Monday, 11 July 2011
Don’t Be A Business Owner Who Does It All!
Some businesses can’t survive without the owners trying to do everything themselves. And they have no key employees to help manage the operations. Buyers for businesses like these may be concerned if they themselves can’t replace the skills and experience of the owner. As a result, these businesses may have very little value to anyone else. Business owners who don’t delegate need to make a strong effort to have experienced key people in place before they ever try to sell their companies.
Business planning can uncover and identify what creates or adds value to your busines, ask yourself the following questions:
· Can the company operate without you for more than a week or two?
· Is there any cross-trained management to fill in if you were gone?
· What is the average age of management?
· Will they retire soon?
· What levels of experience and education do they possess?
· What is the average length of employment amongst staff?
· How difficult would you be to replace?
Once you have built a strong team consider business strategies like incentive compensation plans to recognize, reward and retain high performing employees. Legal protections including non-compete agreements and taking steps to protect proprietary information and trade secrets should be considered. Having a good management team can add value to your business. You will make your business more marketable to buyers and increase the likelihood of a successful transfer.
Do you have small business questions you would like answered about this article or others? Please visit www.VRWindsor.com or call 519-903-7807.
William Sivell is a sales representative of VR Windsor Inc., Business Brokerage; his blog appears every Tuesday.