How To ‘You-Proof’ Your Business

You may or may not be familiar with the term ‘you-proof’ but by the end of this blog I’m pretty sure you will be able to relate to it.

Almost all the business owners I work with started their business on their own or with a partner. They built it from nothing and gradually added more customers and employed people to help get the work done. They added new machines or equipment to do bigger jobs and do them faster.

Moving From Having A Job To Being A Business Owner

During the early stages of all these businesses, there was a point when the owners moved from having a ‘job’ to owning a business. Unfortunately, not all business owners make that move and remain stuck in a ‘job’ which ironically, is usually what they wanted to get away from when they started their business.

The downsides of being stuck in a’ job’ of your own making are:

  • you work all hours but don’t always get paid the most;
  • the business becomes your boss and time freedom remains a dream;
  • the business is less valuable than it could be. Any ideas that the business could be your pension may disappear.

The Ultimate Question…

If this sounds familiar, the ultimate question you should ask yourself is:

“Could my business work without me for 3 months?”

If not it’s time to ‘you-proof’ your business!

This is one of the questions in the Value Builder assessment The Value Builder assessment scores your business on the 8 drivers of value and shows you where to put your effort to have a business that gives you the financial and time freedom you deserve.

If your business couldn’t survive without you, it’s worth about 33% less than if it would hardly suffer without you being there and doing what you do.

That difference means:

  • less income for you now;
  • you work harder now;
  • fewer people would want to buy your business and they will give you less for it!

Are You The Hub Of The Business?

If you answered “No” to the question, then you are probably a hub of the business – not a great place to be. There are ways to avoid being the hub where the employees act as owners – that is they take on responsibility, solve problems themselves, consistently give great customer service and take pride from it.

The Reality Of Being A Hub

In 2007, David Heimlich started a recreational sports league for adults, Nation Leagues, with nothing more than a $60 loan from his father.

After 11 years, he fell ill and needed to sell – but his hard work over the years amounted to a business of no value. Why? Heimlich ran every aspect of the business (from marketing, registration, and even refereeing the games). Without him, Nation Leagues was worthless.

Heimlich had one choice: transform the business into one that could thrive without him.

David Heimlich invested so much of his time into Nations Leagues that he forgot to separate himself from the business – a costly mistake that would result in a business of no value. In order to course-correct and successfully sell, he had to find ways to make the business less dependent on him.

This is the same concept learned during Module 7 of The Value Builder System™: The Hub & Spoke.

How dependent is your business on you? Could you ever step away and ensure operations would run smoothly?

‘You-Proof’ Your Business!

So how do you ‘you-proof’ your business and stop being the ‘hub’?

You can start by understanding the 8 Key Drivers of Company Value and find out what your Value Builder Score is.  This will set you in good stead to get the value you deserve and have worked so hard for.

If you would like to speak to me in more detail about you-proofing your business, book a free slot in my calendar.

Listen to David

Listen to and watch David Heimlich on Built to Sell Radio. David was interviewed by John Warrillow, author of Built to Sell: Creating a business that can thrive without you. John is also the host of Built to Sell Radio, a regular podcast revealing the stories and advice of business owners who have sold their businesses.

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