Working On your business involves strategic planning versus tactical implementation. That means reflecting on what’s happening outside your business and its effects on you, as opposed to running the day to day operation. The result is reaching your goals by evaluating your processes and developing your own skills. Working In your business involves such daily activities as prospecting, serving customers, administration, and the “feel-good” activity of making bank deposits.
These daily activities will consume all your time and energy and take control of your business if you let them, preventing you from seeing the big picture, anticipating change, and responding to opportunities.
Steps for Working On Your Business
Step One: Plan the Work Weekly
The Harvard Business School completed a study of their graduates to determine what factors contributed to post graduate success. The number one factor was goal setting. The graduates that set goals, either formally or informally, were more likely to be successful in their careers and personal lives. Success was defined as a combination of compensation, career satisfaction, personal and professional achievements, and personal life satisfaction.
Planning the Work begins with goal setting. Know where you want your business to be in a year, in 5 years, and what your exit strategy for the business will be in ten years. Sometimes it is easier to set these goals starting with your exit strategy. Then ask yourself what intermediate steps do I need to do now to be in a position to achieve the goal in the future. This process sets the course of your business from where it is now to its planned destination.
Planning the work requires some time away from the business to determine if you are ‘on-course,’ plan any course corrections, and come back with a work plan that serves your goals.
Step Two: Work the Plan
Each planned goal should have a work plan for success; e.g. If one of your goals for the year is to grow sales by 20% the work plan will outline the activities necessary to achieve the goal.
Step Three: Evaluate Progress on a monthly basis and Make Necessary Course Corrections
Develop reports that provide timely, accurate information related to the weekly work plans and previously set goals. Remember, activity precedes results. Tracking activity will help to interpret the results you are getting. Monitor customer feedback and integrate the information into employee training, product/service innovation, and course corrections. Monitor your direct and indirect competition. Allocate your resources to insure your company’s next stage of development.
Tips for Working On Your Business
Set aside a time (2-3 hours) each week to get away from interruptions; e.g. go to a favorite deli, park, take a walk (use a recorder), etc.
Create your agenda for your time as the week progresses. Add items as they come up.
Meet once a month with someone or a group to go over your ideas. Banker, CPA, lawyer, etc. are also candidates.
Take in some business training workshops for fresh perspectives on issues your tackling.
Your investment of time in this activity will pay you back in generous dividends; e.g. cost savings, increased and better customer prospects, more sane moments, and a shorter distance to success.
By: Bruce D Hunter
Posts Tagged ‘Exit Strategy’
Small Business Start Up – How To Work On Your Business
March 7th, 2010Prepare to Sell Your Business From the Day You Start Business
February 16th, 2010
Most business owners are wise enough to prepare a well thought-out business plan when they launch their businesses. This plan is tweaked and enlarged as time goes on and the business grows. What is missing from most business plans, however well-prepared, is an exit strategy. Ideally, one should start preparing to sell the business the day they start the business!
How do you prepare to sell your business?
1. Have good books from the start. Wise business owners already know to keep accurate and up-to-date records, but you would not believe how many are not wise. Prospective buyers will want to see at a minimum three years’ worth of accurate financial statements. These include a complete balance sheet, profit & loss and cash flow statements. In addition, prepare a 12-month projection (you should have one whether you are planning on selling or not). Savvy buyers will want to see that an outside accounting firm has audited, or at least reviewed, these financial statements.
2. Itemize personal expenses. It is common for business owners to “live out of” their businesses; these items are considered to be discretionary expenses. These expenses include your personal car, a family member who is on payroll who doesn’t work for the company, insurances paid for you and your family, etc. These items will be added to the net profit of the business to arrive at a more accurate bottom-line.
3. Organize, organize, organize! Prepare systematic documentation of all job descriptions, business practices and operational processes. The more systems you have in place at the time of sale, the easier it will be to sell and for the new owners to assimilate into the business.
4. Keep an accurate and active inventory valuation. If your inventory is stagnant, get rid of it.
5. Hire and groom key employees. If your business relies on only you for its success, you will not be able to get a good price for it. Key management employees will demonstrate that your business is capable of sustainment with or without you.
6. Obtain a professional valuation. Depending on the size of your business, contact a business broker or a mergers & acquisitions broker to give you a realistic idea of what your business is worth. In general, professionals such as accountants and lawyer do not have the needed expertise that a business sales expert does to value your business.
7. Make sure the appearance of your physical facilities is excellent – clean and organized. Prospective buyers will be conducting walk-throughs and you want to make a good impression.
8. Hire a professional to sell your business. Generally, if your business has annual sales under $5 million, you can use a business broker, commonly called “biz opp” brokers. If your business is larger that $5 million in sales, you need to be talking to a mergers & acquisitions professional.
9. Prepare well in advance. When I sold my business, I took a little over two years to prepare to sell it. I grew it – on purpose – in order to sell it. The best time, generally, to sell a business is when it is in growth mode. Between the listing of your business and the time you have a check in your hands can take anywhere from three to twelve months, or more.
By: Tina Marino
