As a small business coach and consultant, I have been surprised to find that many small business owners don't really focus on increasing the value of their company. Instead they are mired in the day-to-day activities (working in their business) or just trying to survive rather than working on growth (working ON their business). This is a big mistake because they are the ones who will also be upset when they have significant difficulties trying to hire employees, obtain financing, and/or sell their business.
My favorite quote is "Failing to Plan is Planning to Fail." If you to not have plans to grow the value of your business, it is unlikely that you will be successful and probably won't make it very long. Plus, it will become a frustrating experience since you will most likely have cash flow issues. The key to successful planning is starting with the end in mind. My Mom used to always say that "If you don't know where you are going, any road will get you there." You could end up anywhere without a road map or plan.
As a business owner or organizational leader your most important responsibility is to grow the company by focusing on bringing money in (sales and marketing). However, you must also focus on the bottom line to ensure profitability. The value of your business is directly related to your sales and profitability levels and growth rates, with profitability having the greatest impact on your business valuation.
One reason small businesses do not plan to increase the value of their business is because they don't know how to do it. I help entrepreneurs understand their business model and be more strategic. We assess where they are and envision the future of their business more clearly. From there we work on growing revenues, increasing profitability, and obtaining the financing needed to achieve their goals.
"Built to sell" a best seller by John Warrillow is a great book for explaining what it takes to maximize the value of your business. In the book he outlines the 8 most important drivers to focus on in order to maximize the value of your business. He also created the Value Builder Program for working with business owners to increase the value of their business as much as possible. Over the years it has been proven successful in significantly increase the value of businesses and make them more salable.
I am excited that we can now offer this program to our clients through both Small Business Like A Pro and A&J Management. I am partnered with Gene Boheski, of Archer service who is a
He is the Featured Guest Speaker at my upcoming POWER BREAKFAST on May 4th @ =Space in Gateway Center #2 in Newark, NJ. His topic will be "Maximizing the Value of Your Business." He will be sharing perspectives from his experience working with clients using the Value Builder Program. Here are first three drivers from the Value Builder Program methodology that he will outline during his remarks...
1) Financial Performance
2) Growth Potential
3) The Switzerland Structure
You'll have to join us on May 4th to learn the other five. I look forward to seeing you there. However, we also post a video of his entire talk on the Small Business Like A Pro website within a week after the event if you cannot make it. Make sure to register before this weekend to take advantage of advance ticket pricing. Also, you may want to participate in the full day conference activities throughout the day.