Doug and I, co-owners of our ActionCOACH Firm here in Miami have been helping business owners in South Florida grow their businesses, free up their time and build better teams for the last 15 years. We have been particularly active during the Corona virus pandemic, gifting coaching sessions and free webinars to 100’s of business owners. Here we outline some of our New Year’s Re-Solutions for all business owners looking to maximize their company value in 2021. To your success!
1 STOP CHASING TOP LINE REVENUE
Many business owners fall into the trap of focusing on top line revenue however maximizing income is not a sure path to success, especially if it comes at too great a cost. It’s much more important to be efficient (#LEAN #Principles) and build healthy profit margins than it is to focus on building revenue.
2 START SURVEYING YOUR CUSTOMERS
True insight into your business comes through the eyes of your customers, it’s their opinion that is the crucial opinion. The Net Promoter Score methodology is a fast and easy way to collect feedback, which you can then use to identify and strengthen your weaker areas. Better still, it’s also a good predictor of your company’s growth in the future.
3 SELL LESS STUFF TO MORE PEOPLE
When a company offers too many products and services not only will you find it close to impossible to manage, your customers can be overwhelmed by having to choose. Some of the most valuable businesses in the world achieved their success by identifying their niche and conquering it.
4 DROP THE PRODUCTS OR SERVICES THAT DEPEND ON YOU
You can’t build a valuable business by offering a range of products and services that are too reliant on you to deliver them. Not only does this bind your growth potential to your finite amount of time and resources, but your operation must be able to succeed without you for it to be of value to potential investors or buyers. It sounds like a bold move but cutting things that require you to produce or sell them can actually set you free.
5 COLLECT MORE MONEY UP FRONT
Income makes all of what we do possible, yet most business owners are shy about talking money with customers. By asking for payment up front you can turn a negative cash flow cycle into a positive one, lessen your stress load and boost your business’s value.
6 CREATE MORE RECURRING REVENUE
Another great way to boost cash flow and create a more predictable revenue stream is to offer goods and services on a subscription or recurring contract basis. Less stress for you, your customers appreciates the clarity, and overall, you build a more valuable business over the long run.
7 BE DIFFERENT
If you’re not different enough from the competition, there’s no reason your customers shouldn’t buy from them instead. Once you’ve identified what makes you unique, use it in your marketing and be relentless in highlighting this advantage.
8 FIND A BACKUP SUPPLIER FOR YOUR MOST CRITICAL RAW MATERIALS
We’re living in a world where long-term plans are out of the window, and we don’t know which challenge is coming around the corner. With this in mind, it’s best to have back-up plans in place should any of your key suppliers fail. Consider placing a small order to establish a commercial relationship and diversify the sources of your most-difficult-to-find materials. Don’t risk another organization’s shortcoming becoming your downfall.
9 CREATE AN INSTRUCTION MANUAL
As I’ve highlighted before, your business shouldn’t be limited by your own ability to invest time and energy. You can create more free time, reduce stress and unlock the potential of your business by documenting your most important processes and enabling your employees to do their work independently.
10 TEACH YOUR EMPLOYEES TO FISH
Now go one step further. Empower employees to realize their potential by cultivating a team full of individuals who think like owners. Encourage them to answer their own questions without coming to you. Start by asking them: “What would you do if you owned the business?”