For business owners the Covid-19 pandemic has been a time of extremes. There hasn’t been a ‘normal’ and we aren’t going to be working ‘normally’ for some time to come.
Those extremes have been very close to me, sometimes through the members of my peer group or via business contacts. I have seen:
- a business literally stop in one day and go into a form of hibernation, with the owner getting a temporary job until he is ready to go back to his business;
- owners agonising about making people redundant whilst managing the furlough scheme – do they have enough work when the future is uncertain and is there enough money in the business to pay the staff;
- some sectors, like conveyancing, going from being really quiet at the start of the lockdown to being really busy when residential house move restrictions were lifted;
- finally, I have seen an entrepreneur start up a new business in response to everybody’s need to protect themselves from Covid.
I think we have all been aware that Covid has made us react in the usual recession playbook:
- chasing debt with much more vigour
- looking to save costs (usually training and marketing costs go first then people)
- going virtual (selling product or services, marketing and selling)
- being nimble when it comes to reacting to customers, staff and government initiatives.
Literally keeping on top of things and not really thinking much about the long term.
The Principles Of Value Still Work
But here’s my point, I don’t think the principles of building a valuable business have changed at all because of Covid-19. Your business plan probably has but here’s a reminder of what a valuable business is for a SME business owner:
- Can thrive without the owner’s constant input and stress;
- generates a good life for the owner and their family-time and money;
- is attractive to a buyer if the owner wants to sell.
What Are The Principles Of Value Building?
Well, have a look at this picture that shows how typical business owners compare to owners who build valuable businesses.
There is no magic formula for creating a valuable business, but the end result is usually a durable business and substantial personal wealth.
The 9 Principles
Over the next 2 months I’ll be drilling down into the 9 principles that value builder owners follow. I’ll share real-life local stories plus give you loads of tips on how you can build value in your business. If you are wondering why the list above has 8 principles yet I mentioned 9, then consider the point when you could be selling your business. For you that point will feel like the finishing line at the end of a long marathon. But for the buyer of your business that point is their starting line.
So, the 9th principle is about leaving some market share for the next owner.
In the meantime, please get your free copy of the eBook, Famous Or Rich: 9 Ways Value Builders Prioritise Wealth Over Recognition.
Download now and start your journey to creating a valuable business.