Delegate, you must: if you want to sell your business one day
Despite what you may think or feel, doing it on your own won’t set you on a pathway to success. You can’t build a business without people and - as we discussed on The Money Show with Bruce Whitfield – if you want to sell your business, you’ll need to learn to delegate:
The Entrepreneurial Trap
Of course, entrepreneurs must be passionate, dedicated, and obsessive, to succeed. But, delegating tasks and building systems that enable your business to operate well, whether you happen to be in the office that day or not, is imperative for future success. Keeping the goal of, perhaps one day, being in the position to sell your business, is important. The adage of “if you want something done properly, then do it yourself” does not work in business. If a buyer ever wants to buy your business, they’ll purchase it without you in the mix. Building an asset of value begins with:
Knowing Your Customers
The first step towards ensuring that you’re building an asset of value, is to know your customers. Knowing who you serve, and what problems your products and services solve for them, is critical, as you build systems around their needs. By knowing your customers, and responding to their needs, you’ll establish, maintain, and grow, strong relationships. Moreover, your ability to innovate rests on your ability to delegate – if you can’t leave the office, because everything grinds to a halt when you’re not there – you’ll never be able to visit your customers and find out how their needs are changing.
Building a System of Delivery
A system of delivery (SOD) is the core of your business operations – the systems and procedures that work together to enable you to serve your customers. Importantly, those systems do not depend upon your input for every step of the way. Here’s what an effective system includes:
- A sequential series of activities;
- Measurable activities;
- Activities that people can be trained to perform;
- Activities that can incentivized and,
- Activities that are listed and outlined in clear job descriptions.
Your System Operators
Hiring the right people for your business is vital. An asset of value has, as one of its key features, able, capable, and motivated, operators who utilise effective systems to keep the business operational, and growing. You’ll hire the right type of person when you’re able to outline the exact type of role they’ll need to fulfil (that job description should be comprehensive!)
Train Your Team
Freeing yourself up to work on the business, rather than working in it, starts with training your team. Rather than spending large amounts of money on training that may not be an exact reflection of your business’ activities, train your team by using the systems that already exist within it. That way, you’ll be easily able to measure their success and suitability for the job, in accordance with your company’s needs.
Delegate and Do
Now that the systems are built, the right people are hired, and the training complete, it’s time to delegate. That doesn’t mean you hand over the reins of your business and go on a three-week holiday. Instead, for the sake of your business, your team, and your sanity, take small steps towards delegating, and apportion little tasks at a time. Let your team learn by doing, with small tasks first.
Review and Improve
Now that your team is operational, and systems are used effectively, it’s time to review your activities and see if any improvements can be made. Work with your operators to assess, review, and revise systems, and let them take ownership over their assigned system.
Get Out of The Way
Stepping aside so your system operators can do their jobs can feel like a wrench. Delegating is, however, imperative when you’re building an asset of value. Keep in mind your goal – that you may want to, one day, sell your business to someone else – and let your team do their jobs. Keeping an eye on operations is, of course, important, so make use of monitoring tools and internal data to ensure that things are running as they should be.
Acceptance and Liberation
Stepping away from the miniscule tasks and letting your business run itself while you work on it from the outside, can feel very difficult to do. Remember that you’re building an asset of value, and if you ever want to sell your business, you won’t be part of the package. Enjoy the freedom of letting go, no matter how hard it may be.
Building an asset of value takes time, dedication, and delegation. At Aurik, we’ll help you build the right kind of systems, for your kind of business.