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Feb 15

Does your business have any goodwill?

Posted by Andrew Geddes at Monday, February 15, 2016

Every day I read about vastly indebted governments, bloated bureaucracies, rampant addiction to welfare, budget deficits, trade deficits, asset bubbles and global deflation!!!!

Resource prices have tanked too.
And wars seem to keep getting more entrenched in various parts of the world.
No wonder the stock market is volatile!!!!
Then the politicians keep their snouts in the short term troughs of getting re-elected.
And the baby boomers are going to sell their businesses to fund their retirements in ever growing numbers.
As a bloke who’s worked all his life with business owners, it makes me worry about the future.
What can we do to protect ourselves from this risk of not selling our businesses or no goodwill?

Here’s my 40 year’s take on it…
  • take some uninterrupted time to think about how you can make yourself redundant
  • list all the things you do and who else might be able to do them
  • list which things might be automated 
  • list all the things to have documented processes (quality management concept)
  • get this done and delegate much of what you do 
  • focus on creating quality products or services and do it better than your competition
  • focus on quality customers and ask them what they want, like and need
  • put examples of outcomes achieved for your customers on your website and in your eNews and in social media
  • go on 6 weeks leave and see how the team handle it
If you can’t find an external buyer (big corporate or competitor), consider selling your business to your senior management team (SMT).
If you haven’t got a SMT, create one.
Have a planning day with them.
Set budgets and report monthly financial performance.
Identify three critical areas to improve in the next quarter (your strategic imperatives).
Establish project groups in your business to action these imperatives.
Exhibit contagious enthusiasm for these projects.
You might have to offer small percentages of equity to them at first and maybe vendor financed.
They have to sit around the board room table to feel the heat of decision making.
Send them to our “Leadership for Profitable Business”  workshop Nov 24/25 in Brisbane so they are further educated and their confidence builds.
Educate their spouses too!!!!
Then maybe you can create a succession solution for yourself in time. Good luck with it.
Andrew Geddes
5th February, 2016.

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