One of the core principles of creating a more valuable business is ensuring it can run without you by getting managers to think like owners. The theory goes that empowered employees are the best positioned to solve your company’s thorniest issues, as they are the ones closest to the problems. In theory, people feel more like they are part of a bigger cause and this has the … [Read more...] about The Downside of Being Up-Front with Employees
Improving Company Value
If you have resolved to make your company more valuable in 2017, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a single-digit multiple of your Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA). If you have a recurring … [Read more...] about Will this be the year you seriously drive up the value of your company?
Making your business less dependent on you has a number of benefits: you can scale your company more quickly if you’re not acting as a bottleneck; you get more time to enjoy life outside of your business; and a business less dependent on its owner is much more valuable to an acquirer. Pulling yourself out of the day-to-day operations of your business is easier said than … [Read more...] about You-Proofing Your Business