There are many drivers that go into creating value for your business.\u00a0 If you are looking to sell your business at some point in time, you need to view the business through the lens that a buyer would see it.\u00a0 When you do this you look to remove all the risk from the business.\u00a0 The less risk in the business the higher the multiple used to determine the sale price.<\/p>\n
One of these drivers is the leadership and management team in place.\u00a0 When a buyer looks at your business they will look at it without you at the helm.\u00a0 So you need to start with a job description for yourself.\u00a0 Being an owner is not a job description.<\/p>\n
Start by detailing out exactly what you do, how much time you spend doing it, then look around you and determine who else in the organization can do what you do.\u00a0 If there is no one, then consider adding staff.\u00a0 You need to be able to go away for a couple of months at a time and not have the business skip a beat.\u00a0 Then it would be ready for a sale.<\/p>\n
One of the traits I often see in business owners is the need to control all the decisions.\u00a0 This occurs even when they try to delegate. \u00a0The problem surfaces when you delegate authority to a staff member and then an employee goes around this person and comes directly to you.\u00a0 What do you do?\u00a0 If you solve the problem then you have removed the authority from whom you delegated it to.\u00a0 If you send it back then you go a long way to creating an environment and a culture of delegation and empowerment.<\/p>\n
What is the strength of your leadership or management team?\u00a0 Are their responsibilities clearly laid out?\u00a0 I like to put a job description into 4 distinct categories; Role; Responsibility; Authority; Accountability.\u00a0 If you had jobs laid out in this manner it is real clear what needs to be done by everyone.<\/p>\n
In a value creation model having a strong culture, clearly defined missions, visions and values, that are enforced, goes a long way to removing risk and increasing the multiple used to value your business.<\/p>\n","protected":false},"excerpt":{"rendered":"
There are many drivers that go into creating value for your business.\u00a0 If you are looking to sell your business at some point in time, you need to view the business through the lens that a buyer would see it.\u00a0 When you do this you look to remove all the risk from the business.\u00a0 The…<\/p>\n","protected":false},"author":27,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","cybocfi_hide_featured_image":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-2847","post","type-post","status-publish","format-standard","hentry","category-other"],"acf":[],"yoast_head":"\n