Submitted by: Nancy Lowell, Business Coach, AdviCoach
Whether or not you ever plan to sell your business, knowing its value and the factors that are contributing or detracting from it is priceless. Many of us hold beliefs about how we operate that may feel right, but could in fact be jeopardizing our growth. In his book Built to Sell, John Warrillow illustrates this in a parable about a man facing the reality that how he operates his business is hurting him.
The first issue facing many business owners is being too general a provider. I see this all the time when I walk into a shoe store that sells boxed candy or I encounter an entrepreneur offering her services as a life coach, an in-home chef, and a babysitter (you should see her business card)! I have mentioned branding before; this is an even more specific way to define your business. What are you really good at? What do you enjoy doing? What service or product are you and your staff are most confident and skilled in offering or selling? If you are doing or offering something beyond that, it may feel like you’re reaching a broader audience—but in fact you’re exposing yourself to greater competition, confusing your target customers, and diluting your resources by spreading yourself too thin.
Narrowing your target can feel terrifying and risky, but if you invest the time and really think about the long-term impact on you and your business, it is a decision that will pay off. You can make sure you have the right people in place; it’s likely that the people who aren’t a good fit for your new, more focused model probably weren’t a good fit for your old model either. You can pinpoint your resources towards a single goal, and they will go much further. You will eliminate competition by simply stepping out of the fray. You will probably feel more energized and driven than you have in a while.
Once you’ve decided on a single focus for your business, you have started the process of evaluating the value of your business. There are many more steps, including reading Built to Sell. If you’re not ready to take any action, then start simple. Take a sheet of paper and make two columns. On one side list what you love and are really good at in your business; on the other side, list what you dread and what you don’t do very well. You may find that this process offers you enough motivation to trim down some of what you offer to your customers.
If you’re interested you can click on the link below and take a free Sellability Score test. This will generate a score you can see, and I will get a report on your business that can be a helpful tool to prepare your business for sale or for growth, depending on which you prefer. We can meet to go over your score and do some goal setting and planning to move your business in whatever direction you choose.
