Today we have a guest blog from Earl Bell:
Being a business owner/CEO can be addictive and imagining what life will be like when you no longer “run the show” may seem like a distant blur. However, this is EXACTLY what I’d like to suggest you take a moment and do right now!
Are the majority of your assets are tied up in the company? If so – a sell transaction will substantially fund your retirement. Do you know “how much money is needed” to provide financial peace of mind? Do you know what the company is worth today? What is the gap – in other words – how much additional value must be created before selling the business to achieve your financial goals?
Get started by assembling the right leadership team before developing a “process for creating value.” Great leaders know how to coach employees and inspire them to greatness in support of a company’s mission! Conversely, ineffective leadership and guidance is like having a rudderless ship…
So… on to the good stuff - what does a process for creating value look like?
Well, that’s way too complicated to cover in a blog post, but let me give you a simplified model:
1. Identify the value gap (for example – let’s pretend you want $5 million more enterprise value or $1.25 million in annual operating earnings.)
2. Quantify what risk you are willing to take – (such as - expanding geographic territory is OK but acquiring a competitor is not OK.)
3. Identify what creates value - automate decision making in support of this. Think “offense” in this area – like building stronger relationships with key customers.
4. Identify what destroys value – build process to eliminate bad decision making. Think “defense and risk management” – such as using scientifically proven methods to make the right hires for your organization.
5. Monitor, measure and reward progress – lead and inspire others – align rewards with achievement.
The point I want to make it this… “defining an exit goal and value creation process improves odds for achieving financial peace of mind.” I’d suggest action sooner rather than later – the stakes are high!
ABOUT EARL BELL
EARL BELL is the author of, Winning in Baseball and Business, Transforming Little League Principles into Major League Profits for Your Company, which provides a roadmap to success for leaders that desire to build thriving companies in a very competitive 21stcentury business environment. Earl believes that “everything you need to know about business, leadership and team building can be learned from Little League baseball.”
Earl coaches and consults with owners, business leaders and their teams, teaching them how to dramatically reduce the time it takes to improve profitability, customer experience, employee engagement and company value, while simultaneously increasing discretionary time and reducing both stress/employee burnout. He believes the secret to winning in baseball, business and life can be summarized in a simple formula: Winning = Service + Humility. His motto is that Winning in Business is a Team Sport!
Earl has served in the Chief Financial Officer role for numerous companies throughout North America. His personal passion is youth sports and he has coached 28 teams since 2002. Earl is a CPA, graduated from SU (Seattle University) with a BA in Accounting and from the MILL (Mercer Island Little League) with a Master’s in Youth Baseball.