Growing your business takes discipline and creativity. You have to serve like a compassionate operator while at the same time thinking like a buyer. The very best companies build their business in a manner that creates real value. This value should be perceived by customers, employees, as well as potential buyers who may want to acquire your company down the road. In all successful merger and acquisition events, buyers look for certain items to ensure they are purchasing a strong and well managed company. Consider these three value drivers and you will realize significant growth, financial success, long term sustainability, and optimum value at the time of sale.
1. Build a strong support team.
Most companies are too reliant on the personality and drive of a strong leader. Great companies that are poised for growth and a possible financial transaction rely far beyond a single strong leader and ensure their success by building a strong leadership team. In order to really be a great company, you must hire people who can run with your ideas. These people are generally more expensive to hire but yield great long-term results. It is important to remember that a strong team will require a strong commitment to additional financial resources. Once you give them room to run and the resources they need, you will experience growth like never before.
2. Be certain that you have a strong and discernible differentiation.
Being different in your industry is difficult to do but it is what makes you special. Great companies take time to consider what it is that makes them special. When considering your specialization, think with your heart and not your checkbook. When putting your heart before your wallet, you will find your true self and your team will gladly follow. Start by putting yourself in the shoes of your customers, clients, or patrons and you will quickly find your strong and discernible differentiation. If your employees don’t know what your differentiation is, then you do not yet have one.
3. Track your important measurables.
Great companies and their leadership teams are not afraid to measure their processes and results. The best companies hold each member of the organization accountable to the critical things that support your differentiation. Don’t be afraid to be at risk. Make sure everyone, from the CEO to the newest employee, knows what is expected and is accountable to results. Once you receive results that support your differentiation, make certain to celebrate those successes with all of your team members.
Once you have considered these value drivers and employed strategies to ensure their success, you are well on your way to building a strong and sustainable company. You now have a story that is easy to share with prospective customers, clients, or patrons, as well as potential buyers. A great company uses a strong mind and a tender heart to build and celebrate a successful enterprise.