|
When thinking about your company's most important assets, items like Equipment, Real Estate or Intellectual Property may come to mind first.
While these items may all be very important, as a business owner, your most important asset will always be your dedicated employees. You cannot overlook the importance of a qualified management team & dedicated employees when assessing the overall value of your company.
Put simply, employees are an investment, not an expense.
Yes, you pay them for their services, however consider the impact a talented and efficient employee/manager could have on your bottom line.
Consider an initiative-based team of employees, that are fairly compensated and rewarded based on their performance. This makes it less likely that the employee would voluntarily leave if ownership were to change hands. A buyer will always evaluate the performance and structure of current management and employees before considering to purchase the company.
If you have invested in your employees’ education and further learning to become a top performer in their profession, that would add an extra competitive edge to your team. With any job there is room to improve.. Even if it is cutting your lawn – there is a sophistication and art to perfecting the process.
An experienced buyer will observe employees based on how they feel and express themselves in the work setting. Trusting the current team in place will make the decision easier for a buyer down the road.
Your Management Team: Are they capable of running the business if you are absent? Are they involved in the decision-making process, whether it be operational or financial? Are you sharing finances with an “inner circle” of management team members? Key managers and operators will appreciate it if you involve them in both the financial and decision making side of the business. Placing this trust in employees can often empower them to take their role to the next level! They will also know everything they need to know should you depart from the operation after sale.
Imagine the new owner steps in expecting the team to run both operational and strategic elements of the company. Will your team be up to the task without your leadership? It is up to you to have your team organized in a way that they can function at the highest level of efficiency, even without your day-to-day guidance.
Lastly, consider the physical presentation/cleanliness of your operation. Do your facilities – Office, Break rooms, Wash and Bathrooms offer the employees a welcoming and clean look? In my past business consulting experience, it’s key that the first thing you take a look at are the break, wash and bathrooms. It will tell you how much the owners care about their people. It is understated what a power wash and a bucket of paint will do for employee morale. They are easy first steps to increasing outcome, input & overall positive morale.. The foundation for an efficient company atmosphere!
| 
