Value Realized - Page 3

We began the conversation last week with the merging of E-Myth Benchmark and Henderson Business Group. The relationship between our two organizations began several years ago, as two companies serving similar clients in similar marketplaces, with completely different but complimentary services. We held joint seminars in several cities in the Midwest, and it was during these seminars, and successful transitions of clients designing and growing their businesses through one organization, then selling it through the other, that a real synergy began to develop. E-Myth Benchmark has always believed and coached to the principals of Michael Gerber's E-Myth Revisited, including the core belief that your business should be a vehicle to give you more life, not take the life out of you. More “life” is the simple expression of more satisfaction, more money, more time, more freedom. It is the dream that business owners start out with, but struggle to realize.

As a fellow business owner, you know what it's like to watch your business grow from a kernel of an idea into a living and breathing reality. Like us, you've experienced the ups and downs of owning a business, but also know how rewarding it is to watch your vision in action.   Our newsletters typically focus on challenging the way you think about your business and providing you with easy to implement ideas and best practices. This month we're planning to get a bit more personal as we talk about our personal journey in re-imagining our business.

Enjoy this quick video introducing our newly imagined company, then read more to understand our journey. 

We have talked about the harsh reality of having a business of value and discussed what markets and buyers look for in a business of value. The next logical step is to discover what needs to be in place so your business, as it continues to mature, achieves steady growth, healthy cash flow, and the systemization that creates a business of real value. You could do an internet search and find any number of websites or individuals that can tell you how to create value in a business. The truth is, there is no one way to get it done but there are certain factors in a business of value that are consistent. This week we focus on three factors: Professional Advisors, Coaching, and Action.

Last week we talked about how many business owners bury their heads in the sand when it comes to placing a value on their business. This week we focus on where the 'sweat equity' can make a positive difference in the valuation of your business.The markets and buyers of the world are as diverse as the businesses. This leaves each market and buyer with its own set of criteria and perspective of what value look like. Taking into account those diverse perspectives, this week we look at three core attributes that nearly all buyers are interested in paying top dollar to obtain: Growth, Cash Flow, and Systemization.

You've built your business with a great deal of hard work, dedication, money, sacrifice, and plain old pig-headed determination. You are really good at what you do, and your business is known for the quality it provides. You have dozens, hundreds, maybe thousands of loyal customers who sing your praises and continue to buy your goods or use your services. You have loyal employees who have been with you for many, many years; and the business has given you and your family a decent living, in spite of some "ups and downs" over the years. You are now getting closer to the "reality of your mortality", the fact that eventually a transition is going to happen, voluntary or involuntary. But as Michael Gerber, best-selling author of the E-Myth books says, "The only sane reason to own a business is to sell it."

Most people take this time of year to talk about resolutions and planning. You know, the weight you’re going to lose, the new business you will bring in, the weight you’re going to lose, upgrading your business facilities, the weight you’re going to lose, and so on. In the context of your business, planning is usually all about revenues and profits, staff, equipment needs, and even how you as the business owner are intending to use your time more efficiently.  What about you?  Aren’t you one of your business’ most important assets?  Isn’t it important to your business, let alone yourself and your family, to maintain your health and your sanity?  Did you not go into business in part to create more freedom and a more enjoyable life?  How is that working?

This is a not-so-subtle reminder to plan for your time off. Plan some short days. Make plans for a vacation later in the year. Take the time you need to put your work/life balance back in order. Encourage your staff to do the same and they will thank you for it.

Have you ever wondered what your business is worth?  I don’t mean what you would like to get for it; I mean the amount someone would actually pay you for it.  Do you know what conditions or attributes make your business more valuable?  How about those that make it less valuable?  As best-selling E-Myth series author Michael Gerber said, “The only sane reason to own a business is to sell it”.  It might be tomorrow or 20 years from now, but creating a highly valuable and saleable business is, after all, one of the principal goals of business ownership. Not only that, it’s an activity that begins the day you open for business and never stops!