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What is the Biggest Threat to the Value of your Business? | Clarus Advisors



What is the Biggest Threat to the Value of your Business?

There are so many reasons a business can be derailed, lack of capital, poor execution/delivery, new technology, new competitors.  The list can go on forever.  Building value in your business takes patience, discipline, and perseverance.  It requires you to create a practice that clearly identifies the WHO, WHAT, WHEN, WHERE, HOW and most importantly the WHY surrounding your business.

Understanding “Where you are going, How you will get there, and Why you are going there.” Will help you stay on track.  But you also need to build repeatable processes and systems that your employees and customers clearly understand.  In addition, you need to be acutely aware of what new products and trends are impacting or may impact your industry, or who new potential competitors may be.  Finally, you need to build a “thinking platform” that allows you and your advisors to clearly and unbiasedly assess your progress.

But, doing all of this right still doesn’t necessarily add value to your business.  Because the single biggest impediment to increasing the value of your business is….


You are the reason your business exists. You had the vision, fortitude, and perseverance to get the business going in the first place. How can you be the biggest threat to creating value in your company? Simple: If you are central to the business, it does not stand without you. Hence, if you are the force behind your company’s value and you exit, value is destroyed.

How can you tell if you are the center of your business’ universe.  Try asking these simple questions:

1. Do you own the business or does the business own you?

Can you take a vacation or sick day without worrying about the basic day to day functions of the business? Or are you the person who brags that the business would be nothing without you.

2. Are you comfortable delegating important tasks within the business?

3. Do you listen to your advisors and act accordingly or do you surround yourself with “YES- People”?

In order to build lasting value in your business that goes beyond a high income for you, you need to build a business that can stand and flourish without your needing to focus on every detail or make every decision.  You need a strong management and advisory team.  You need simple processes that can be executed flawlessly nearly every time. You need to build an organizational culture that is consistent with your vision.

In short, to build lasting value… you need to move beyond an entrepreneurial mindset and begin thinking like a CEO.  By making yourself dispensable… you shift the value in the business from YOU to the business itself.  By doing this you create a better and more sustainable wealth engine.




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"This quick, thorough read is designed to help any sized owner or entrepreneur improve their business and its chances for survival in today’s tough economy." – Dr. Benjamin Ola Akande, Dean of George Herbert Walker School of Business and Technology at Webster University"