Internet Radio Show: 21st Century Entrepreneur | Effective Communication Strategies For Entrepreneurs | Aired Friday, March 6, 2015 at 12 NOON
This Friday March 6 we will be airing another episode of “21st Century Entrepreneur” which is an Internet radio program aimed towards educating business owners and their advisors on how to make their businesses more successful and profitable. It is a show hosted by JC Maldonado who is the CEO of BizGro Partners, a Business Development Firm that helps small and midsize companies grow, expand, and transition. This week we will discuss the importance of communication in business. We will have a special guest. His name is Dr. Steven Martello who is the Chairman of a successful International Security Firm and has ownership interests in several business ventures. Further, Dr. Martello has experience as a founder and an officer of a successful public company that traded on the NASDAQ in the 1990s and has experience as an executive in the public arena under the Reagan Administration. What Dr. Martello knows best is how to deal with people. During our interview he will be sharing with us some of his experiences and strategies on how to influence people in a positive manner.
Below is a blog discussing the skill of operating a business without your day to day involvement. Finally, we have recently been covering the importance of leadership on our last 4 episodes. To hear recorded versions of these shows, click on 21st Century Entrepreneur Archives.
4 Keys to Breaking Free From Your Business
In one of our past blogs we addressed the number one killer of business enterprise value, a business’s total dependence on the owner for survival and success. We pointed out that if a business is totally dependent on the owner, the business will not be sold for any significant value in the marketplace. Today, we will cover 4 keys to building a business that does not involve your day to day involvement as the owner.
Build a Leadership Team
If you are the only leader in your business, everything will start and end with you. The key is to assemble a team of people that run different areas of your business. There are 3 areas of your business to concentrate on. First, you need to recruit someone who is responsible for sales and marketing. Obviously you as the owner may be the strongest salesperson in your organization. However, if you are going to grow you either have to develop a sales staff or outsource sales and marketing to a competent outside firm. Remember, even if you bring in outside personnel, you as the owner must be fluent in sales to oversee the sales leader or personnel you bring in. Second you must bring in someone who is responsible for running the day to day operations. This person should be responsible delivering the product and service to your customer. Basically this head of operations must be in charge of customer retention and customer happiness. Finally, you must bring in someone who can manage your company’s day to day finances. Without monies being managed, it will be hard for a business to produce consistent cash flow. By developing a team that oversees different areas of your business, this will automatically free your time up to concentrate on the growth of the business. Further, if you were to sell the business, the management team, with all of their skills and experience, would most likely come with the business purchase.
Use Up to Date Technology
With regard to technology, the world has changed more in the last 5 years than it has in the previous 30. It is unbelievable the available technological tools that are available to run your company. These tools range from accounting software, to email marketing software, to customer relationship management software, to video camera security systems, to time sheets, to point of sale systems, to software that helps you get contracts signed, to dashboards aimed towards measuring and controlling your business’s data. This technology enables you to run your company from your cell phone or tablet device or from the comfort of your own home. It also enables you to run the company without your day to day presence. In many cases, you may not even need an office and can manage employees off a virtual system that allows them to work from home. Your business, using the latest and greatest technological tools, can yield more marketplace value to a potential 3rd party buyer.
Develop Business Processes & Systems
Technology does not comprise of a business’s systems solely, although it can certainly aid one in developing business systems. Nevertheless, look at business processes and systems as the method in which your business operates in any given moment. It is important to develop processes and systems so that the business can perform consistently over the long haul. It is also important to develop systems for the purposes of developing your brand. Whatever you promise the market, you must deliver to your customers all the time in order to influence the marketplace’s perceptions. If an owner wants to develop strong systems and processes, he or she must develop processes for marketing, sales, customer service, product and service delivery, product ordering, choosing suppliers, financial management, budgeting, hiring and firing, employee training, and sales training. With these systems and processes in place, along with the right people to run the systems and processes, the owner has the opportunity to operate the business without him or her.
Hire A CEO/President
The last step of freeing yourself is to hire a CEO/President to oversee and lead your management team. Most founding owners take and carry the title of CEO. Although this is an admirable title, especially if you are earning a considerable amount of money, it still implies that you the owner are critical for the day to day success and operation of the business. However, if you are to hire a CEO who does not own a substantial equity interest in your business, you have taken the first step towards freedom and can really focus on the strategic growth and culture of the business, while the CEO and your leadership team can run the company towards success with your outside guidance. An owner with a CEO and management team probably owns a business that produces a lot of income for him, without him having to be involved in the day to day operation of the business. And it is this type of business that possesses true enterprise value in today’s marketplace.
If you want to learn about increasing your business’s sales, profitability, cash flow and enterprise value, call us at 201-496-6931 or email us at email@example.com.