Only one reason to have a business
When we first go into meetings with Chairmen, MD’s or
owner-manager’s we always say the same thing, "There
is only one reason to have a business and that is to sell it."
They all say, without exception, "Yes we know that." They
sometimes add, "Why are we paying this guy to tell
us something we already know?"
So our next question is usually, "Well then what are
you doing, right now, to improve the equity value of this business?"
Now, we have worked with household names. We have worked with
big businesses and we have worked with one-man bands. Next
time your life is short of waffle go and ask any one of them
that last question.
"We are working to improve profit by 2% per annum."
"We have a series of meetings with our stock-holders
next month."
"We are looking at a cost-cutting exercise which will
save us £2M."
"No-one would ever buy this business."
"Why would I sell? What would I do then?"
When we tell them how to improve equity value they say, "But
we’re already doing that!" So why wasn’t
that their answer?
By the way we have this conversation every day.
If you do not have a destination, where are you going? If
you do not know where you are going why are your staff following
you?
If winning isn't everything, why do they keep score?
Vince Lombardi |
The most important line in your business plan is the one that
states where your business will end up.
Your business cannot go on forever because you cannot go on
forever.
The most important line in any business plan is usually missing!
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