We see a lot of businesses. And financial statements. And business models. And methodologies. Some good, some not-so-good. Because of that we’re often asked for recommendations and best practices to increase the value and sellability of a business. So, we thought we would dedicate this month’s newsletter to a few of our top recommendations that you might want to check out.
#1: Entreleadership by Dave Ramsey
You may have heard about Dave Ramsey because of his talk show, his book The Total Money Makeover, or “debt snowball” concepts in personal finance. Ramsey is also a powerhouse of information for business owners and the methodology that made him so successful is explained very well in Entreleadership (a mashup of “entrepreneurship” and “leadership”). Although not a requirement, it is best suited for Christian business owners who want to grow a strong team and build a business that you will be proud to own. Pro tip: If you like the book, consider joining an Advisory Group of other small business owners throughout the United States through Entreleadership ELITE. It’s incredibly beneficial to have a built-in support system…as business owners, it can get lonely at the top!
#2: Traction by Geno Wickman
The Entrepreneurial Operating System® (often referred to as “EOS”) is a practical method for achieving the business success you have always envisioned. It is a tactical approach to running your business on a daily, weekly, monthly, and annual basis. When we come across an EOS company in our work, they are some of these strongest companies we’ve ever seen who are ripe for both organic growth and acquisition. If you’ve ever found yourself having a hard time staying focused or making headway on something you know you need to do, you will enjoy the approach used in this book.
#3: Profit First by Mike Michalowicz
Have you ever looked at your operating account and decided to reduce what you pay yourself in order to cover all the bills or make payroll for your team? Or perhaps you triage your bills and only pay yourself if there is something leftover? It’s a common occurrence, but it’s not indicative of a healthy business. When you embrace what you learn in this book, you will pay yourself first and then allocate to expenses. The best-practice percentage allocations in this book work and, if a business is successfully following the model (which requires a shift in thinking and behavior), the increase in value is likely to follow. Side benefit: When you follow Profit First and your tax bill comes due, it’s not a stressful event because you have what you need sitting in your tax account…that’s empowering!
Now, you might be asking yourself if we practice what we preach? We DO! In fact, we utilize all three in concert by attending our Entreleadership Advisory Group twice a month, following EOS, and using Profit First with every dollar of revenue we earn. In fact, since implementing the last two components in 2021, we had our best year ever!
Happy reading and let us know when you’re ready to start the conversation about maximizing the value of your business whether you sell now or sell later.