Happy Backwards Day?
Did you know, today is national backward day. This is a day that provides us with the opportunity to reverse our ways or do the opposite. Look how well things changed for George Costanza when he decided to do the opposite. As Jerry said, "If every instinct you have is wrong, then the opposite would have to be right".
So, what does this have to do with anything? Well let me tell you.
Sometimes you need to look at your business differently. Especially if you are trying to maximize the value of your business. This is not only good for your current profits, and the strength of your business, but it also prepares you to sell your business someday at a premium. Here are a few ways to increase the value of your business:
Turn your business sideways and look for new metrics. Think about your profitability per hour/widget. Then think about how to improve
Build a strong team that aims for constant improvement and can operate without your involvement
This, by far, is the most important. This team will help you do all the value enhancement activities
A strong team that doesn’t need you all the time is perfect for when you want to sell your business someday. A business that runs without the owner has more value to the buyer.
Evaluate your pricing model at least once per year
Understand your competition, market, customers, and costs
Build a repeatable pricing review process
Look for ways to build a well-oiled machine by removing waste, inefficiencies, and redundancies
Walk through your entire client life cycle
Look through your P&L expenses and start with the biggest.
Payroll is typically one of the largest expenses. Work with your management team to create an environment for self-driven and self-motivated employees.
And to get started, maybe have breakfast for dinner tonight.