One of the biggest challenges facing modern businesses of all sizes is how to take the business to the next level of success and profit without the cost structure getting out of control admin
. One of the biggest costs on most business’s Profit and Loss Statement is salaries and wages, or in simpler terms, people.
As a business leader, your challenge is to get more out of your people without making them work ridiculous hours or chasing them around barking orders. What would it mean to your business if all the people you employ were passionate about the business, understood and believed fully in the goals and ideals of the business and strived each day to deliver the goals and results their job was designed to deliver?
In the past, business leaders have often resolved growth challenges by employing more people and trying to get them to generate additional sales and improved customer service, only to find out much later that the growth in overhead costs has cancelled out the growth in sales. It has often been said that any business is only as good as the people in it, and today this statement is probably truer than it has ever been.
A famous quote states; “A fish rots from the head down” and this is true for any business or organisation. The senior leadership of any organisation is where any strategy to get more from the people must start. The leadership of any business must give clear direction, rules and goals for all members of the business to follow, including the most senior directors.
Being a leader in a business is not just about explaining the goals and rules of the business, but inspiring the team in the business to become passionate about what the business is trying to achieve and why it is so important. Many leaders forget that you can only lead people, not a task or a job, and as such, it is the way the people feel and view their jobs that often makes the difference between a company that slowly moves forward and one that continues to outperform its competitors regularly. True leadership is about inspiring people where they care as much about the results and performance of the business as much as the directors and owners do.
So, even if you have a family member or key employee that will be buying the business, you still have to decide when you will make the transfer. Often since no formal planning or decision has been made, the decision defaults to when the business owner just does not want to work the business any more. And although this might seem like a logical time, it does guarantee greatest value for the business.
Sadly, waiting until you just can’t do it any more, might actually be at the lowest value of the business. Here’s why. As you start to fall out of love with the business, you are no longer putting everything into the business and the business is no longer operating a peak, the owner is relaxing and the business is as well.