"5 Simple Ways To Get Your Business To Run Without You"
Some owners focus on growing their profits, while others are obsessed with sales goals. Have you ever considered making it your primary goal to set up your business so that it can thrive and grow without you?
A business not dependent on its owner is the ultimate asset to own. (re-read that a few times)
It allows you complete control over your time so that you can choose the projects you get involved in and the vacations you take. When it comes to getting out, a business independent of its owner is worth a lot more than an owner-dependent company.
Business acquirers seek to invest in business systems and processes. They have no desire to buy a job, let alone the two or three different full time jobs many small business owners work within their own business.
These operators do not own their own business. Their business owns them.
The good news is there are several ways to set up your business so that it can succeed without you.
Here are five:
1. Give Them A Stake In The Outcome
Jack Stack, the author of The Great Game of Business and A Stake In The Outcome wrote the book on creating an ownership culture inside your company: you are transparent about your financial results and you allow employees to participate in your financial success. This results in employees who act like owners when you’re not around.
2. Get Them To Walk In Your Shoes
If you’re not quite comfortable opening up the books to your employees, consider a simple management technique where you respond to every question your staff bring you with the same answer, “If you owned the company, what would you do?” By forcing your employees to walk in your shoes, you get them thinking about their question as you would and it builds the habit of starting to think like an owner. Pretty soon, employees are able to solve their own problems.
3. Vet Your Offerings
Identify the products and services which require your personal involvement in either making, delivering or selling them. Make a list of everything you sell and score each on a scale of 0 to 10 on how easy they are to teach an employee to handle. Assign a 10 to offerings that are easy to teach employees and give a lower score to anything that requires your personal attention. Commit to stopping to sell the lowest scoring product or service on your list. Repeat this exercise every quarter.
4. Create Automatic Customers
Are you the company’s best salesperson? If so, you’ll need to fire yourself as your company’s rainmaker in order to get it to run without you. One way to do this is to create a recurring revenue business model where customers buy from you automatically. Consider creating a service contract with your customers that offers to fulfill one of their ongoing needs on a regular basis.
5. Write An Instruction Manual For Your Business
Finally, make sure your company comes with instructions included. Write an employee manual or what MBA-types called Standard Operating Procedures (SOPs). These are a set of rules employees can follow for repetitive tasks in your company. This will ensure employees have a rulebook they can follow when you’re not around, and, when an employee leaves, you can quickly swap them out with a replacement to take on duties of the job.
"You-proofing" your business has enormous benefits.
It will allow you to create a company and have a life. Your business will be free to scale up because it is no longer dependent on you, its bottleneck. Best of all, it will be worth a lot more to a buyer whenever you are ready to sell.
Another name for this type of independence is called the Hub & Spoke model, which is an indicator of how your business would perform if you were unexpectedly unable to work for a period of three months, or more.
Hub & Spoke is one of 8 key drivers of company value discovered in a detailed research analysis of more than 30,000 businesses, as part of the renowned Value Builder System,
The report revealed a startling fact: Companies that achieve a Value Builder Score of 80+ out of a possible 100 receive offers to buy their business that are 71% higher than what the average company receives.
From the Value Builder Questionnaire, after a Score is generated, business owners can access a comprehensive Assessment report detailing each of the 8 drivers’ specific effect on company value and sellability, allowing the business owner to pinpoint opportunities of “low-hanging fruit” for optimization.
DID YOU KNOW
The Quality Of Your Lifestyle & The Value Of Your Company Have One Major Thing In Common:
They Are Both Dramatically (Negatively) Affected By Your Business' Dependence On You.
Fortunately, there's a proven methodology for systematically eliminating your company's dependence upon you, which automatically and dramatically increases the value and "sellability" of your business (a huge benefit even if you have no plans to sell)...
...and also enhances the quality of your lifestyle and level of personal freedom by transforming your company into a self-managing income-producing asset that can thrive without you.
It's called The Value Builder System - which starts with a 17-minute Questionnaire & Score
Companies that score 80+ (out of 100) are valued 71% higher than the average scoring business.