Is your business too owner-centric? 6 tips…

Institute-for-Owner-Success-logo-largeThe Institute for Owner Success launched the educational seminar series Business Value Drivers to Long-Term Generational Wealth series. The first seminar in the series explored

6 concrete strategies to help businesses avoid the consequences of being too owner-centric

If your business cannot function smoothly while you are away for an extended period of time, the value is greatly diminished – both now and to potential buyers in the future.

The most effective business leadership focuses on including management and employees in goals, implementation and decision-making. Test to see if your business is too owner-centric by taking an extended vacation and seeing how your employees, business and customers respond.

Tips business owners can, and should, implement NOW…

  1. Document your standard procedures and processes step-by-step and train your employees to these instructions.
    • Key employees should assist in this documentation, which also encourages consensus.
    • Allowing employees to be self-directed by following written procedures builds a positive, proactive culture.
  1. Delegate responsibilities to an individual(s) with decision-making authority – empower a second-in-command.
    • Companies with an owner who calls all the shots are not as attractive or valuable to potential buyers.
  1. Get your team involved in running the business by the numbers.
    • Someone in addition to the owner needs to know the company’s most important goals and targets…and to understand how to help achieve those results.
    • Don’t worry … assigning responsibility for key metrics is not full transparency. Nobody needs to know salaries or other confidential information.
    • The deeper into the company, the more “operational” and less “financial” these numbers become.
  1. Establish a “cadence of accountability” around the key metrics.
    • Regularly and routinely check the score during the month. Once the month has ended, it’s too late – you can’t change history!
    • Use scoreboards to keep each department’s targets and results front of mind.
  1. Don’t let denial spoil your legacy – embrace succession planning.
    • Advanced planning guarantees that you have employees on hand, ready and waiting to fill new roles when you are ready to sell the business.
    • Take advantage of the time between the announcement and the acceptance of the job so new leadership can address as many needs as possible prior to your exit.
  1. Prepare for retirement like you would for a new career.
    • Develop a strategy – do you want to work fewer hours, try a new career or business, learn new skills and further your education, give back through volunteering…?
    • Determine the best way to manage your time.  Take charge of your schedule; become time conscious. Even in retirement, you will want to get the most out of each day.

The experts of the Institute for Owner success are available for individual consulting: info@instituteforownersuccess.com.

Success is a Process, Not a Destination… Navigate Intelligently with the Guidance of Experienced Partners

Founders of the Institute for Owner Success

Bill Collier, Shawna Lyonfields, Dave Driscoll

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