Blog: 5 Ways to Get your Business to Thrive Without You
Some business owners emphasize maximizing profits, while others concentrate on achieving sales targets. Have you ever contemplated prioritizing the establishment of your business in a way that enables it to flourish and expand independently of your direct involvement?
Possessing a business that operates seamlessly without relying on its owner is the ultimate asset. This autonomy affords you complete control over your time, allowing you to choose the projects you engage in and the vacations you take.
When it comes to exiting, a business that is liberated from its owner holds significantly more value than one that is owner-dependent. Consider these five strategies to configure your business for sustained success without your constant presence:
- Foster a Sense of Ownership: Embrace the principles laid out by Jack Stack, author of “The Great Game of Business” and “A Stake in The Outcome.” Establishing an ownership culture entails transparency about financial results and empowering employees to share in the company’s financial success. This cultivates a workforce that operates with a sense of ownership even in your absence.
- Encourage Empathy: If sharing financial details seems daunting, adopt a management technique where you respond to staff inquiries with a consistent question: “If you owned the company, what would you do?” This prompts employees to think like owners, enabling them to address challenges independently.
- Evaluate Your Offerings: Identify products and services that necessitate your direct involvement in production, delivery, or sales. Score each offering on a scale of 0 to 10 based on how easily employees can be trained to handle them. Commit to discontinuing the least teachable offerings, ensuring your involvement is focused on high-impact areas. Repeat this process quarterly.
- Establish Recurring Revenue: If you serve as your company’s primary salesperson, relinquish this role by creating a recurring revenue model. Consider implementing service contracts that fulfill customers’ ongoing needs automatically, freeing you from the role of rainmaker.
- Document Operating Procedures: Ensure your company is equipped with clear instructions by creating an employee manual or Standard Operating Procedures (SOPs). These guidelines provide a framework for repetitive tasks, allowing employees to operate efficiently in your absence and facilitating smooth transitions when employees change roles.
Protecting your business from reliance on your constant presence yields substantial benefits. It enables you to build a valuable company while enjoying a balanced life. Your business gains the flexibility to scale up independently, no longer constrained by your involvement as the bottleneck. Ultimately, this autonomy enhances its value for potential buyers when the time comes to sell.
Curious to explore this topic more in depth? Reach out to Beth Renga at beth.renga@hfco.com