The Business Transition Blog

Get a Coach and Make $2,777 per Hour

Life is getting more and more complex. There is so much to learn about in areas that seem to be black holes for our time.

If you want to maximize your marketing efforts you now need to know about search engine optimization, social networking, Twitter, interactive websites, text messaging, Facebook and other funny sounding titles – most of which didn’t exist five years ago!

If you want to know about investing your money, you need to know about ETFs, MERs, TFSAs, RRSPs, GICs, RESPs, REITs, and a thousand other iterations of the alphabet.

If you want to know about going green, you need to learn about solar power, wind power, composting, recycling, hybrid cars, fair trade and organically grown chickens.

If want to sell your business, there are also many new ideas for you to learn.

But where can you get the best return on your investment of learning time? Learning about social marketing or learning about preparing your business for sale?

Suppose when your financial advisor asks you what you believe your business is worth so he can consider it as part of your retirement plan, you tell him $2 million. You may or may not be right, but let’s say that you are. If you could increase the value by 25 percent over the next 36 months by learning how to prepare your business for sale, perhaps investing 5-10 hours per month, your value increases to $2.5 million. Not bad!

However, if three years from now you haven’t done anything differently, and you had to sell because of a disability that prevented you from running it any more, or your market goes in the toilet, or you have a new competitor with deep pockets, your business may very well lose 25 percent or more in value, dropping it to $1.5 million.

So the difference isn’t just 25 percent, it’s an easy 50 percent. On a $2 million company, the planning and actions you take over the next three years could be worth $1 million! One million dollars divided into 36 months or 360 hours of effort is $2,777 per hour or $27,777 per month. Can you think of any more profitable way to spend your time?

So get started. Start educating yourself about how to increase the value of your business. Knowledge and understanding lead to confidence and action.  Better to go into this knowing what you’re doing than to delegate it to people who may or may not have your best interests in mind.

To start, read The Business Transition Crisis and then I’ll be recommending other books in future blogs that can help you get a better grasp of your opportunities and threats.