Vacation - it's often an elusive concept for the owners of small businesses. Even when owners do take time off, chances are they're still checking in constantly, which has become increasingly easy to do in this age of the smartphone and ever-omnipresent Internet connectivity. The ironic thing is that this constant owner involvement can actually be detrimental to the value of the business from the perspective of potential buyers. As we have discussed in previous articles, it is important for owners to get out of town occasionally in order to help increase the value of the business in the long term. The attributes of a quality business include: Lack of owner dependenceWritten processes and proceduresAn owner-driven business is not an attractive asset in a buyer's eyes. An in-place team that can provide continuity and assist in the growth of the business under new ownership IS. An enterprise with infrastructure guiding its revenue-generating capacity is much more appealing than one with a singular person holding the key to the revenue engine. It is important to have systems running the business and an experienced staff running those systems.If you want to improve your business - plan an extended vacation! Your staff and family will be glad! It can help you see where the gaps are and where improvements need to be made in order to decrease owner dependence and increase business efficiencies and value. Owners need to always treat their businesses as an investment, not a lifestyle. Avoid the trap of letting personal identities get wrapped up in the company. Business owners that believe they are doing the best for their company and family by handling everything are actually creating a trap for themselves. Too many owners find themselves unable to easily extricate themselves from their businesses. They cannot go on an extended vacation, cannot be away from the business without constant communication, and worry that things will fall apart or not be done correctly if they are not there. Sound familiar? Rather than being strapped like a prisoner to your business take the steps to free yourself and your business...... and then.....sell it and take a walk on the beach. Copyright 2007-2013. All articles are authored by Rose Stabler unless otherwise noted. Certified Business Brokers, Texas All Rights Reserved
