Build Value – Reduce the Business Reliance on You
Your Role in Business Value
When you first started out you were dreaming of building business value on which you could retire. Were you excited about the opportunity to build your own future? It possibly made you feel a little bit queasy – but you did it anyway! Are you still thinking positively about the future, or do you spend more time worrying about it now?
If you have a business partner, hopefully you have the right one. If not, now is the time to address it. We have seen many start-ups crumble because business partners don’t share the same values or vision. Sometimes it simply slows the business down. But you don’t have that time any more. Things are going to be different in the future. Now is a good time to stand up and take the brave decisions, have the hard conversations and get ready to be fit for the new world.
Having the right partner can be a multiplier
When you support each other in a positive way, share the responsibilities and often the financial burden. The best partners have complimentary skills and become greater than the sum of their two minds. Do you have some hard conversations to have?
Being a business owner is NOT normal and no one else cares about your business like you. Not even your staff! Though they will care more if they know where the business is going and what their role is in that journey. That’s where the planning comes in. Addressing the roles in your business means looking at yourself – are you the best person to lead it? Are you doing a job IN the business or are you focused on the way forward, the long term and strategic direction of your business and how it serves your personal needs? Should you be employed in your business at all?
It’s time to separate the Income, Ownership and Control of your business – these are three hats that you probably wear every day.
Let’s questions whether you should and what to do about it.
INCOME – is earnings from employment in a role in your business. Just because you own the business doesn’t mean you should have a job in it. If you do, define it, set the parameters and let everyone know what they can expect of you in the same way you expect other employees to behave. If you don’t have a role, don’t interfere! Let everyone else do their job and hold them to account for the job they are asked to do.
CONTROL – the director’s control a business and have specific duties, legal liabilities and obligations. They deliver the strategic direction given by the shareholders. You can be an owner without being a director or an employee. If you have a director role, make sure it’s defined and everyone in the business knows what it is. Know and understand your duties and liabilities. Control means leadership, so what are you doing to LEAD?
OWNERSHIP – owners are shareholders. They provide the capital for the company to perform and they appoint and remove directors. They set the strategic direction and instruct the directors on what goal they want to see achieved with the capital they have provided. There is no requirement for shareholders to be directors or employees.
Time to Decide
Separating the roles means you can separate yourself from the business. You decide what roles you want to or are equipped to perform. Being an owner should not mean you expect your staff to behave one way and you behave differently. Maybe it’s time for you to reconsider your role in the business and play to your strengths instead of trying to fill all the gaps. If your business is not reliant on you it becomes worth more.