People are at the heart of every business and a strong second-tier management team is particularly important for increasing business value.
Building the right management team is the biggest value driver of them all. Ask yourself, “If I permanently left my business today, would it continue without me?” Building a management team long before your business actually needs one and long before you want to sell is key to maximising business value. You effectively need to make yourself redundant!
Your management team need to be able to make decisions without you and know what to do and how to do it. It’s your responsibility as a business owner to attract and retain the right management team in your business. Your next responsibility is to develop, inspire and motivate that team.
If YOU are the business, the company’s intrinsic value will suffer, so removing yourself from the day to day of your business and building a team to manage the day to day is essential.