With a recovering economy now in play, business owners might want to look into the future. That future will include some type of exit strategy-one that is either planned for, or one that is put upon them by circumstances.
Those plans should include specific strategies that increase the value of their businesses, providing future options such as selling the business, transferring to family members, or merging with or acquiring other businesses.
A recent article in Time magazine indicated that only a small percentage of small to medium sized businesses will be able to be sold for a value desired by the owners.
In the book Why the Bottom Line Isn’t by Dave Ulrich, he writes that business leaders can create market value through people and organizational capabilities. Ulrich encourages companies to do an intangibles audit, which diagnose the extent to which a business possesses the capabilities or intangibles to deliver financial goals and increase company value.
Recent studies are showing that as many as 50% of American workers do not like their jobs. Every business owner should be asking some very crucial questions about their businesses.
Are our employees lined up with what needs to be done in our business?
Do our employees have the motivation to develop the skills needed to serve the objectives of our business?
Is our workforce engaged in the day to day activities that will create value for our business?
Creating business value is a series of continuous processes. The beginning step is assessing the organizational and financial strengths and weaknesses of a company. The ongoing commitment is to have short term goals aligned with the business’ mission, assure that the people possess the skills to accomplish those goals, and create an engaged workforce.
A capable team of employees aligned with the goals of the business can adapt to the changing demands of the marketplace. An engaged workforce can focus on specific strategies and tactics that increase the value of that company.