Make yourself Invisible!
The most simple way to add value to your small / medium size enterprise is to make yourself, as the owner, as un-important to the business as possible.
Contract negotiations – Let someone else do it
Finances – Read the accounts, don’t prepare them
Customer relationships – Leave it to your number 2
Making sales – Teach somebody else
Whilst this is extreme, the principle is still important. The owner should provide strategic guidance, ensure relevant controls are in place and supply relevant training to staff. If the owner is too important in any of the operational areas mentioned above, the value of the business will be intrinsically tied to them as an individual. This can have a serious effect on the company valuation, when you look to exit the business.
Date: 14th May, 2007
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