Part III – Building Business Value Series
September 07, 2016
This month, in Part III of our Building Value Series, we look at business sustainability. This blog series examines the most common business owner issues that may detract from making your business more attractive to potential buyers and how to continue addressing your value gap.
Along the business sustainability path, in addition to recruiting and retaining your workforce, comes additional elements of structuring your business to continue making it attractive to potential buyers specifically, so that it can run without you. According to John Warrillow, author of “Built to Sell: Creating a Business That Can Thrive Without You,” an analysis of 9,779 businesses discovered that structuring your business so that it can run without you increases your chances of attracting an unsolicited offer by 44 percent.1
The human resources function is a significant contributor to your business strategy. It is a core business value driver that makes your business healthy and attractive to potential buyers.
Here are five ways to get your business running on autopilot:
1. Ask employees what they would do – Avoid doing the thinking for them. Encourage them to take the lead in decision-making.
2. The yes-able proposal – Request employees approach you with a well-thought out proposal that can easily be answered with a simple yes or no. Coming to you with proposed solutions versus the age-old question, “What should I do?” will help your team evolve.
3. Give every employee a problem-solving budget – A reasonable, budgeted amount that an employee can spend on an unhappy customer will help them gain the confidence to develop remedies when handling a dissatisfied customer.
4. Automate everything – Keep a diary of all your daily tasks and determine which ones you may be able to automate. Automating recurring bill payments or assigning the task to a trusted employee to sign checks up to a certain dollar amount will take you out of the equation. Sharing software knowledge with a trusted employee or two can also help you let go of the reins and empower them.
5. Create a 2iC – Choose a second-in-command and give them broad powers in your company so they can be your proxy when you’re not in the building.
Consider adding these steps to your company’s sustainability tool box to help boost your business value and free yourself up – whether it’s to reduce your time doing day to day activities or demonstrate to potential buyers this extra value.
Next month, we’ll continue this Building Business Value series by helping you gain an understanding of what drives valuation and buyer expectations. We’ll also look at which conditions are most often connected to people and processes in a company that create and bolster business drivers and, finally, how you can measure the value of your business.
- John Warrillow, Built to Sell: Creating a Business That Can Thrive Without You, 2012.
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