Business Evaluations – Success From Coming To Grips (Part 1 of 2)

Business Evaluations – Success From Coming To Grips (Part 1 of 2)

A common theme I discuss in this blog is the importance of understanding that business evaluations can be affected by numerous factors many of which an owner would not normally pay attention to during the course of a long business ownership experience.

Some of these are:

• Use of business metrics to drive accountability
• Sustainable business systems
• Quality of financial information
• Formal processes and procedures
• Systems for people management and performance

There is a common thread going through this list.  They all require some human engagement to be put in place and become effective.  People have to cause these types of things to happen.  And it has to be people at the top of an organization.  They set the tone and motivate the organization to use them. In the privately owned business, it is going to be the owner who fills that role.

Assess how well a business is running as I do and you will find another common thread.  These areas are often the weak points of a business.  And the business’ weaknesses correlate almost exactly with where an owner doesn’t like to do something, aren’t good at doing something, or are tired of doing something!

This is not an indictment.  All of us are this way.  I’ve assessed my own business from time to time and I’ve confronted it myself.  (Which is pretty embarrassing I must say as one who teaches these things!)

The question you need to ask yourself is “how important is it to change in order to achieve the goals I want?”  If, as with so many of my clients, you assess the value of your business only to find you are far short of funding your desired financial independence, the need to change may become important indeed.

It comes down to this.  The only way to achieve the end you want…a successful return on investment for your years and years running your business…may require you to change and work on those very things that you’ve avoided for years because you’re not comfortable with them, don’t like them, or are tired of them.  You will need to come to grips.

Here’s the good news. If one does make the commitment to change – that commitment is the single most powerful force to getting the results desired.  Once you have made the commitment to working on change, you’ve done the hardest part.  Not all of it – but the single hardest part of it.

In Part 2, we’ll show you how you go from making the commitment to change to actually getting that change to happen.