Increase Your Business Value With the Right Management Team
When a customer asks you about the price of something you sell, you'll know the answer- probably in your sleep.
But what if someone wants to know how much your business is worth?
Cue awkward silence. 😳
If you don’t know for sure, you’re not alone. Few business owners know the market value of their company offhand. They may venture an estimate based on the sales prices of similar businesses, but the figure is usually way off the mark, which can be a problem.
Knowing the value of your company is essential for three reasons:
It guides growth. Your business’s value tells you how well it’s growing. Think of it as a temperature check for your company’s overall health. 🌡️
It informs your planning. Without knowing what your business is worth, it’s difficult to plan for the future. If you sell, will you have enough money for retirement and all the exciting things you want to do?
It gives you time to adjust. When you know what your company is worth, it is easier to determine when it will reach its full potential.
You created a company that filled a void in the marketplace, so major fist bump! 👊 But building its value is not something you can really do alone. You need a team of like-minded people who can make it even more amazing.
Build Your Management Team
Building a solid management team is essential for growth in a competitive market. Not only is it a top driver of business value, it can also grow the company, reduce risk, and provide transferable benefits to a new owner (translated: more 💰to fund your next big adventure).
The following tips will help you build a management team with the right combination of personalities, abilities, and experience.
Create a Hiring Scorecard. Use a numerical scoring system to compare candidates easily. If you talk to a lot of applicants, these cards can facilitate recall.
Make Your Expectations Clear. If you have a headhunting firm or any of your staff doing preliminary interviews, make sure that they understand your expectations, so that the most qualified candidates make the final cut.
Hire Based on Ability. Don’t be swayed by an impressive resume or an Ivy League school diploma. Identify and look for personality traits, skills, and experience relevant to the job role.
When you score a management team you can trust, you’re golden! Don’t be surprised if the company grows in new and exciting ways. If your goal is to have a business that stands the test of time, trust me- the right management team can make it happen.
At Business and Beyond, our mission is to help business owners like you set yourselves up for success. Whether you need advice on recruitment strategies or recommendations for taking your team to the next level, we can start you on the right path and keep you there. To learn more or schedule a consultation, call 954.546.2176.