Dang, it feels good to be a Rock Star… But does notoriety grow value?

Being a business owner isn’t always glamorous. There are long hours, financial worries, never-ending government reporting, and so on. But then there are times when things are in full harmony. Employees are inspired by you, suppliers are begging to pitch to you, you solve the problems no one else can and customers are begging to work directly with you. It feels good to be the man or the woman Rock Star they are calling back for an encore!

The problem is that being the Rock Star for everyone all the time is not sustainable. What happens to your business if you have to step away? Sure things might survive a week or so if you’re down with the flu (as long as you can access email). But what if you really had to be away for three or four weeks? Would your business suffer?  Better yet, what if you wanted to step away from the day-to-day? Could you?

Most owners find themselves involved in too many aspects of their business. There’s just something rewarding about solving problems, being the hero, and bringing it all together for the team.

But owners who build a company that can run without them, actually add value to their company making it an asset and not just a j-o-b.

Being a Rock Star in your business shouldn’t be about taking on all of the big challenges yourself. It should be about enabling your team through product focus, training, processes and culture.

How do you know if being the Rock Star is hurting your business value? Ask yourself, “Does business slow down when I’m away? Who do customers go to when something goes wrong? Has revenue plateaued because I no longer have more minutes in my day?”

Also, please know that being profitable and valuable is not the same thing. Instead of hiring salespeople, the owner- seeking to maximize profit - would do the selling himself or herself. Instead of hiring a management team, the owner seeking profit would perhaps hire the lowest-paid staff member to simply execute their demands. This may show higher profits this year, but the owner may be leaving a lot of money on the table when it comes to their company’s value.

Contact Sand Dollar Business Advisors

Contact me at Engel & Volkers - First Coast if you find yourself answering “yes” to one or all of these questions. We can help owners build value in their businesses and trade notoriety for business value.