When business owners are getting ready to “exit their business,” via retirement or selling, they have to come up with an estimate of what their company is worth. In general, they have a tendency to overshoot the value, realizing it’s not worth as much as they thought.
The result is that owners are forced to directly work in their business longer, in order to increase the value of it. If they neglect to do so, they may experience issues trying to maintain their current financial lifestyle.
Fortunately, there are tools available to help you make a more accurate estimate of what your business is actually worth, and have the opportunity to plan accordingly. One tool that Keye Strategies trusts is the Value Builder System. It consists of a 13-minute questionnaire that calculates a value for company from a scale of 1-100.
Based on quantitative data gathered from over 30,000 companies, businesses that achieve a score of 80 or more are predicted to receive offers for their business that are 71% than the average business.
You’ll begin by entering your contact information, including your name and the name of your business. This allows the Value Builder System to provide you with information and services that may help you increase the value of your business.
Next is a series of questions about the state of your business. Are you in decline or growing? Do you sell an easily accessible commodity or an exclusive product? What is your relationship with your customer base? All of these questions, and more, will help determine just what your business is worth.
Finally, you’ll share some information about how far into the process of selling you are. If you’ve already received an offer of intent to buy the business, you’ll share that with the tool, which can influence your score further.
If you’re thinking about exiting your business, Keye Strategies has services and resources to make the best of this big decision. Check out our eBook on maximizing business value, or find out more about transition coaching.
You exist. But why? It’s not just a question for philosophers. For your business, it’s the most crucial and practical question. Your long-term success and satisfaction depend on answering it well. A business development strategy will help you achieve clarity about your firm’s unique purpose.
But change in direction can also come from within.
You’ve changed since you created your business plan. You’ve learned from experience. Maybe you’ve begun to refine your sense of purpose. Or you’ve realized you have particular strengths and weaknesses. Maybe you have new ideas or passions.
Or, amidst the tyranny of the urgent, your sense of purpose may have simply grown foggy. Do ever find your motivation sagging? Are you just not sure what’s next?
Your sense of purpose can change for many reasons. Most likely, though, it’s not exactly what it was when you started.
McKeown tells the story of Nancy Duarte, the owner of an agency that produced a range of communications material for corporations. As a generalist agency, little distinguished her firm from others.
McKeown writes, “Then Nancy read Jim Collins’s Good to Great, in which he contends if there’s one thing you are passionate about–and that you can be best at–you should do just that one thing. That’s when she realized the real opportunity to differentiate the company might be in the very type of work nobody else in the industry wanted to do: designing presentations.”
A clear sense of purpose renews your drive, keeps you going through obstacles, and brings satisfaction. It’s vital to long-term success.
But clarifying your purpose takes work. It requires reflection, analysis, and asking hard questions. For most business owners, finding the right conversation partners is essential.
A strategic business advisor can help you find yourself on the map, and then help you identify your destination. The right advisor has the experience, perspective, and proven processes to help you achieve the clarity you need to “achieve something truly excellent.”
Then, you can map the best route. The next post will address the final question a business development strategy answers: “How will you get there?” Answering this question gives you confidence to execute and achieve your purpose.
Find out more about how Julie Keyes has helped business owners like you clarify their purpose and move confidently toward the right goals. [/fusion_text][/one_full]
There are more young entrepreneurs than ever before. With advances in advertising and marketing, it’s easier to make a presence online without spending major funds to do so. It should come as no surprise that the time is right to own your own business. Most young entrepreneurs already know that there’s more to being a great business leader than having interpersonal skills, but it can be difficult to pinpoint exactly what those entrepreneurial traits are. Read on to find out more about what makes a great entrepreneur and how a business advisor can assist in the development of those skills:
1. A Keen Eye for Detail
It’s important for a young entrepreneur to keep their eyes on the big prize, but there can’t be enough said for always making sure that you pay attention to the little things. Write a thank you letter to a client for choosing your company or send flowers to an ill co worker’s mother. Maintaining a sense of duty to those around you and keeping up with the small details can make a huge impact. Having a keen eye for details means always having a sense of empathy. What would you expect of others if you were in their shoes?
2. Sense of Humor
In a world full of pressure and stress, being able to laugh at yourself is one of the best ways to keep your head above water. It can also help boost morale in times of struggle, which means rebounding even stronger when the bad times are over.
3. Unquenchable Curiosity
The best entrepreneurs never lose their sense of wonder for the field that they’re in. Whether it’s attending conferences or reading the latest self-help resources for business owners, you have to be willing to stay on top of the market, even if it’s deciding that the newest trends aren’t right for your business. A willingness to put the time and energy into being a lifelong learner can be developed through one-on-ones with your business advisor.
Perhaps the most difficult entrepreneurial trait to learn is passion for your field. It may seem hard to believe that anyone would open a business in a market that they’re no passionate about, but it certainly happens. Don’t fall into that trap. Without passion, you’re just going through the motions.
5. Remaining Humble
Sometimes, it’s best if you’re not the smartest person in the room. Recognizing that you have a lot to learn from the people around you is one of the best ways to continue to grow in your field. It’s impossible to become the perfect entrepreneur, but staying humble and accepting help from those who have been in your shoes can get you far closer than assuming that you’ve already reached your zenith. Additionally, it creates opportunities to develop new relationships with other business leaders.
Julie Keyes, of KeyeStrategies, invites you to learn more about what business advisors can do for all the young entrepreneurs out there looking to make their mark on the business world. Read more about the services we offer, and when you’re ready, head over to the contact page to schedule your consultation.
[fusion_text]On your journey to growing as a CEO, it’s absolutely imperative that you spend some time reading, researching, and understanding what it is that creates excellence. Without a doubt, CEO advising is a necessary part of that journey, but it should come after you’ve parsed through the data about what gives some people that extra “oomph” that takes them from ordinary to extraordinary. If you’re passionate about going the extra mile before you meet with an advisor, read up on some of the literature that’s been compiled about your field.
There’s a reason that Harvard University is one of the most trusted and esteemed homes of higher education in the world. Their passion for data-driven research and aiding in advancements in nearly every field, from linguistics to law, sets them apart as a bounty of information. Their bi-monthly publication, the Harvard Business Review, is an invaluable resource for those seeking the latest news in the business sector. An article from their May-June 2017 lays out the four common qualities found in successful CEOs. Start here to evaluate where you are in terms of each of those qualities:
Deciding with speed and conviction
Engaging for impact
From there, you can start setting goals before you ever step foot into your first CEO advising meeting.
While not light reading, Botelho and Powell’s book is based on breakthrough research on what sets certain leaders apart and what leaves others with a lot to be desired. Though it was only published earlier this month, it’s already causing quite the stir amongst thought leaders in the field. The renowned author of Drive and When, Daniel Pink, said of the book, “Drawing on a remarkable analysis of thousands of current and potential CEOs, they find that the best of the best share some common traits… Whether you’re running a large organization, or simply have your eye on the corner office, this book should be your guide.” Read more at their website or purchase it on Amazon.
So, you’ve read about what it takes to be a successful CEO and you’re ready to get started with a CEO advising consultation to help you get there. This is one of the most important decisions you’ll ever make in your career and making the right choice should be a top priority. Julie Keyes, who has been in the business of CEO advising for over 30 years, put together a video to help you make the right decision. Once you’re sure that you’re ready, book your appointment for a consultation and start your CEO advising relationship with the best of the best. Don’t just take our word for it: Read client testimonials from business leaders just like you who found success and satisfaction with Keye Strategies. [/fusion_text][one_full last=”yes” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=””][button link=”https://keyestrategies.com/exit-planning-minneapolis/” color=”default” size=”xlarge” stretch=”” type=”” shape=”” target=”_self” title=”” gradient_colors=”|” gradient_hover_colors=”|” accent_color=”” accent_hover_color=”” bevel_color=”” border_width=”” icon=”” icon_position=”left” icon_divider=”no” modal=”” animation_type=”0″ animation_direction=”left” animation_speed=”1″ animation_offset=”” alignment=”” class=”” id=””]Begin Exit Planning[/button][/one_full]
If you’re planning to transition new leadership into your small business, a business coach can help ease the process and reduce the amount of stress and anxiety that naturally comes with any big change. The key to working with a business coach during transition planning is to start early. The process can take a while, especially if you want to do it correctly. If you’re thinking of phasing out of your small business, start with Keye Strategies.
The first step will mean getting a plan down on paper. Some transitions plans can take anywhere from 5-10 years to fully implement. Starting early, and with an experienced business coach, could mean the difference in the foray being successful, or you finding yourself stuck underneath of a small business that you simply can’t get out from under.
Once you’ve got a plan, you can start working with your financial advisor to decide how much you’ll need to live on throughout your retirement. Without understanding your family’s financial needs, any decision to sell is a risky one. Too often, small business owners who decide to transition out into retirement find themselves lacking funds in the near future. Working with a business coach to decide if exit is possible requires cooperation between yourself, your coach, and your advisors.
Business coaches can also help you decide whether sale or bringing in someone new is the best option. Depending on whether or not your family needs a continuing stream of income is the biggest factor in this decision. While selling means that you get a larger lump sum now, a business that is doing well may pay more dividends in the future by hiring new leadership.
Finally, your business coach can help you navigate the pitfalls and hurdles that often pop up over the course of exit planning. While a lucky minority experience a smooth transition, that’s the exception, not the rule. Working with a business coach means that you can spend more time relaxing at your beach house and less time signing paperwork and re-scanning necessary documents.
Julie Keyes at Keye Strategies is experienced in helping business owners complete the transition planning process and finding the situation that works FOR them, not against them.
To learn more, check out this page on business exit planning and download your free ebook!