Many entrepreneurs set out on their business journey with grand aspirations of creating a thriving enterprise that not only generates profit but also builds substantial value as an asset. However, for many, the reality can be quite different.
The systems we implement with our business owner clients are specifically designed to address this disparity by delivering three critical outcomes:
1. More profit and growth
The foundational goal of any business is to make money and grow. Profit not only sustains the business but provides the necessary resources for expansion and development.
2. Increase the value of your business as an asset
Your business should be more than just a means to earn a livelihood; it should be an appreciating asset. In an ideal scenario, the value of your business should increase over time, making it a valuable long-term investment
3. Provide more time freedom
One of the primary motivations for starting a business is the desire for greater personal freedom and a better quality of life.
Done correctly we call this Succession Leadership. When a business shows succession leadership the outcomes can be better than the business owners ever dreamed.
Unfortunately, statistics paint a sobering picture of the current business landscape. Regrettably, more businesses fail to reach their full potential and owners are retiring with far less than the asset value they could have achieved. Many business owners spend years toiling tirelessly, only to find themselves without the financial security and freedom they had initially envisioned.
What would you choose?
More Growth and Profit vs Stagnant Growth and profit
Increasing asset value and options for retirement vs Low asset value creation
Time freedom on the journey vs 60 hour working weeks.
To break free from the "owning a job" syndrome and transform your business into a valuable and thriving asset, it's crucial to take a close look at the factors that can hinder your progress. Common challenges include a lack of effective strategies for growth, an absence of proper systems and processes, and an overreliance on the owner's involvement in day-to-day operations.
It's time to take a proactive approach to ensure that your business is not just a job, but a valuable, thriving entity.
In the following paragraphs, we'll explore practical steps that BSP uses with clients and the strategies that enhance the value of your business, boost profitability, and achieve the personal freedom you've been working so hard for. We will then provide a list of real-life examples, of businesses that have been through our systems and have become succession leaders to create more Profit, value and time.
Creating more profit, value and time in your business
1. Strategic Growth Planning
To escape the stagnation trap, you need to develop a well-defined growth plan for your business. Identify new opportunities, diversify your product or service offerings, and tap into untapped markets. Embrace innovation and adapt to changing consumer trends to ensure sustained growth.
2. Streamline your operations
Implement efficient systems and processes to reduce owner dependency. Your business should run smoothly even when you're not there. Automation, delegation, and effective delegation are key tools to create a business that operates independently of your constant supervision.
3. Build a strong brand and customer base
Investing in brand building and customer loyalty can significantly enhance the value of your business. Loyal customers not only generate consistent revenue but also increase the attractiveness of your business to potential buyers or investors.
4. Use a sounding board
Using the guidance of experts who can help you navigate the complexities of business growth and asset building. Their insights can be invaluable in shaping your business into a valuable asset.
5. Development of Leadership
Develop your own leadership while developing the leadership of others will create the foundations for more time freedom, options around retirement as well as increasing the business value.
By actively addressing these key areas, you can transition from merely "owning a job" to owning a successful and thriving business that adds real value to your life.
Executing this strategy in the real world
Below is a small sample list of just a few businesses that have been using the BSP Succession Leadership Strategy successfully. For privacy purposes we only list the industries, but all examples are real, working in the program now, and on average have been involved for between 1 to 7 years.
Businesses in NZ and their turnover after executing the BSP Succession Leadership Strategy:
Type of Business | Initial Turnover | After BSP Succession Leadership Strategy |
|---|---|---|
Plumbing | $1.7m | $5.6m |
Engineering (1) | $1.5m | $2.6m |
Powder Coating | $700k | $1.4m |
Immigration | $600k | $1.2m |
Joinery | $600k | $1m - achieved in one year |
Automotive | $550k | $980k - achieved in one year |
Engineering (2) | $2.6m | $3.3m |
Engineering (3) | $500k | $1.6m |
Wholesale and Distribution | $12m | $22m |
Electrical | $1.5m | $6.5m |
Freight & Transport | $2.3m | $6.5m |
Earthworks | $1.4m | $4.2m |
Tiling | $0 | $750k |
Drain unblocking | $750k | $1m |
On average the overall growth and value of these businesses has increased by 100%. In addition, most of these business owners can spend time away from their businesses and know that they will be performing at a high level in their absence.
Your business serves you, not the other way around
Remember, the journey toward building a valuable business asset is ongoing and requires dedication, adaptability, and a clear vision for the future.
In the end, it's about ensuring that your business serves you, rather than the other way around.
Has this article helped? We'd love to know your thoughts and if you have any questions. Talk to one of our advisors for more personalised advice on creating succession leadership in your business. Just phone 0800 287 266 or email at info@bspadvisory.co.nz
