Question: What can I do to increase business value before I sell?
A strategy to increase business value is one of the most important components of a business transition or succession plan. If you’re like most business owners, then there’s probably a lot of room for improvement. The question is: where should you start?
In the majority of cases, making the business less reliant on the business owner is the top priority.
But how can you achieve this? Here are a few tips…
Ensure you have great managers. A great manager doesn’t just hold other team members accountable—they inspire them to be more productive. Make sure that your managers are motivated to stay with the company, even if it is sold.
Create a great mission, vision and values statement to share within your organization. This document will form the foundation of your strategic plan. Communicating this strategic direction will create organizational alignment, providing your team with purpose and helping to foster positive company culture.
Put policies and procedures in place to create consistency. Even tools as simple as work instructions, employee manuals and onboarding procedures can increase the value of your business. You should also build org charts and job descriptions to provide a breakdown of employee roles. This will explain who is accountable for what within the company.
As the business owner, you can only start working on the business once the business is less reliant on you. In Part 2, we’ll discuss a few other objectives that will help you find ways to increase the value of your business.