How can it be true that the more I work in my business, the less it’s worth?
I first heard this comment from a fellow EOS Implementer™, Kevin Armstrong, who hails from Vancouver. He explained that the notion came to him when he was working with a small business owner who wanted to sell his business.
To the business owner’s dismay, a valuation expert told him that because he had always controlled everything and had not developed a strong leadership team, the valuation he desired was dependent on him staying in the business. He was stuck!
Make Your Business Less About You
This is true for any business owner who one day wishes to sell their business, pass it on to the next generation of the family, or simply enjoy some work-life balance. If the operation of the business depends completely on you, then none of those is possible.
On the other hand, if you implement a business management system like EOS®, you have options. EOS helps businesses achieve three things: Vision, Traction, and Healthy.
- Achieving Vision means making it clear to your leadership team what your vision is for the company. This includes what it is, where it’s going and how it is going to get there.
- Achieving Traction means getting your leaders to hold themselves and their people accountable to executing your vision and becoming masters of execution. This results in increased revenue and profits.
- Achieving Healthy means creating an open and honest environment where your leaders trust each other and act for the common good. Unfortunately, some don’t behave that way. And as your leaders go, so goes the company.
Why Less Is Better
Eventually, after implementing EOS, you will find the business is producing results that exceed your expectations. Best of all, you will have succeeded in decoupling yourself as a mandatory part of its daily operations. When that happens you are in a position to take a vacation, maybe even a several-month sabbatical (gasp!). You will certainly be able to get more of what you want from your business and be in a position, at the time of your choosing, to exit it in some fashion, at a value you deserve.
Written by Ed Callahan on November 4, 2019