
