Building value in your company is a challenge. If it were easy then everyone would do it and everyone would be successful. The fact is that very few businesses actually build value. I think this happens because building value requires hard work. It also requires being systematic and it requires discipline, which is something that many businesses lack.
Here are some ideas that you might want to think about if one of your goals is to create value in your business.
Step 1, Admit your company has some issues.
This will take a little soul searching for you. I want to let you in on a secret: Your company has some issues. Probably your company has lots of issues. I want you ask yourself a question, “What are the issues my company has?”
Don’t stop at answering the question above. Take it a step further and ask yourself why your company has these issues. Then take it even another step further and write down what you’re doing to do about it. If you plan to do nothing that’s OK, but make sure you write down that you’re going to do nothing.
One of the cool things about owning your own business is that you get to decide how you want to handle things that happen in your business. If you know you have a problem that you don’t want to handle, just admit it and move on. It might impact value later on and that’s your decision.
Step 2, “Get the right people in the right seat” - Jim Collins
It’s really hard to work on issues and make them better if you don’t have good people. A good person doesn’t mean having to pay a lot of money. It means being very clear on who those good people are, what are their traits and knowing how these people can help you work on the issues your company has.
Sometimes the right people can be rented. I’m a big fan of using rent a C services. Sometimes it’s rent a CFO (chief financial officer), sometimes it’s rent a CMO (chief marketing officer) and sometimes it might even be rent a CEO (chief executive officer). When you rent a senior person in your company you get great talent for a cut-rate price. You don’t have to have them work full time for you and it makes great talent affordable.
Sometimes you need full-time help and sometimes it’s part-time help that you can rent. I think many private business owners don’t get the right talent because they think the answer always is full time employees and the ones with high skill are just too expensive to hire on a full time basis. Think about part-time or renting great talent.
Step 3, Understand the concept of a big rock.
If you figure out you have lots of issues in your company, choose one. Start with the issue that is the easiest to fix and has the biggest value for your company. I call this low hanging fruit.
Here’s the important part: Choose one, not three, and not even two. Choose one, concentrate on it, make it an issue that’s in the past, and then choose another one. If you focus on one big rock at a time you will probably move faster than if you try to do several projects at once. You only have so much time to spend on strategic projects. Choose wisely and choose narrowly. You’ll likely have more success.
Do you think you’re willing to start? Do you think the three steps will help make your business better? I do.
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