Last week we challenged you to think about the design of your business and answer the question: Have you intentionally designed your business to achieve "Value Realized?" This week we're challenging you to think about double vision. Running a business isn't easy. You already have a lot on your plate and we're asking you to find a way to redesign your business. This requires you to have double vision.
Value Realized - Page 2
Why do you own a business? At Benchmark Business Group we believe in, "Value Realized." Owning a business should allow you the day to day freedom to live the life you desire. In the begining that might mean eliminating frustrations from your business. As your business grows it means providing you with financial freedom and freedom of time to pursue passions outside of business. Then as your business matures it means being able to sell your business at maximum value so that your investment of time and money pays off. Below are a collection of articles on "Value Realized" from our weekly Business Owner Insights.
This month we've been focusing on how to build a business of value. A business that gives you more time, more money and more freedom in day-to-day operations is a business that will sell for a premium when the time comes. Last week we looked at the first four drivers that will help you increase the value of your business: Financial Growth, Growth Potential, Recurring Revenue and the Switzerland Structure. This week we'll take a look at the remaining four drivers which are: Monopoly Control, Customer Satisfaction, Valuation Teeter-Totter, and Hub & Spoke.
This month we've discussed the importance of defining the value you want to realize from your business and how to generate a baseline of your business today. In the next two weeks we're going to continue to look at building a business of value from two perspectives: if you're looking to sell your business soon (within two years) and if you're looking to build a business of value to sell or transition later in your life.
If you accepted our challenge last week, you should have a clear idea of what Value Realized means to you. While making a list may not seem like you've achieved much, having a clear understanding of what you want your business to do for you is the first step in designing a business of value.
We've often quoted Michael Gerber's famous words that the only reason to own a business is to sell it! Of course it isn't as simple as opening a business one day and selling it for huge profits the next day. Owning a small business is a journey towards that destination, a journey of being the problem solver day in and day out, of being the worrier, and being the one ultimately responsible for all outcomes.
As 2015 draws to a close, we want to take a moment to thank you for all your hard work. Owning a small business can be tough, but it can also be very rewarding. Small business ownership can enable you to realize extraordinary value. Our days are dedicated to working with business owners and leaders to design the results that enable them to achieve their goals and realize their dreams. Through intentional thought and action our clients craft a business that reflect their values and realizes their vision.
We believe you should be connected to the passion, hope, dreams and desires you had when you became a business owner; to be inspired every day to achieve your vision! Take a few minutes to reflect and recall what you hoped to achieve through owning a small business.
What is the point of owning your own business? How you answer that question will definitely depend on your personal desires, but in reality it boils down to one thing: Value. You own a business to realize value.
When you hear business owners talk about growing their business, they are usually referring to increasing revenue and profits. The conversation immediately goes to growing their sales force, adding new clients, increasing their market share, and so on. More often than not, it is about doing more and more of what got the business owner where they are, which in one way is fine. On the other hand, it likely does not take into account those characteristics that will lead to maximum return when it is time to sell or transition out of the business. More often than not, the business remains highly dependent on its owner or certain key people, has co-mingled business and personal finances, the “processes” of the business are more accurately described as “habits” than systems, and there is no clear “strategy” for growth beyond the capabilities of “doing more of what we’ve always done.”