The Number One Enemy to Building Company Value
If you could benefit from a golden nugget that can help you increase the value of your company, then it’s worth taking five minutes to read this.
What is the number one enemy to building company value? In four words: “Tyranny of the urgent.”
For business owners looking to build company value (and increased profitability), the “urgent” consists of the things that are important and require immediate attention. This includes: filling orders, employee issues, deadlines, proposals, invoicing, receivables, customer requests, payroll, purchasing, etc.
In his book, The Seven Habits of Highly Effective People, Steven Covey points out that the most successful people in the world spend the majority of their time working on “important, non-urgent” things rather than “important, urgent” things. Translated to business ownership: The most effective business owners are the ones who spend more time working “on” the business rather than working “in” the business.
What does working “on” the business consist of? These are the strategic development things that never feel pressing. There are no “hard” deadlines to complete these things. To compound that, there is no level of accountability to achieving these things. If they don’t get done, nobody will really notice until it’s too late.
Here’s a short list of some of the many “important, non-urgent” things that business owners typically put off until tomorrow:
• Strategic Planning to set targets (goals) and determine specifically how to achieve those goals along with benchmarks and key performance indicators to help stay on track.
• Leadership Development to prepare emerging leaders take on additional responsibilities which ultimately will allow the company to thrive whether the owner is there or not.
• Training / Cross-Training to get new hires up to speed more quickly and effectively while also adding depth of knowledge and abilities to existing team members.
• Exploring Different Growth Strategies (sales and/or profit growth) so that the company continues an upward trend.
• Creation of a Written Systems Manual that creates a cookie-cutter model for running operations most efficiently and profitably.
• Improving / Updating Selling Strategies to more effectively grow sales and increase the return-on-investment in salespeople.
• Improving / Updating Marketing Plans to be sure the marketing message is fresh and relevant and ensuring marketing initiatives are producing favorable returns.
• Employee Reviews and Growth Plans to continually field a team of fully engaged employees who are constantly growing in skills and capabilities.
These “non-urgent, important” strategic development initiatives can have a dramatically favorable impact on a company’s profitability and value. Furthermore, these initiatives foster an environment of excellence that attract and retain talented team members who are capable of running the day-to-day operations of the company while the owner is freed up to do other things (inside or outside of the business).
If you are a business owner, think back to the day you decided to start, buy, or take over the reins of your company. Were you hoping to build a profitable, valuable company that would allow you to have total control over your own time? Were you excited about creating a company full of energetic, positive people who were a joy to be around? Was your plan to become independently wealthy while building a valuable company you could sell for a premium someday? What was your vision for your company and for your own life?
Once you consider those things, ask yourself one more important question: “How am I doing on these things?”
It is likely you have gaps between where you are and where you’d hoped to be at this point in your company’s existence. You’ve done a lot of things correctly, for sure. That’s why you’re still in business when many (if not most) of the companies that started when you did have long since gone out of business.
But what about those gaps? Are you going to settle and accept them? Or are you looking for an idea to help you close those gaps and realize your vision?
If the latter, here’s a tip: Hire a professional business coach to help you get focused and stay focused on doing the next right things to consistently move you toward your vision.
A professional business coach will help you (1) get clarity of the most important objectives you want to meet, (2) facilitate you gaining clarity of the most important strategy to begin your intentional and regimented journey toward your objective, (3) help you identify all of the things that need to happen (tactics) for that important strategy to be fully implemented, (4) invite you to take specific action on the priority tactics, and (5) provide a forum of accountability to help you stay focused on doing the things you must do in order to reach your goals.
A business coach will help you continuously work “intentionally” and “strategically” on meeting your goals and having your business work for you, rather than the other way around. Think of a business coach as a “personal trainer” to help you develop your business.
The best athletes in the world all have coaches. The best performers have coaches. The most established company CEOs have coaches. Success leaves clues!
Your email will be forwarded to a Certified Professional Business Coach near you. The coach will contact you directly by phone or by email (your preference) to find out more about you and what you’re looking to achieve. This is with no obligation and no expectation. It’s all about you.
Please send the email now before you forget about this and get caught back in the weeds of your business. This is too important to put off another day.