Benchmark Business Group

Are You Driving Down Your Business Value?

August 20, 2019

If your business is reliant on you for the day-to-day operations, prepare to get less money when you go to sell it.

Do a quick self-check; how often do you say phrases like:

  • I just can’t get away
  • My employees can’t make a decision without me
  • My customers only want to talk to me
  • I feel like I’m always catching up
  • There’s too much to do

If you are a Hub & Spoke owner – one who is at the hub of all activity – you are responsible for driving down the value of your business. Consider this: Buyers don’t want to purchase a job. If a buyer has to hire your replacement, it will reduce their profits, thereby reducing the value of your business.

Ask yourself this question:
How would my business perform if I were unexpectedly unable to work for three months?

Which would be your answer? 
1. Hardly suffer at all
2. Suffer a little, but survive
3. Suffer a lot, but survive
4. Suffer a lot, and not survive

If you answered number one, hardly suffer at all, then a seller is much more likely to pay a premium for your business. The less dependent your business is on you, the more value it has to a buyer.

Hub and Spoke is one of the 8 Drivers of Business Value. You can find out how your business scores in all eight drivers of value by taking a quick, confidential 15 minute assessment. Take the time today to get your Value Builder Score and identify what you can do to start increasing the value of your business.

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