Increasing our company’s value means decreasing risk.
Business owners are ALWAYS on the lookout for risk.
We can’t ignore the obvious, like when demand is down, or our market is shrinking.
But there are other areas where risk lurks, creating a trap.
Because it’s RISKY when our business:
➣ Can’t run without us or a key employee.
➣ Competes on price – it lowers our margins.
➣ Serves many different types of customers – marketing becomes more expensive and less effective.
➣ Generates revenue from services billed by the hour – trading time for money doesn’t scale and can require expensive people who are hard to find and keep.
➣ Lacks systems – each new job is recreating the wheel.
➣ Doesn’t have positive cash flow – we might not collect all your accounts receivable.
But if your business focuses on a narrow niche, provides scalable solutions instead of services, generates consistent profit and positive cash flow, and runs without you, that’s a VALUABLE company to you and others.
At times we’re reluctant to change what worked in the past.
But as the saying goes, “What got you here won’t get you there.”
These strategic shifts can turn your business into an asset that gives you options – to scale, sell, or remove yourself from the day-to-day.
That’s real freedom and security.
Read my other blog: What´s Love Got To Do With…Business?