Succession. Business owners dream about it the moment they turn on the lights. One day this business will provide a beautiful life for my family. One day, my children will begin working in the business. One day my business will give me the freedom that I’ve always dreamed about.
Creating a successful business is so much more than the numbers. After all, behind every number is a person. You planted the seeds, you watered the soil. You provided the sun. Now it’s time for the harvest. All of your work, dreams, and toil created a ripe bountiful. What’s the next step?
As in any great work of art, there are the mechanics, and there are the aesthetics. Harmony, the source of the real value is created when the mechanics and balance merge and become one.
In business, the intangibles are where the magic happens.
The primary business intangibles are:
- Wellness Capital- Your life, your aspirations, your internal harmony will always be reflected in the true value of your business.
- Human Capital- Your most valuable asset is not your inventory. It is your people. As business gets more commoditized, your differentiation is your ability to innovate driven by your team.
- Customer Capital- The only reason for any business is to serve its customers. No clients. No business. Growing and retaining a customer base is key. Richfield, the author of the
- Loyalty Effect, states that a 5% improvement in customer retention rates will yield between 20 to 100% increase in profits across a wide range of industries.” No surprise here.
Structural Capital- Process and Data is the venue for the business memory. Structural Capital is essential to untether the operation of the business from the owner(s).
If you want to know how attractive your business is to a buyer click on the link below. If you’d like to learn how to maximize your harvest, call me.
