Accelerating Business Wealth

Accelerating Business Wealth – Showing You The Money

This segment will help your business to dramatically accelerate your business wealth and help you to convert your years or risk-taking and sweat equity into cold, hard cash.

Phil’s Profit Points™ in Brief:

• Every business will be more valuable when it applies certain structures and processes.

• A business is a separate legal entity, independent of the owner’s or founder’s identity.

• A business that runs without the owner’s constant presence is much more valuable than one that requires constant attention and instruction.

• Regardless of your business’s age or size, thinking and acting like a big business will make your business more valuable and you more wealthy.

Are you one of the 70% ten entrepreneurs who may be selling or transitioning out of their business in the next ten years, according to demographic research, and doesn’t have a written succession or transition plan? Although you’re in the majority, you’re leaving money on the table and adding unnecessary stress to your life.

You probably started your business by taking fantastic, if not fanatical, care of your customers. There were probably a few years when some of your employees took more vacations and possibly even made more money than you did. Yet, you had all the risk. Now, it’s time to structure and capture your reward.

Here is how to create the structure that will maximize the value of your business, often a large part of your personal wealth, so that you can take Control and Confidence™ of your financial future.

Symco Business Wealth Accelerator™ Model

1. Growth Strategy: are you existing services to your existing customers, attracting new customers, or developing new products and services? Every organization wants to grow. Growing the top line revenues is easy. Growing the bottom line faster than the top line will maximize your business value the fastest.

2. Metrics & Key Performance Indicators: how frequently do you receive key operational and financial information? The more frequently you measure, the easier it is to add up and report. If you measure production and safety every day (and you should), then you will be able to manage and improve these numbers because everyone knows you’re paying attention to them.

3. Organizational Chart: set this up by position, not person. Then, extrapolate as to what the chart will look like in five or ten years. If you’re growing at 15% per year, you will be twice as big in five years. Who can fill these positions with training and developmental experiences, and who will you need to replace to function at the new level?

4. Management: Results, Roles, Responsibilities. This expands on the positions described in your organizational chart and adds the important focus on results. Too many job descriptions, including the 16 page booklets developed by HR departments, focus on the mind-numbing minutiae of tasks and neglect the more important results. Does a football coach care if a quarterback moves his left foot or right foot first? Of course not; he wants points scored.

5. Contingency Plan: if the president, owner or general manager can’t perform their duties, what happens? How are decisions made? Who is in control? Who can sign cheques, execute legal contracts on behalf of the company, authorize corporate borrowings, and continue business operations? What happens if a power failure knocks out your equipment or technology? Your second-in-command and your lawyer need to have this information as their finger tips so they can step in and keep your business running and protect your wealth.

6. People Strategy

7. Operations Strategy: What is your current production capacity? What does it cost to produce a single product or service? What are your overhead rates? How can you scale up production without significant new capital investments.

8. Marketing and Branding

9. Financial Statements

10. Business Valuation

11. Succession Planning

12. EXIT Plan