It might surprise some people that when looking at business acquisition, 40% of businesses put up for sale are purchased by people with no experience in the industry they’re buying into. So what makes a business attractive to someone who is looking to invest in an unfamiliar industry? It’s a business that works without the owner, and such businesses are 50% more likely to receive an offer and are in a bargaining position to achieve a higher sale price.
That said, taking a well earned break might just be the perfect opportunity to test how well your business runs without you, giving you an invaluable insight as to its saleability. We all need a holiday sometimes and as a business owner I couldn’t think of a better excuse to get away from it all! The better your business fares without you at the helm, the more valuable it will prove to be when you’re ready to sell.
Think for a second what your life would be like if you took off on that dream holiday for a month or more and left everyone working in your business to their own devices. While for some just the thought of doing such a thing might seem daunting, should you bite the bullet you’ll ultimately discover outcomes that will put your mind at ease. For one thing your employees will become resourceful and solve problems they’d usually have asked you about independently .This is a very important sign of progress as it sets the foundation for the kind of successful business system investors can’t get enough of and shows you’re on the right track.
Having said that, while you’re away your inbox will fill up with all the issues that arose in your absence. How you deal with this is crucial, so instead of rushing to find answers to each and every problem, take a step back and look at each issue from a different perspective. Look for a theme in each problem that may suggest either a problem with your team, a breakdown in your business system or a lack of staff empowerment.
“When people show you who they are, believe them the first time”
– Maya Angelou
When going through these issues there are some important questions you should ask yourself about the reason for the issue occurring in the first place:
Why did this problem end up on my desk?
Who else is qualified to answer this question and why was that person not consulted?
If nobody else is qualified, who can be trained to answer this question in the future?
Answering those questions will ensure that the next time you take a break, your business will be running as if you were still there and you’ll no doubt get a sense of confidence that it will always be business as usual
“It’s not hard to make decisions once you know what your values are”
– Roy E. Disney
Now it’s time to look at the procedures and systems that failed during your absence
Did an issue arise that could have easily been dealt with if there was a set of rules or system in place?
The best business systems are embedded into your team through organizational values and training. However, not all problems have a systemic answer, so in your absence your team should be given a set of rules or best practice actions to help them solve the problem and take full responsibility. Taking the time to build such systems will ultimately prove a valuable asset to your business, both while you’re in charge and should you ever want to sell.
“It’s not the tools you have faith in. Tools are just tools — they work or they don’t work. It’s the people you have faith in or not”
– Steve Jobs
It’s well known employee empowerment has the ability to radically transform a business, as organizations that have high employee engagement outperform those without it by 202%. You might have discovered that your inability to delegate tasks is proving to be a major stumbling block. It could be the case that employees are well aware of what needs to be done but lack access to the resources to make it happen, as maybe you’ve made yourself the only one able to access the company’s finances. Here are some suggestions that will improve authorization within your business:
You could put a rule in place to improve customer service that authorises frontline staff to make customers happy in any way possible, provided it’s under $100
You could allow employees to spend a certain amount with a supplier each month without having to authorise the purchase with you first
Taking it a step further, you could give employees an annual budget that they’re allowed to spend without having to get your approval.
Given you’re in for a lengthy review upon your return, that holiday you’ve been dreaming of may now seem even more of an inconvenience. However taking the right approach to your reviewing, covering all bases and getting it right the first time will turn what you spent on that holiday into a worthwhile investment. The business system you’ll put in place will not only give you the freedom to go on many more trips knowing things will run smoothly in your absence, but significantly increase the value of your business.
Does running your own business feel like just another job? It’s time to make the decision to turn your business into a valuable, probitable one that works without you. If you’re ready to make that decision book a chat with Rob Jagger today.