How to Build a Management Team to Take Your Business to the Next Level

When a customer asks you the price of something you sell, your reply will be confident and immediate. But what if someone wants to know how much your business is worth? What would you tell them?

If you don’t know for sure, you’re not alone. Few business owners know for sure what their company is worth. They may venture an estimate based on the sales prices of similar businesses, but the figure is usually way off the mark, and this is a problem.

Knowing the value of your company is essential for three reasons:

  • It guides growth. Your business’s value is indicative of how well it’s growing. While sales volume and cash flow are good indicators, they aren’t the only ones.
  • It informs your planning. Without knowing what your business is worth, it’s difficult to plan for the future. If you sell, will you have enough money for retirement or post-company goals?
  • It gives you time to adjust. Knowing what your business is worth makes it easier to determine how long it will take to grow the company to where you want it to be.

You created a company that filled a void in the marketplace, but building its value is not something you can do alone. You need a team of strategic thinkers who will help you grow the company and transform it into a scalable, long-lasting, and high-value entity.

Build Your Management Team

When you want to grow in a competitive marketplace, building a solid management team is not optional. Not only is it a top driver of business value, it can also grow the company, reduce risk, and provide transferable benefits to a new owner (resulting in larger purchase offers).

Here are some tips for building a management team with the right combination of personalities, abilities, and experience.

  • Create a hiring scorecard. Once you’ve identified the ideal candidate, use a numerical scoring system that allows you to easily compare candidates to one another. If you talk to a lot of applicants, these cards can facilitate recall.
  • Convey your expectations to interviewers. If you have a headhunting firm or any of your staff doing preliminary interviewers, make sure that they understand your expectations, so that your hiring pool is limited to the most qualified candidates.
  • Hire based on performance. Don’t be swayed by an impressive resume or an Ivy League school diploma. Look for personality traits, experience, and skills that meet the assessment variables for the job role.

Business owners with a management team they can trust will enjoy the privilege of watching their companies grow in new and exciting ways. For many entrepreneurs, their ultimate goal is to build a business that meets changing customer needs while standing the test of time. The right managers can make that happen.

Getting an understanding of what your business is worth starts with a professional valuation. If you’d like assistance in determining the company’s value, contact Soterian. One of our driving goals is to help business leaders take their companies to the next level, and an informed valuation can get you there. To learn more about the Soterian Process of Finding Your When, click here to schedule a time to discuss how we can help!

The following two tabs change content below.

Soterian

At Soterian, our goal is to help business owners like you think bigger. Bigger than today, bigger than your business, bigger than yourself.

Latest posts by Soterian (see all)

%d bloggers like this: