6 Tips to Increase Your Business Value

business-value

Six Tips for Increasing the Value of Your Business

Owning a business represents a life’s work for most people, an emblem of their vision, creativity, determination, and perseverance. Needless to say, your business value is one of the most important factors to success. As a result, when the time to sell eventually comes around, business owners will want to receive top dollar for their company. While businesses are ultimately valued for their ability to generate growing profits in the years to come, the following 6 tips can help in this regard and increase the value of your business in the eyes of potential buyers. 

1. Get Your Documentation in Order

One of the best ways to increase the value of your business is to, well, know the value of your business. Investors will assess your business on a number of factors, such as debt-to-income, free cash flow, and projected sales growth. In the end, if they see that your business is in a strong position to provide them a healthy return on their invested dollar, your business’ valuation will skyrocket.

The problem is that many small business owners have no idea on how to value a business. Business valuation requires a unique mix of tangible and intangible considerations. Among the tangible factors that can influence a business’ valuation include EBITDA, profits vs. cash flow, trends in profit, and percent of market share. General accounting financials, such as balance sheets, income statements, and tax returns, are also important to compare on a year-over-year basis. On the intangible side, pending legal rulings, brand image, the business’ sustainability practices, and goodwill in the community are all important factors that can drive value. 

Having organized documentation for the business may be difficult for the business owner amid the grind of day-to-day operations. Therefore, it is a good idea to work closely with professional accountants, attorneys, and business brokers when forming a business valuation. While there may be up-front costs for these professional services, having an accurate assessment of the business’ worth is an important first step in laying the foundation for increasing value. 

2. Demonstrate Scalability to Help Business Value

A scalable business does not have to spend more money to make an additional sale, allowing profit margins to increase alongside revenue. Scalable businesses are attractive to potential buyers because hypergrowth scenarios are possible with the correct marketing and execution, as owners can focus on running the business without the need for significant capital expenditures.

One step that businesses are taking to ensure greater scalability is to incorporate subscriptions into their business model. In general, it does not cost businesses much more money to sell an additional subscription. This has caused subscription models to proliferate across a wide range of industries, with car subscription services, alone, set to increase by 71% by 2022. 

business-value

3. Take Steps to Ensure Employee Loyalty

As many businesses scramble to find ways to leverage technology and increase automation in their operations, it may seem intuitive to believe that employees are less important than ever. However, there are a couple of reasons to reconsider this notion.

First, potential buyers are likely to be attracted to those businesses that come with high-performing employees, as it will save them time and resources in recruiting, hiring, and training their workforce. In fact, statistics show that businesses spend more than $4,100 per new hire, so businesses coming with a ready-made staff will be highly appealing.  

In addition, customers are more likely to choose businesses with a strong reputation of treating employees well, with 29% of a surveyed sample saying that how a business treats their employees is a significant determining factor for whether they will become a loyal customer. Therefore, if you regularly explore ways to make employees feel valued and solidify their loyalty, it has the potential to greatly increase the company’s value.  

4. Improve Your Business Space

As many businesses continue to explore ways to increase remote work and contactless order fulfillment, those companies with physical locations must find creative ways to optimize their business spaces. One idea involves using large windows and open spaces to increase natural light flow, which provides a more inviting ambience to attract customers and lowers utility requirements. In addition, it is important to design physical spaces in an adaptable manner, allowing the area to be shared with other patrons or rented out for special occasions.   

5. Increase the Convenience of Your Offerings

Fast food and drive-thru windows are an early example of the premium customers are willing to pay for convenience. Since the COVID-19 pandemic, delivery and curb-side pickup have also taken off. Finally, the continuing movement toward ecommerce has many customers choosing the convenience of online orders as opposed to visiting physical storefronts.

Therefore, any features that can add convenience to the customer experience are a great means of increasing your business’ value. In addition to the aforementioned features (if applicable), some other ideas for adding convenience include:

  • Business-specific apps that allow for quicker shopping and faster payment
  • Favorable shipping costs and terms
  • 24/7 accessibility
  • Subscriptions and recurring purchases so customers don’t have to remember to make a purchase. Just remember to make out opt-out avenues easy to locate

6. Add Automation as You Increase Your Business Value

business-value

Although it is critical to have a loyal and high-performing staff to appeal to potential buyers, there is no denying that automation will have a positive impact on valuation. Business investors will savor the idea of not having to pay salary, benefits, and time off for every single business function.

Self-checkout kiosks are an obvious choice for businesses that feature a physical storefront. However, even for businesses that are strictly online, there are still ways to add automation. Ecommerce CRM processes, feedback templates, chat bots, contactless payroll, and order fulfilment software are all ways to increase business value while reducing the work required on the part of the business owner.

Increase Your Business Value

As a business owner, it is essential to take steps to increase the value of the business in order to receive top dollar at the time of sale. By getting documentation in order, demonstrating scalability, ensuring employee loyalty, improving the business space, increasing the convenience of offerings, and adding automation, business owners can increase the value of their business and appeal to a wider range of prospective buyers.

 

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4 Best Solutions You Can Tailor for Your Remote Workers

remote-workers

Four Best Remote Worker Solutions You Can Implement

Remote workers can be an essential aspect of your business. Ever since the COVID-19 pandemic began and spread, companies underwent forced lockdowns, thus increasing the number of remote working employees. A survey states that 88% of businesses worldwide directed and encouraged their employees to work from home. This unexpected change in circumstances forced many companies to search for ways to work with their remote employees. Thanks to advancements in technology and software, employers progressively find it easier to work productively with their off-site staff. Reports show that several companies are changing some job positions to allow their workers to work full-time or partial hours from home.

However, shifting to a remote work setup has a fair share of challenges for employers. How can you manage the attendance and performance of your employees in a remote setup? What are the best strategies to secure business data with distributed teams? Business communications, people management, time management, customer service, and IT security are common topics of concern for many employers planning to embrace remote and hybrid (combination of in-house and remote employees) workplaces.

Now, companies can tap into several solutions to meet their productivity quota with remote working staff. As an employer, what are some of the best solutions you can tailor for your remote workers? 

Human Resource Onboarding Software

Various digital human resource (HR) platforms ease the time-consuming process of hiring and integrating new staff into an organization. These HR digital packages assist in the reduction of time taken between searching for capable employees to hiring them. These platforms aid you in reducing the amount of paperwork needed for hiring staff, processing employee benefits, and simplifies the set-up of payroll.

  • GoCo Onboarding platform

GoCo blog points out companies can customize HR platforms to meet the needs of their business. The value of these platforms affects your business’s bottom line by reducing the cost of having a well-streamlined HR structure. 

Communication Platforms for Your Remote Workers

remote-workers

Ongoing and clear communication is essential to the success of any business project and venture. Your remote workers face isolation and non-face-to-face immediate interaction. Team meetings, coffee and lunch breaks, chats with colleagues made it easier to access direct information between in-house co-workers. Employees working in remote locations do not have the same access to these informal chats. To reduce this lack of immediate communication, you can invest in internal communication customizable software and platforms to include remote workers. 

  •  Zoom Video Conferencing

The Zoom platform enables businesses and individuals to conduct group meetings, one-to-one meetings, and host events and webinars. During these events, Zoom video conferencing allows you to present your PowerPoint presentations, the use of whiteboards, and other software that engages your employees or clients. It allows for the set-up of different breakout rooms for more in-depth team discussions or social chats. You can record a meeting or webinar to have it accessible during offline hours to your employees, clients, or as a marketing tool for your website.

  • Microsoft Teams to Help Your Remote Workers

Microsoft Teams offers a virtual office for team discussions, meetings, social chats, and team document collaboration. This virtual office makes it easier for remote workers to fit into an organization or company. Microsoft Teams allows room for file sharing, basic video calls, integrating different applications, and other features. A feature within Microsoft Teams is its digital working space under its ‘Together mode’ that allows both in-house and remote teams to work in the same workspace or ‘sit together’ as a team.

Remote IT Support and Support for Remote Workers

In-house office setting, getting the IT staff to check on your computer or failing software is not a hustle. How about when you are working remotely? Platforms such as TeamViewer make it easier for the IT guy to help you fix your computer problem.

With TeamViewer installed on your computer, the IT staff can remotely and securely access it. You provide the IT person with the login details and the security number generated when you access the TeamViewer, thus allowing the IT staff to access your computer and help you fix the computer issue. Team viewer gives remote access to any device across various platforms.

Because remote and hybrid workers are at a high risk of cybersecurity vulnerabilities, companies and organizations must take more stringent security measures. Phishing, ransomware, and data leakage are just a few of the many IT problems remote workplaces may encounter. A minor IT problem can become a disaster, compromising the entire business. Hence, remote workplaces have several options:

  • Hiring an in-house IT expert.
  • Taking advantage of managed IT support Melbourne services.
  • Self-managing your IT security.
Conclusion

Remote work settings are increasingly growing, even after the peak rates of the pandemic, because of their cost-effectiveness. The recommended solutions above can help you manage your remote workers without compromising your business data, employees’ performance, and output quality. Having the right tools and strategies for remote work management can help make your company more successful.

 

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Developing An Apprenticeship Culture In Your Small Business

Apprenticeship Culture In Your Small Business

Apprenticeship in the Past

Back in the day, apprenticeship was a commonly used concept in businesses. At the time, every restaurant kitchen or the merchant’s back office had their own apprentices. The apprenticeship culture in your small business involves a lot more than just finding the responsible person for something that went wrong. This was the way that business owners educated and taught new skills to young people.

Apprenticeship in the Present- Not Sink or Swim!

Now we have universities, colleges, and many different training and workshops that allow young people to gain new skills. So when they arrive at the workplace for the first time, they will already have some knowledge. Maybe this is how the all too common “sink or swim” business practice evolved. However, more and more often, we see young people leaving college unprepared for real life.

Apprenticeship is for New and Existing Employees

Even the ones who have taken the time to do some internships need a close mentorship. This is how apprenticeship culture is integrated into today’s businesses. However, there is a key point that many small businesses tend to forget about: the apprenticeship culture should not only target new employees. It should also target the existing employees.

Why Is Apprenticeship Important?

When you want to have a successful small business, the business owner/manager, of course, has a key role. The idea that the business owner who only orders what needs to be done is no longer accepted. Instead, the role of the business owner is a lot more complex than it used to be. Today the business owner needs to coach each one of the team members. After all, this is the only way that every employee knows exactly his responsibilities and he knows how to execute them properly.

When business owners don’t take an active role within the apprenticeship culture, the small business won’t thrive. At the end of the day, whenever a deadline isn’t met, when there is a problem in the production line or in the distribution, no one knows who is responsible. So how can you improve your business if no one knows exactly what they need to do and how? This isn’t possible.

Motivating Your Employees Through Apprenticeship

The apprenticeship culture involves a lot more than just finding the responsible person for something that went wrong. In fact, the apprenticeship culture has another main goal, probably even more important than the first one.

Let’s say that you decide to hire someone for a position in your small business. Just imagine that this person will be the one responsible for defining new proposals to attract your biggest clients. You, as the small business owner, know that you did a good job hiring this person because he showed you that he was up to the job. So, you just hand him the task.

Killing Employee Motivation

The new employee, ready to show his appreciation for being hired and to be a part of such an important task, works as many hours as he can and he delivers what you asked before the deadline. So you meet with these big customers but you never tell the employee anything else about the meeting. You just keep asking him to do other tasks. You have just killed your employee’s motivation.

The fact is that this new employee, who is eager to show his value and skills, also wants to learn. In order to improve, he needs to have feedback. Your feedback! He needs to understand what he did well, what he could have done better, how to do it better, and what tools or skills he needs to improve. Without this feedback, the employee can’t know if he is doing a good job a poor job, or anything.

Building a Loyal Team Through Apprenticeship

As you can see, an apprenticeship culture should be a part of every small business. And the one responsible for it should be the business owner. The business owner should see himself as a part of the team, the link between the different team members who are always there to help each one of them as well as to explain to them what they need to do and how.

While the apprenticeship culture, or the way it is used now, has changed a bit, there are still many small businesses who continue to adopt an old-fashioned apprenticeship culture. Why? The reason is simple. Many small businesses don’t have the resources to attract the best-trained employees.

Hiring Employees With No Bad Habits

So, what they do instead is that they hire apprentices. They are usually young, extremely motivated and skilled. In other cases, when a small business is growing, it is time for the business owner to decide on the best approach when they need to hire. While for some companies hiring someone with experience in the area is crucial, other businesses prefer to employ someone who can simply dive-in into the business without any bad habits or preconceived ideas.

Conclusion

No matter what you prefer or how you do it, developing an apprenticeship culture is a must in every small business. An Employee Delegation Plan is one of our 36 Coaching Modules Bullets that we focus on with our clients. Here’s an article on the Top Ten Strategies to Retain Your Employees.

 

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Top Ten Strategies to Retain Your Employees

Top Ten Strategies to Retain Your Employees

With our robust economy, unemployment levels are at record lows. To find and retain your employees is one of the biggest challenges facing small businesses. And costly! Experts estimate that it costs between $10,000 to 1.5 times their annual salary to bring on a new hire. Here are the Top Ten Strategies to Retain Your Employees and grow your business.

Top Ten Retention Strategies to Retain Employees

What can business owners do to keep their employees? Here is a top ten list.

1. Keep Your Vision, Values, and Mission in Front of Your Team

There is a saying that “Where there is no vision, the people perish.” Once you have clarity of where you want your business to be in five years, what your company does for customers, and how you want your employees to treat each other and your customers then make sure you reinforce your VVM at least weekly in your meetings and other communication. Having a compelling vision keeps employees excited, and more importantly, keeps YOU excited!

2. Encourage Your Employees To Grow Within and Outside Your Business

Offering promotion from within is a powerful motivator to your employees. To demonstrate that you are preparing them for promotion, find ways to train them.  Some examples of this can be implementing a training program or using outside resources and tools (such as workshops, books, online courses, etc.). Doing this can create a powerful incentive for your team members to stay over the long haul. Something as simple as creating a book of the month club can work wonders.

3. Involve Your Employees in Your Strategic Planning

Once you have developed your plan, bring your employees in and share your vision, values, and mission with them. Enlist their ideas and input in brainstorming sessions to create actions for the plan and then assign the employees with the ideas to carry out the task. This creates buy-in from your team.

4. Encourage Employees to Be Creative

Many companies say they value creativity but they don’t have any initiatives to support creativity. Below are some possibilities:

Offer rewards for creativity. Recognize and reward employees that contribute ideas that you implement.

Provide a private and public way of sharing ideas. Some employees don’t want attention and others do. This can be as simple as a suggestion box for private comments and a meeting forum for public comments.

Develop a fun working environment. Foster a caring and fun working environment to encourage spontaneity.

5. Deploy and Reinforce Your Values In The Workplace

The Golden Rule in the workplace when fully deployed can create a great sense of belonging and loyalty. A culture of respect can be fostered by implementing many of the following strategies: feedback, recognition, encouraging creativity, collaboration, and so on.

It is essential to empower your team members with kindness and thoughtfulness and to reinforce those values when practiced(and confront team members when not practiced).

6. Catch Your Employees Doing Something Right

Leaders tend to focus on problems and sometimes employees can get burned in the process. Stephen Covey wrote about making “Emotional Deposits” with people. If you build up their “Emotional Bank Account” then you position them to make a withdrawal when you need to provide constructive criticism.

Make it a point to look for positive acts from your team members and build up their accounts. Tell others about what you “caught” your employees doing.

7. Offer Competitive Compensation

Many business owners are stuck in the past with wages and are losing their employees to their competitors.

Your team members need to be able to cover their cost of living, and to feel like they are doing good, rewarding work. Research what a competitive salary would be for your employees and start paying them what they’re worth. If necessary, raise your prices to give you room for pay increases.

8. Resist Changing Things Too Quickly

Changes are constant can also be very stressful. New initiatives and system changes in your company should occur, but forcing too much change too soon can cause good people to leave.

When changes are necessary, involve your employees in the process. In the same way that you involve employees in planning, get their input and ideas on how to make the changes.

A thought to remember with leadership: leaders determine “the what” and employees determine “the how.”

9. Maintain a Clean and Safe Environment

Your employees spend 1/3 of their day in your facility; you want that time to be positive. You want to maintain a safe and comfortable working environment. Conduct a walkthrough of your facility and write down issues that need to be improved. Ask your employees for input with this. Or bring in a friend to give you a “fresh set of eyes.”

Cleaning house should not be limited to clutter. That can also include dismissing employees that are harassing, causing distractions, or not cooperating.

10. Provide Your Employees With Technologies and Tools That Set Them Up for Success

Sometimes it’s easy to overlook new technologies and tools that can make your employees and your business successful. Check with your industry association to learn about the latest offerings.

Conclusion

In summary, let your employees know that you care about them. Listen to them, pay them well, promote them and involve them in your success. Now that you have read and implemented these top ten strategies to retain your employees. Which of these work the best for you?

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Finding and Training Great Employees Part 3

Training great employees
Read Finding and Training Great Employees Part 1 and Part 2.

Training Your Dream Employees

Once you have landed your dream employees through a rigorous recruitment process, it is essential that you continue to invest in your decision by putting them through a thorough training process. Training great employees makes them a great asset and grow professionally, and this makes them stay in your company.

Training is Important for Employee Retention

Training an employee is actually an element of recruitment. A new employee’s orientation and training set the tone for their entire employment; this includes their impression of your business, its systems, and respect for its leaders. This has an impact on your ability to retain good people and avoid unnecessary or redundant recruitment processes.

Too often, businesses rely on junior employees to train new ones without any guidelines or ‘curriculum.’ New employees are thrown into the deep end without clear expectations or an understanding of ‘how things are done around here.’

Your Leaders’ Involvement in the Training Process

These elements affect how an employee perceives their own required level of effort or performance. A business that doesn’t give much thought to planning, expectations, and preparation will end up showing a new employee that the same lack of attention is expected from them.

Here are some things to ensure you implement when you create your comprehensive training system:

Prior Learning / Existing Knowledge

Acknowledge your new employee’s prior learning, and don’t overestimate or underestimate their existing knowledge.

Choice of Trainer

Investing time and effort in training employees, make sure the person or people who will be training the new employee are sufficiently qualified and experienced. If an administrator is leading a salesperson’s training and orientation, consider asking another salesperson or more senior team member to assist on specific days or sessions.

Training Materials

Have all the required training materials handy. This includes company manuals, industry guidebooks, common reference materials, work samples and anything else that will aid in the training efforts.

Training Tools

Also, ensure you have the tools available to train your new recruit. Will the training be held at their workstation or another workstation? Do you have all the software you need? All the equipment required? Doing so will ensure the training runs smoothly and the time provided will be used effectively.

Time for Training

Provide more than ample time for training – including time for questions and elaboration. Rushing training benefits no one, including your profits.

Testing to Ensure Mastery

Consider including some ‘tests’ or checks to ensure the new recruit understands each component of the training. Ask the trainer and the trainee to sign-off on each section.

Employees’ Part in the Big Picture

Each team member’s role is part of a larger picture: the company as a whole. Ensure that the trainee understands how their role contributes to the big picture on each level. If they are a junior member of a department, they should understand how their job contributes to the department, as well as how the department contributes to the entire company.

Encourage Employee Feedback

The trainee should be able to ask questions and review information at any time – including after the training process. Create an environment that encourages open dialogue and encourages employees to ask questions when they are unsure of a task.

The other common mistake that many companies make is ending training after the first few weeks of a new recruit’s employment.

Ongoing Employee Training

Training our employees is an ongoing process for every single member of your team, and there should be a system or structure in place to ensure that staff training and development happens on a regular basis. This can include cross-training, employee development, and new systems orientation.

Benefits of Regular Training

Regular training not only benefits your staff and improves their performance, but it allows you – the business owner – to:

• Implement new policies + procedures
• Invest in your staff, thereby improving confidence and morale
• Evaluate staff performance at an individual and team level
• Reward staff based on performance improvements
• Provide a regular arena for feedback and discussion, including positive and negative experiences and issues

One-on-One Training + Evaluation

An effective system of ongoing training for employees is by weekly, monthly, or quarterly staff reviews. When conducted one-on-one, this provides a forum for regular communication with employees to review performance and identify areas for improvement. A one-on-one environment will encourage more open and honest dialogue than if the session were conducted as part of a team.

As a business owner, these sessions are valuable sources of information and insight into the strengths, weaknesses, and motivations of your team.

Senior Staff Mentoring Junior Staff

If you have a large staff, consider pairing junior staff with senior staff and establishing mentorship relationships. This is a powerful way to build the synergy of your team and frees you up from weekly meetings with each staff member. Instead, each senior staff member can report back to you on the results of their regular training sessions, and you only need to conduct these sessions with your senior staff.

Team Training Events

Team training events are great team builders and provide insight into how your team interacts as a whole. These can take the form of “lunch and learns”, where senior staff or guest speakers conduct an hour-long session with staff members or more social team-building exercises with a less formal program.

Team training exercises will shed light on the leaders and followers in an organization and bring together employees who may work outside of the office. These can be especially helpful if you and your senior staff do not see the team ‘in action’ on a daily basis.

Keeping Your Dream Employees

Now that you have spent hours of time and potentially hundreds or thousands of dollars recruiting and training your staff, your human resource job is done, right?

I suppose you’ve done what you’ve set out to do: get the right people working for you. But what happens when those people get bored? Or stolen by another company? Or feel they’ve “done all they can do” at your company?

The final step in the overall recruitment process is employee retention. This includes keeping your employees happy, supporting their development, and giving them an incentive to continuously improve their performance.

Your Work Environment

The environment you create for your staff has a huge impact on your employee retention rates. This includes the interior design and layout of your office or business, the lighting, plants, and kitchen amenities available. It also includes the culture of the company – what is the general working atmosphere? Are most people loud? Quiet? Is there a buzz or hum to the office space?

The bottom line is that employees should enjoy and feel comfortable coming to their workplace – they do spend most of their waking hours there.

Spending a little more on comfortable office furniture and amenities like coffee, tea, snacks, and social spaces will go a long way toward keeping your employees happy at work.

Recognition, Rewards, and Incentive Programs

Did you know that many employees place more value on positive public recognition for a job well done than they do on salary?

Recognition and rewards are powerful tools when it comes to keeping employees happy. Positive feedback from those in more senior positions has a higher perceived value than a 3-5% salary increase – and it costs the business little to nothing to implement.

Retaining Your Employees

Incentive programs are a formalized way of rewarding employees for their achievements and successes. Clear targets and milestones are identified, and when an individual or team reach those milestones they are rewarded with bonuses or prizes.

Recognition, rewards, and incentive programs are an important part of employee retention, as well as team building. They will be discussed in further detail in the Team Building chapter.

Professional Development Programs

Another common reason employees choose to leave their positions is professional development. Many feel they need to move to another company in order to develop their careers or gain more responsibility. They may not necessarily dislike their current role, but become bored or stagnated and believe they have ‘done all they can do’ at that particular company.

Keeping good people means providing opportunities for growth and advancement within your company. This benefits the company because you can hire from within, and save money and time on recruiting and training new staff. It also benefits your employee and increases their loyalty toward your business.

Staff Retention

Professional development programs are an important part of staff retention – but they are also an important part of business growth and development. A company with staff who are always increasing their knowledge and improving their skills will stay on the ‘cutting edge’ of their industry and have an advantage over the competition.

Ongoing training and development should be a primary focus for any growing business. Here’s why:

• Increases productivity
• Increases staff retention
• Increases workplace safety and morale
• Increases customer service
• Increases sales

Professional development programs typically focus on the big picture ambitions of the company and its staff members. The longer-term goals and career ambitions are recorded and taken into consideration.

Professional development can be easily worked into your ongoing one-on-one training systems. Keep a folder or binder for each staff member that outlines current role responsibilities, short and long term goals, and areas for improvement, and review it during your weekly or monthly meetings. Identify specific areas for growth, and develop plans of action for that growth.

For example, if your marketing assistant wants to grow into a marketing coordinator or manager role, and needs to improve her people management skills, consider putting her through a management course.

Simple System Tools for Employee Retention

Maintaining this program doesn’t have to be a time-consuming task. With some simple system tools and a commitment to regularly scheduled meetings, you can have a clear and effective program for your staff.

• Evolving job description documents to monitor roles, responsibilities, and tasks
• Regular performance evaluations
• Goal planning worksheets
• Continuing education programs at local business schools
• Regular meetings between staff and supervisors
• Rewards and incentives
• Difficult to re-organize
• Best for smaller lists

Conclusion

Finding and retaining employees is one of the most challenging issues that small business owners are facing. Implement these practices and see your business take on a life of its own!

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