Where is Your Value? Is It In You Or In Your Business? / by Kerri
Do you know where the value is in your business right now? Is the value in you, the owner/entrepreneur? Or is the value truly in the business itself?
This is the uncomfortable wakeup call for most entrepreneurs. Are the expertise and the business strategy all in your head, and in your proprietary files? Here’s the risk:
You have nothing to sell and
you have no exit options
if this is still true.
Instead, you can and should start now to:
- train others on different pieces,
- outsource different pieces, or
- start delegating more and more.
Start now because it takes time to transfer knowledge, expertise, systems and processes, nevermind responsibilities, to others. In some cases, you’ll know exactly what to delegate and who should be doing tasks instead of you. Sometimes you already know who should take on responsibilities or who is ready to step up to take on more responsibility. When you start early, you can train and groom people to grow into positions and responsibility – which ties them to the business more. Both add value to the business when you want to get out.
When you outsource, you have the flexibility to divide up work piecemeal and try different vendors and sources to get work done. When you start early, you can find those vendors who fit your needs and adapt well to suit your corporate culture and become an extension of your team, again adding value. And if a vendor is not an asset when you are trying to maximize value for a potential buyer, you have time to find and train the replacement within your timeline.
When you offload operational responsibilities, you can focus on leadership and strategy to make the business more valuable now and for a future buyer.
The side benefit of delegating, outsourcing and automating is that you free up time to work on your most valuable activities including your exit strategy to achieve your ultimate goal.
“Business owners do not plan to fail.
But 95% fail to plan. Don’t be one of them.”