by Coach Frank Bonnin

A business owner should have an end goal, a destination, in mind for when they no longer want to be running their business.  Often the goal is selling the business when they are ready to retire.  Generally, they will talk with a business broker who arranges the sales of businesses. A broker will share ways to increase the value of your business.

One of the most important things you will learn when you talk with a business broker, is how much the owner works in their business is inversely proportional to how much that business is worth. 

In other words, the more the owner works in that business, the lower the value of that business.  When coaching our clients, we focus on creating those systems that enable the owner to empower their team to run the business.  This allows the owner to step back from the business. 

By creating a business where it is possible for you as the owner to step back, it will increase the value of your business. 

The value of a business is generally identified as a multiplier of the revenue.  It is one of the most common ways of identifying the value.  If for example, all/most of the revenue that comes to the business is due to the owner in a business where the owner must be there, when it comes time to sell that business, you’re not selling a business, you’re selling a job.  The next person who buys that business is going to wind up doing that job.  In that situation the multiplier of what the business is worth as far as revenue is probably pretty low, likely less than 1.  So, if you have revenue of $100k, the business may only be worth $50k.  

Conversely, let’s say you have a business where the owner is not doing it all.  They have employees who are working in the business providing all the product/service delivery.  They have systems in place so that the product/service is delivered consistently every time.  All that is required from the owner is to maybe manage the team for an hour a week. 

Now you have a business owner that is not selling a job but actually a business that is creating profit for the next owner.  In that instance, if you have a $100k in revenue, and you go to sell it, that $100k in revenue has a higher multiplier to establish the value of that business.  It could be as high as 10 maybe even 15.  So, with $100k in revenue, this business could be worth a million dollars.  Maybe even more depending on the industry. 

At Wasatch ActionCOACH we work with you to increase the revenue of the business, but also increase the value of your business.  We help owners create the systems needed to consistently deliver their products/services.  We help owners develop and empower their team to take on more responsibility so the owner can work towards stepping away more often.  They have the freedom to take those family vacations they haven’t had time for.  When owners understand that by stepping away from the day-to-day activities of the business, the value of their business increases, it can also remove guilt they feel about taking time away. 

We understand that it can be a challenge for owners to step away from their businesses.  They may feel that things will not be done right without them there.  They may feel guilt when they do leave for vacations.  There can be this ‘entrepreneurial’ mindset that you must work hard nonstop for the business to be successful or for them to be considered a successful entrepreneur.  However, that is a fallacy.  You do not have to stay in the grind forever to be successful.  It should not be a badge of honor that you work 80+ hours a week and haven’t taken a family vacation in 5 years. 

It is important to us to reeducate business owners and help them work on removing negative mindsets. At ActionCOACH we believe that a balanced work-life is possible (and important) for business owners.  And we will work with you to increase the value of your business, but also improve your life overall. 

If you are a business owner who:

• has a terrible work-life balance
• feels they need to be at their business every day for it to be successful
• wants to ultimately sell their business
• wants to increase the value of their business

Give me a call.  Send me a message.  Attend one of our workshops or lunch-n-learns.  Schedule a complimentary coaching session.  Our mission is to ‘Improve all lives along the Wasatch Front.’  We’re here to help you increase the value of your business!

Blog by Coach Frank Bonnin

If you are a business owner and are considering hiring a business coach, there are a few things that you should look for. First, do some research to learn about the coach. What is their experience?  Do they work with businesses like yours?  What coaching system do they utilize?  Does the coach have a system? If the coach is going to be helping you create systems, the coach should have systems themselves.

Is the coach focused on business?  For instance, are they a Life Coach that also focuses on business?  Life coaches are great and they help people in a lot of ways.  Life coaches are not business coaches. Business coaches have some life coaching ability, but really they know that the business is the vehicle that will bring the business owner to the goals and dreams that they are aiming for. As a business coach, they need to be able to address very specifically and very knowledgeably the aspects of what makes a business work, what makes a business succeed.

The business coach must understand all the aspects of business. They must understand everything from the financials to sales and marketing, to client experience, and team building, etc.  Not all coaches know those things, so research their professional experience prior to becoming a coach and their experience as a business coach.

Next thing you want to look at when hiring a business coach is the credibility of the prospective business coach. We live in a reputational society. It is so easy now to find out what other people say about businesses, organizations, and other people. Researching the reviews of a prospective business coach should be easy to do.  Read all their reviews on Google, Facebook, etc.  Are they from business owners?  Are the reviews related to the business itself?  

Do the reviews specifically address the things that you are hoping to get out of working with a business coach?  For instance, if you are looking for help reaching financial goals, do any of the reviews address that?  Maybe your goal is to work less in the business to have more free time with your family.  Are there any reviews that address that?

Make sure you meet in person before hiring a business coach.  You will be working very closely with your business coach for a good while, so you want to be sure that it is a comfortable relationship.  Do you like their personality?  Are they a positive person?  Are they direct?  It will be most beneficial if you can build a good rapport with your coach. Remember that they are a coach! This person will be providing education, holding you accountable and cheering you on, just like any sports coach. 

Does the business coach offer any sort of Guarantee?  If so, make sure you get all the details on this guarantee.  Ask if they have had any situation in which they could not help a business owner and gave their money back.  If they do not have a guarantee, ask why that is the case. 

Does the coach offer a complimentary coaching session?  This is a great way to get a sense of how the business coach works and how they can help you specifically.  If they do offer a free session, take them up on it!  It will help you determine whether you can build a good rapport.  Make sure to prepare your questions ahead of time to take full advantage of the complimentary coaching session.  Afterwards, take stock of how you felt leaving the session.  Did the coach leave you feeling inspired, like you can achieve your goals and dreams? 

When hiring a business coach also consider whether the coach has a variety of program / coaching options from which to choose?   Businesses vary greatly in size and revenue.  Some business owners have the time and capital to devote to 1 to 1 coaching right away.  However, some smaller business owners or solopreneurs may not be able to do so yet.  If that is the case, what other coaching options are provided?

Last, but not least, when hiring a business coach don’t rush into a commitment!  Hiring a business coach is a big deal.  It is meant to be a long-term relationship and will be a significant investment of your time, energy, and resources.  Avoid high-pressure sales tactics.  A good business coach understands that business coaching is an investment and will give you the space you need to make your decision.

by Coach Sterling Broadhead

At ActionCOACH we teach that there are 6 Keys to a Winning Team. 

Key #1 is Strong Leadership. This is very important for you to have a successful team! You have to have strong leadership and leadership can take many forms. I like to ask participants in our seminars and workshops, “What is a strong leader to you? What traits do strong leaders have?” Personally, I refer to a lot of my military background. Some of the strongest leaders that I have experienced are ones who show confidence. They are also able to instill that confidence in the team. They incite the same excitement in the team to go accomplish its mission. It is the same in business. Small business owners need to be strong leaders and they must be able to show that confidence in their mission and their vision.

Key #2 is having a Common Goal. Too many times we have business owners that have a general idea of what they want to accomplish but they have never really written it down. They have never shared it with the team, and they don’t share it with their clients and customers. That’s a big failure! To be able to have a winning team, you must have a common goal. You have to understand what you are trying to accomplish. What you are trying to achieve. So, making sure you have a common goal and you share it frequently helps in this momentum to have a successful team.  

Key #3 is Rules of the Game.  Just like playing an organized sport you must understand the rules of the game. Coaching staff has to impart the rules of the game to the team. That way they know what their goals and boundaries are. Then you allow flexibility for the team to accomplish what they need to. If you identify the rules of the game, set the boundaries, and help them understand what’s required to be successful, that’s how you set up your winning team.

Key #4 is an Action Plan.  This is a perfect reminder because this quarter we are promoting GrowthCLUB, which is our workshop where you develop a  90-day action plan. This is so very important for business owners. You have to come up with an action plan for the specific goals you want to achieve. Once you identify a goal, you break it down into smaller goals. “When do you need to start? What do you need to do in week 1, week 2, etc. to reach the goal?”  These action plans are so important for a successful and winning team. They will allow the team to clearly see the specific path to get to the end result.

Key #5 is to Support Risk Taking.  Often it is difficult for leaders, especially business owners who are used to doing things all on their own, to change their mindset. If you have the mindset that the only way something is going to get done right is if you do it yourself, then you’re not going to have a winning team. It’s better to have a mindset that allows others to contribute and to supports risk-taking.  

To be able to get buy-in from your team, they must feel like they can contribute ideas and that you support them. You may not like every idea they bring to the table. However, if you support that risk-taking, then everyone can learn from every experience, even mistakes. That can be more important to the team and the future than never allowing others to contribute ideas.

Key #6 is 100% Involvement / Inclusion. Your team needs to feel like they matter.  Like what they contribute to the team is important. If you can develop that sense of inclusion, that sense of belonging, where every team member feels included and significant, that will help create a winning team which will propel the business towards success.

Are there any of these keys to a winning team that you are not implementing? Would your team say that you do employ these keys? If you own a business, it is worth taking the time to really look at your company and team and see where you can improve.

Wasatch ActionCOACH can help you create your winning team and the business you desire. Contact us to find out how.

For additional information and resources related to a winning team, check out our TEAM YouTube Channel playlist.